Click Fraud Network

The Click Fraud Network is a community of online advertisers, agencies and search providers working together to discuss ideas, share best practices, and work closely to develop industry standards and solutions to the click fraud problem. Click Fraud Network members receive free basic access to Click Forensics click fraud reporting system which provides campaign reports detailing click fraud threat level by keyword and search provider. Additionally, the Click Fraud Network publishes aggregate data using the Click Fraud Index. This information helps members identify trends and communicate with each other about this growing issue. Join today and help us work together to solve the click fraud problem.
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Profiting from Click Fraud

A day or so ago, Shuman Ghosemajumder from Google posted two blogs on his personal site questioning Click Forensics data, methodologies and motivation. While it is really unfortunate that we have to take time to address these issues, I will. It is unfortunate because Shuman and I have had numerous phone conversations, email exchanges and meetings over the past nine months and we discussed many of the topics he brought up in his post.  Let me begin…

1) Many third parties have not counted clicks properly
Click Forensics counts clicks properly. We do not count back clicks. We count page views correctly. As a matter of fact, we use click ID’s (including Google’s) and other methods to ensure that our reports are the most accurate in the industry.

2) Inflated click counts result in even more inflated “click fraud” estimates
Google calls them “invalid clicks.” Click fraud is a subsection of this category and does include malicious attacks, competitive clicks and affiliate fraud. Shuman has said on many occasions that Google does not charge for invalid clicks. This is a game of semantics. Our report focuses on what we call “high threat level clicks.” These are clicks that our rating engine and algorithm identified as being unwanted by the advertiser. These are clicks that advertisers should not be paying for and the reality is that in Q4 of 2006 14.2% of all clicks we scored fell into this category.

3) 
Even if they fixed those problems, they’re not actually measuring click fraud
Actually the truth is Click Forensics measures and reports on all suspicious click activity and attempted click fraud across search engines and their content network advertising channels. Google has admitted that is has not charged for some clicks. Shuman told Andy Beal that this number was .2% of all clicks.  Our advertisers (and Google’s) can see the number of clicks that they credited and it is far lower than the number of unwanted clicks search engines credit them for in their campaigns. As a matter of fact, many of the 3,000 advertiser members of the Click Fraud Network report that they have never been discounted more than 2 percent for the invalid clicks. It is clear search engines are not catching all bad click activity. Part of the reason is their lack of advertiser-side information and the difficulty in policing content networks alone.


4) Industry metrics are not necessarily the same as Google’s metrics
True.  Our industry metrics a representative of virtually every search provider large and small in the industry. This is why we have a statistically accurate view of the true rate of industry click fraud levels. We used to separate our click fraud figures by search engines tiers but stopped reporting this way this quarter because there is a growing disparity between individual search providers as to the click fraud levels. We didn’t think it was fair to lump the good with the bad so we will begin to report on individual providers later this year. The results may surprise you.

5) ROI on the content network is the same as it is on search
That is an interesting way to spin the story.  The fact is that content networks produce a higher amount of fraudulent and invalid click activity.  We reported that 19.2% of clicks coming from content networks are fraudulent and fall into the high threat category. I’m glad Google agrees with us on this one.  Its clear advertisers have been justified in their views on the click quality of content networks because the threat level is so high. We help advertisers identify publishers in the content networks that they should avoid. This approach actually helps improve the ROI on all content networks and gives advertisers peace of mind, thereby accelerating the growth of pay per click advertising.

Shuman’s first post ends with this, “
The key point here is not that their (Click Forensics) numbers are "too high". The point is that their data collection methods are inherently flawed and any resemblance their numbers could have to reality would be coincidental. Even so, given that they are not measuring click fraud, they apparently don't intend their numbers to reflect reality.”

 

At Click Forensics we stand by our numbers, our methodology, our people, our clients, our partners and the 3,000 plus members of the Click Fraud Network.  And we are not alone in defending our approach.   In March 2006, our methodology was examined by Dr. Tuzhilin, the same expert who examined Google's click fraud practices and wrote the report as part of the $90 million click fraud settlement case.  Dr. Tuzhilin said:

 

Click Forensics has good data and this is a source of their advantage over the search engines. My role is to work with them to refine the scoring methodology to improve accuracy. Their approach is to incorporate as much data as possible to improve accuracy. The search providers simply don't have enough data to have the most accurate approach."

 

The final false accusation from Shuman, responding to a post, charged us with releasing data to  “…promote flawed industry estimates in order to attract business.” 

 

Nothing could be further from the truth. 

 

We are not compensated based on how much fraud we find.  But each time a fraudulent click occurs and is missed by a search engine, they get paid for it.


Our goal is to continue to build a great company than helps advertisers ensure they get what they pay for in the tradition of Nielsen and Arbitron.  Google would do well to take a less confrontational and more cooperative approach embraced by their competitors.  That said, I look forward to discussing these issues with Shuman and continuing to work together to accelerate the growth of online advertising by fostering trust and accountability.

 

Tom Cuthbert

President and CEO

 

Published Sunday, February 04, 2007 10:57 PM by admin

Comments

 

shumans@gmail.com said:

Dear Tom,

Thank you for responding to my blog posts! I believe that open discussions are always the best way to resolve misunderstandings on technical issues. My blog posts covered errors we've seen at Google from a number of firms, not just Click Forensics. If my posts came across as only directed only at Click Forensics then I'm sorry for that. I definitely appreciate the feedback; I do believe that Google's points about reloads/back-buttons are important, but of course it's also important to hear about ways that we could work to make our communication even more clear for advertisers and people who are interested in this issue.

Here are the links to my posts for those who wish to review those as well:

http://shumans.com/articles/000048.php

http://shumans.com/articles/000049.php

Best wishes,

Shuman

March 28, 2007 1:58 PM
 

PPCandPCs said:

Why is it so hard to count clicks and come up with the same or similar answer?  My phone bill is detailed and simple to review but my billing reports from Yahoo and Google provide no detail and are very frustrating.

April 17, 2007 7:36 PM
 

iconnor said:

@PPCANDPCs - Excellent analogy. In a phone bill, each call can cost as little as 2c. However, in some keywords you can be paying $2 or more. I agree that you should see a break down with DATE/TIME/IP/TERM/COST at a minumum so you can validate it against your records.

April 21, 2007 6:12 AM
 

mdavis said:

Agreed, we need a click bill similar to a phone bill.  Can you imagine receiving a bill from your telephone provider which says you made 4,000 calls, owe them $15,000, and then they provide you with no detail on each click?  So, I wonder which search engine, Google or Yahoo, will provide me with my first detailed click bill?

April 21, 2007 3:45 PM
 

udigis said:

mdavis, your idea is great, by having such a bill, we'll be able to block lots of fraud clicks. And currently, we can only do that in the Apache server, using the .htaccess file to block IPs.

June 13, 2007 6:26 PM
 

nemat said:

I think I echo all of the other commenters when I say we need more transparency from the search engines.

Google have made small in-roads by adding invalid clicks metrics on account and campaign level reporting, but I think there is a bit further to go.

August 6, 2007 1:58 PM
 

smccoy@ait.com said:

As a responsible service provider Google should at least take the time to blacklist the known "dark places" on the web from its advertising network.

When Gmail is over run with spam or viral activity they defend it because it costs them money. When the affiliate networks are overrun with automated traffic or click armies they do nothing because they profit from it. The term for their lack of action is negliance and I'm sure enough discovery would provide evidence of that...

Keep their motto in mind: Do no evil!

September 25, 2007 2:24 PM
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