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 Google AdWords Click Fraud
Volume:3 Issue:2 - March 2008
Google ads have become a common way for many
clinics to advertise on the internet. Our clients often ask me about
the effectiveness and reliability of Google and other sponsored listings.
Google has been aware of click fraud as far back as late 2004 when
Google's CFO (Chief Financial Officer) George Reyes stated that click
fraud "threatens our business model" - See
full story on CNN's website. Though reports vary as to the proportion
of clicks that are fraudulent, today there is widespread consensus
that a significant percentage of clicks are in fact fraudulent or
"unintentional"!; Google estimates these false clicks to be less than
2% while some consumer and industry watchdog groups believe it to
be rampant. What makes click fraud perpetrators particularly unrelenting
is the ease with which the system can be abused. Google AdWords are
still dependent, at least in part, on an honor system and as such
remain open to abuse.
Understanding click fraud is the first step towards protecting yourself.
Understand Click Fraud
Click fraud occurs when your sponsored listing
on Google is clicked by people or automated computer scripts - we'll
call them robots - that have no interest in and no intention of purchasing
your services.
There are two primary ways in which your advertising money can potentially
be wasted.
- I am often asked "can my competitors repeatedly click on my Google
ad?" the answer is yes and you can bet to be billed at least for
the first click every time a competitor clicks your ad. Google claims
to have safeguards in place to prevent repeated clicks from the
same computer at the same time. This type of click fraud is more
common in the retail sector and not as common in professional industries
such as ours.
- The other and far more costly means by which you can become victimized
is when your ads are delivered on third party websites that gain
a commission from Google every time your ads are clicked on their
websites. Organized "cyber gangs", operating with impunity, put
up websites known as "ad farms" on which they deliver Google ads
and then proceed to click on ads listed on their own websites and
cash in a percentage of the money that you pay Google with each
click. Fraudsters write sophisticated algorithms of their own to
fool Google's servers into thinking that the ads are being clicked
by real people. In this way a single robot unleashed on the internet
can click on hundreds of ads and line the pockets of its composers
all the while your account is getting billed by Google. This type
of abuse is estimated to cost AdWord clients untold millions of
dollars annually and is on the rise.
How to Protect Yourself
The best line of defense against falling victim
to click fraud is having the right information.
- Opt out of Google's "Content Network" - Know where you ads are being displayed. Google AdWord account
management panel allows you to deselect your ads from appearing
on Google's Content Network. Being part of Google's Content Network
means that your ads will be displayed on third party websites -
sounds like a good thing on the surface. However, despite the name,
the majority of websites on the Content Network actually have no
content whatsoever - just pages upon pages of Google ads like yours-
and are thus not attractive to website visitors. Considering this
tidbit, it quickly becomes apparent that being part of the Content
Network brings little to no additional visitors while leaving you
open to offending websites profiting from clicking your ads on their
own sites and taking the commissions from Google. For this reason,
we recommend that you opt out of Google’s Content Network.
- Analyze Your Click Through Rate (CTR) - Keep
records of your conversion rates. For example if your Google Ads'
CTR rises by ten percent this month, you should expect a proportional
increase in the volume of consultations performed. This is another
reason why tracking your office phone call and consultation conversion
rates are so important.
- Have a Balanced Online Marketing Mix - Don't
rely solely upon Google ads. Hedge your bets by investing some of
your advertising dollars in website
optimization and email marketing.
Remember fraudulent clicks not only waste your money tied up in
sponsored advertising, but will also lead to booking fewer consults
as a direct result.
- Manage Your Own AdWord Campaign - be wary of
companies that offer to manage your Google Ad campaigns and promise
to deliver a given click through rate.
Where Does Google Stand?
Google has come a long way by finally admitting
that click fraud exists and continues to claim that fraudulent clicks
make up only a small portion of the business and that it continues to
beef up its antifraud measures as well as kicking abusers off the system.
Google, however, is stuck between the proverbial rock and a hard place.
On the one hand the consumer wants complete transparency as to how Google
is preventing click fraud, and on the other hand fraudsters will use
any information released on the topic to create robots that can beat
Google's click fraud protection algorithms. Recently, Google took another
step by allowing advertisers track the number of clicks that appear
to be "unintentional" or the potential result of competitors attempts
to drive up advertising costs. This was done with the hopes to suppress
complaints that the company is unclear about its antifraud activities,
but fell short of satisfying critics who require third party verifications
that Google is refunding all invalid clicks back to the advertisers
- See
full story on Business Week's website. As of now, Google does not
permit third-party auditing of their billing and payment system with
regards to their AdWord and AdSense programs.
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