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HotTopics: Click Fraud Reaches $1.3 Billion, Dictates End Of “Don’t Ask, Don’t” Tell Era

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Author: Chuck Richard, Vice President & Lead Analyst

Outsell estimates click fraud is a $1.3 billion problem affecting publishers, advertisers, and Google, Yahoo!, and MSN (GYM). This level of fraud wouldn't be tolerated in other business services, and it won't go away on its own. In this HotTopics you will:

- Learn how click fraud takes advantage of the pay-per-click model

- Discover the true magnitude of the click fraud problem

- Understand the key drivers behind click fraud

- Get Outsell's essential actions for tracking and addressing the problem, plus accelerating development of pay-for-performance ad modelsIn researching this HotTopics, Outsell fielded a Web-based study in May 2006 of 407 advertisers from a cross-section of companies who control just under $1 billion of advertising spending.


Pub Date: June 29, 2006
Pages: 27
Format: PDF Application_pdf

We provide a link to download a PDF at the end of the purchase process.

Table of Contents

  • Why This Topic?
  • Methodology
    1. Demographic Profile of Advertisers
  • Key Drivers Creating a $1.3 Billion Problem
    1. Over One-Third of Advertisers Reducing or Planning to Reduce PPC Spending
    2. On Average, 14.6 Percent of Clicks Are Fraudulent
    3. Adding up the Elements of the $1.3 Billion U.S. Click Fraud Problem
  • Danger Signs in the Perceptions of Click Fraud
  • What's Being Done About Click Fraud Isn't Enough
    1. What GYM Is Doing About Click Fraud
    2. Seven Percent of Advertisers File for Refunds
    3. Third-Party Activities to Combat Click Fraud
    4. Advertisers' Use of Click-Fraud Services
    5. Increasing Use of Pay for Conversion - Cost per Action
    6. Advertisers' Ratings of Outsell's Proposed Click-Fraud Reduction Measures
  • Outsell's List of Essential Actions
  • Companies Mentioned in This HotTopics
  • - Ask.com
  • - eBay
  • - Google
  • - Hitwise
  • - Interactive Advertising Bureau (IAB)
  • - MIVA
  • - MSN
  • - Net Applications
  • - Omniture
  • - Snap.com
  • - Tacoda Systems
  • - ValidClick
  • - ValueClick
  • - WebGuerrilla
  • - Yahoo!