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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 appropriate measures to guard against fraudulent clicks resulting in unwarranted advertising and marketing costs. Click Defense claims it has lost over $five million to click fraud.

Click Fraud

Click fraud is a term with a special which means on the Internet. It refers to the deliberate clicking of spend-per-click advertisements by users that have no intent of truly making a buy. It is widespread knowledge that unethical businesses will set up click centers oversees exactly where people are paid nominal wages to click on particular advertisements. Alternatively, companies will use programs called click bots that automatically search out ads and do the same factor. The end result, of course, is a bevy of clicks that drain advertising budgets.

Google claims it takes suitable precautionary measures. This claim, nevertheless, is usually met with a snicker since the sole supply of revenues for Google is marketing. This causes an inherent conflict of interest because Google needs to maximize clicks to generate revenues. As a publicly traded firm, Google is under pressure to continually show improved earnings. Taking all of this into account, one particular need to wonder how challenging Google works to limit fraudulent clicks. If you have employed the content material search aspect of Google Adwords, the incredible poor conversion prices certainly have to raise doubts in your mind.

Click Fraud Percentages

Neither Google, Overture nor any other search engine has been prepared to publish click fraud prices for their paid marketing program. Hints have been provided regarding a price of 20 %. Active advertisers know, however, the percentages can be significantly higher depending on the competitiveness of the keywords in question. Click Defense, the Plaintiff in the lawsuit, is claiming a click fraud rate of 38 percent.

Will This Effect PPC?

The lawsuit against Google was inevitable. Every internet site making use of Adwords is conscious of the issue with click fraud. Frankly, it is a difficulty with each and every spend-per-click search engine even though our encounter has been greater with Overture.

So, will this lawsuit force the search engines to clean up their act? Its difficult to say, but there should be one particular definite benefit. As element of the lawsuit, Google may possibly be forced to reveal the true click fraud percentages occurring in Adwords. If Google moves to rapidly settle the case, you must take it as an indication it desires to hold the prices confidential. This, of course, will mean the click fraud percentages are higher.

You must watch the progress of this lawsuit if you use spend-per-click search engines to promote your site. Some quite interesting info must be revealed. Regardless of the outcome, click fraud is just an additional purpose to pursue search engine optimization methods. read more