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On June 24, 2005, a lawsuit was filed against Google for alleged click fraud on the Adwords spend-per-click plan. The Plaintiff, Click Defense, claims Google failed to enact acceptable measures to guard against fraudulent clicks resulting in unwarranted marketing and advertising fees. Click Defense claims it has lost over $five million to click fraud.

Click Fraud

Click fraud is a term with a unique meaning on the Web. It refers to the deliberate clicking of spend-per-click advertisements by customers that have no intent of actually creating a buy. It is frequent knowledge that unethical companies will set up click centers oversees where men and women are paid nominal wages to click on certain ads. Alternatively, organizations will use applications called click bots that automatically search out ads and do the exact same issue. The end outcome, of course, is a bevy of clicks that drain marketing budgets.

Google claims it requires suitable precautionary measures. This claim, however, is frequently met with a snicker considering that the sole supply of revenues for Google is marketing. This causes an inherent conflict of interest given that Google needs to maximize clicks to produce revenues. As a publicly traded firm, Google is under pressure to continually show enhanced profits. Taking all of this into account, one particular have to wonder how challenging Google performs to limit fraudulent clicks. If you have utilized the content search aspect of Google Adwords, the extraordinary poor conversion rates undoubtedly must raise doubts in your mind.

Click Fraud Percentages

Neither Google, Overture nor any other search engine has been willing to publish click fraud rates for their paid advertising plan. Hints have been provided with regards to a price of 20 %. Active advertisers know, nonetheless, the percentages can be significantly larger depending on the competitiveness of the key phrases in question. Click Defense, the Plaintiff in the lawsuit, is claiming a click fraud rate of 38 %.

Will This Impact PPC?

The lawsuit against Google was inevitable. Each site using Adwords is aware of the difficulty with click fraud. Frankly, it is a dilemma with each pay-per-click search engine despite the fact that our encounter has been better with Overture.

So, will this lawsuit force the search engines to clean up their act? Its tough to say, but there ought to be one particular definite benefit. As component of the lawsuit, Google could be forced to reveal the accurate click fraud percentages occurring in Adwords. If Google moves to swiftly settle the case, you ought to take it as an indication it wants to keep the rates confidential. This, of course, will mean the click fraud percentages are higher.

You ought to watch the progress of this lawsuit if you use spend-per-click search engines to market your internet site. Some really intriguing information must be revealed. Regardless of the outcome, click fraud is just an additional explanation to pursue search engine optimization methods. read more