Googe’s Click Fraud Cost May Rise
I have to put together a click fraud analysis for one of my clients this weekend (I’ll use Keywordmax) but even as I do this I get news that the 90 million Google Click Fraud settlement is in jeopardy according to MarketingShift.
Google’s paltry $90 million settlement of a class action click fraud suit could be in danger. A lawsuit has been filed to block the settlement, which enriches the lawyers by $30 million but only gives $60 million in account credit - meaning zero cash — to advertisers who paid for bogus clicks.
The settlement amount was miniscule compared to most estimates of the click fraud damage, so this is no surprise. But the longer Google waits to quash this irritant, the more it may wind up costing them in PR and customers.
Found via BetaNews.
Using Keywordmax Click Auditor I can determine clicks that are close together coming from the same ip address (I usually choose those within a couple of minutes) that have the same exact or a similar query. Once I collect those records, I further analyze them and eliminate behavior that suggests it’s not click fraud (ie: a search on office furniture from NYC Board of Education that focuses on desks, school desks, secondary school desks and high school desks within 1 minute is probably not click fraud - it’s probably just someone looking for data).
Now, if we’re talking about 30 million of the 90 million in settlement money going to lawyers we’re almost down to no money for click fraud - given how much click fraud is being reported or estimated to be happening!
Instead of 60 million for victims of click fraud I’d like to see 600 million.
Nobody mentions the publishers not getting paid for these “fraudulent” clicks. The harder you press Google to count only “real” clicks, the more you drive away publishers. And let’s face it–counting clicks is subjective stuff. But it won’t matter. Because the market determines what an advertiser will pay!
Advertisers get a good enough deal through Google already–they shouldn’t complain. When you advertise with Google Adsense, your ad is seen by *thousands* of people. Most often publishers get NOTHING for this, unless someone actually clicks an ad. This is a fantastic deal for advertisers, and it won’t last forever. Top publishers get paid up front, regardless of ad performance.
There is risk involved–advertisers know this! No ad is guaranteed to sell anything!
If advertisers get too greedy, publishers will move on to what pays better. Advertisers will eventually pay (up front) for all those impressions that they got for free with Google. What they don’t realize is that Google is on their side. As rates go through the roof, AdBrite and others will make these advertisers wish they had kissed Google’s butt.