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Showing posts with label paid clicks decreases. Show all posts
Showing posts with label paid clicks decreases. Show all posts

March 30, 2008

Arresting Click Fraud :How Google prevents Click Fraud


In a recent post at Google blog. Google's Official Google Blog: Using data to help prevent fraud

Google basically uses three steps to ensure that advertisers do not pay for invalid clicks or clicks that have no intent ( of converting into actual sales )

The three stages are: (1) proactive real-time filters, (2) proactive offline analysis, and (3) reactive investigations.

Google uses sits logs to detect any fraduent activity and these logs acts like detective agents constantly sniffing out suspicious behavior.. These Logs serve as a huge repository of data which are used to detect patterns, anomalous behavior, and other signals indicative of click fraud.

Every single click is analyzed for click fraud by real time filters.They pore over the millions of impressions and clicks -- as well as conversions -- over a longer time period. In combing through all this information, our team is looking for unusual behavior in hundreds of different data points.
IP addresses of users also serve as important focus points for analysing user patterns in clickthroughs.

IP addresses of computers clicking on ads are very useful data points. A simple use of IP addresses is determining the source location for traffic. Google analyses if the traffic is originating from one country or city? Is that normal for an ad of this type? Although we don't use this information to identify individuals, we look at these in aggregate and study patterns. This information is imperfect, but by analyzing a large volume of this data it is very helpful in helping to prevent fraud.

Google says that the number of invalid clicks fluctuate constantly but they average less than 10% of all clicks.

Our invalid clicks rate – the activity rate – has remained in the range of less than 10% of all clicks every quarter since we launched AdWords in 2002. At Google’s current revenue rate, every percentage point of invalid clicks we throw out represents over $100 million/year in potential revenue foregone.

Further Google points that that every email received from advertisers for click fraud complaints are acted upon very promptly.

Our Click Quality team investigates every inquiry we receive from advertisers who believe they may have been affected by undetected click fraud. Many of these cases are misunderstandings, but in most cases where malicious activity is found, the clicks have already been filtered out (and not charged for) by our real-time filters. Because of the broad operation of our proactive detection, the relatively rare cases we find of advertisers being affected by undetected click fraud constitute less than 0.02% of all clicks.

February 29, 2008

Google Paid Clicks Slow down

It seems that the search Giant Google's money making tool is nearing slow down along with other indicators in the US economy.

That was the conclusion earlier this week when Wall Street analysts scrutinized comScore numbers that showed a decline in Google's paid clicks business. But now, a new set of data points show a rather different conclusion.

According to The New York Times, search marketing firm SearchIgnite found that paid clicks were actually up 45.7 percent between Jan. 1 and Feb. 15. ComScore's numbers reported a 7 percent decline in paid clicks and an overall flattening out of the business in the year-over-year numbers

On Feb.26 the Internet giant's stock tumbled 4.7% after a research firm reported a decline in the number of clicks on the ads alongside Google's search results.

While display advertising continues to make up a substantial part of the online advertising pie.There has been an growing realization among internet advertisers that it makes much sense to pay publishers when an acquisition or sale has been made.

Google earns when users clicks on ads . Google adsense allows publishers to make money when visitors clicks on ads that are in turn is distributed by Google among its adwords partners. Thus Google makes money by buying inventory from advertisers (adwords program ) and selling it to publishers( adsense program)

Thus low clicks probably hurt Google more and ultimately Google runs the risk of its revenue model taking a beating .

A study, released on Feb. 12 by comScore, media agency Starcom USA, and the ad network Tacoda, owned by AOL (TWX). It found that just 6% of Web surfers account for more than 50% of all clicks on display ads, such as the rectangular banner ads that stretch across the top of many Web pages. In addition, most of these heavy clickers earn less than $40,000 a year, and they account for less than 15% of the actual shopping online. "What we have seen is that optimizing for [clicks] alone tends to get you an audience with a propensity to click," says Daniel Jaye, Tacoda's president.

Microsoft is also pushing beyond clicks. On Feb.25, the company unveiled an initiative that allows advertisers effectively to pay based on the number of people who watch a video, provide their e-mail address, or take some other desired action. "Basically we give our customers the ability to create these models to define what's important," says John Chandler, principal analyst at Atlas, part of Microsoft's ad network.

Of course, Google gets most of its revenues from clicks today. And it has no plans to move away from the model altogether. That's why investors were so spooked when comScore reported that clicks alongside Google's U.S. search ads declined 12% from the fourth quarter of last year. Google's stock is off 36% from its peak of $741.79 on Nov. 6. "What happens with Google will indicate what happens with the whole search [advertising] market," says David Hallerman, senior analyst at the research firm eMarketer.