Although many of us here at BloggingStocks.com have written before on the threat click fraud is having -- and will continue to have -- on Google and others like Yahoo! and Microsoft, is Google doing anything about it? It's paid lip service so far regarding the advertiser and investor community, vaguely stating that it has systems and artificially-intelligent computer programs in place to weed out click fraud.But, non of this talk has quenched fears that click fraud -- which can be hard to measure -- is actually becoming worse. My belief is that click fraud is most likely one of the largest threats to Google at this time. To hell with the competitors -- Google's own short-sightedness here could be a major problem. The more popular an Internet destination and tool becomes, the more strongly the fraudsters and criminals come out of the woodwork wanting to take a free ride into a cash-making world of their own.
With the percentages mentioned in this source story, and with the sad statistic that the higher-priced clicks ($2+) being targeted by default, is Google possibly due to advertiser drop-out if click fraud continues to grow? That would be devastating to Google's search advertising revenue, which is funding the entire company right now. Unless advertisers see hefty returns on Google advertising even with click fraud happening to their ads, it does not make sense to continue throwing money down the Internet drain. The click fraud light is shining on Google -- and GOOG shareholders should be wary of the light that could shine on your holdings.



Reader Comments (Page 1 of 1)
7-18-2006 @ 2:41PM
l muso said...
I often wonder if this guy is short GOOG. His articles generaly have a negative cast and click fraud story is as old as the hills. Who is he to advise Google as to what to do and at the same time warn stockholders. He has a forum here for his personal opinions and he is abusing it. How could he possibly know what a secretive org like goog is doing about click fraud. I think this guy is a frustrated daddy looking for children to guide and advise. To bad its only his opinon not necessarily fact.
Leonardo
7-18-2006 @ 2:54PM
Brian said...
Hi Leonardo,
You could not be more incorrect here. I am not short on GOOG at all. I am a large user of Google services but I have severe concerns about click fraud problems for Google, Yahoo! and others -- and I have seen little to mo movement on the companies to confront this huge issue. Sure, ti is "old as the hills" -- that *does not* mean it is not a large problem that is becoming larger ever year. As you state I am "abusing something" -- that is also not correct. It is my opinion -- and I respect differing ones as well. I firmly believe click fraud is one of Google's largest issues that has yet to be fully confronted, and the company rarely talks about in in-depth. This is why I have written many posts on it -- why hasn't Google done more to quench the click fraud fear?
Thanks for your comments -- they are appreciated.
7-18-2006 @ 3:31PM
l muso said...
Your wrong. "Click fraud fear" is in your mind. Goog has settled 100's upon 100's of click fraud cases when a pattern has been indicated by customers or their algorymthims[sic]. Why is click fraud fear so prevelent? Because it only exits in your mind and a few people who may have been hurt or have issues with GOOG for other reasons.
Answer this, if "click fraud fear" is so widespread , and goog receives 99% of its revenue from clicks, how come they have such Huge sequential quarterly revenue and customer gains? Seems only people with an agenda are worried. Admit the fallacy of your statement or correct your article to indicate revenue and customer gains indicate people apparently don't care.
7-18-2006 @ 3:42PM
Brian said...
"Click Fraud Fear" is in my mind? I don't think so. Read the source article (Click on the "Read" link at the bottom of the post) and also see this link:
http://www.searchenginewatch.com/showPage.html?page=3594751
I doubt you can call click fraud "mental fear" once you've seen the industry heavyweights voice in on the subject. Huge quarterly revenue gains and such aren't, yet, being affected by this issue, as it is not understood or reported by the mainstream media.
As always, thank you for your comments.
7-18-2006 @ 5:40PM
w.m.bush said...
I am really completely unaware of "click fraud", but I was pleased to see the previous commentators to "bo-bo" the comments of the "sky is falling" "analyst" (if he could be called that).
It is difficult to fathom the realities of what GOOGLE has become in such a short term. I guess it is the pesimistic attitude that has crept into everyone's thinking --- but perhaps there is some justification in the hopes that an organization is sy=ufficiently different to challenge the growth of an unknown - IBM in the 30's and 40's - even the 50's to imagine that foreward thinking AND ACTING people can rise above the complacent mold that we have become accoustomed to.
My only suggestion to these very imaginative people pulling the strings at GOOGLE is to split the stock atleast 10 to 1 and let the "little guys" in for a chance at the "brass ring"
7-18-2006 @ 5:40PM
w.m.bush said...
I am really completely unaware of "click fraud", but I was pleased to see the previous commentators to "bo-bo" the comments of the "sky is falling" "analyst" (if he could be called that).
It is difficult to fathom the realities of what GOOGLE has become in such a short term. I guess it is the pesimistic attitude that has crept into everyone's thinking --- but perhaps there is some justification in the hopes that an organization is sy=ufficiently different to challenge the growth of an unknown - IBM in the 30's and 40's - even the 50's to imagine that foreward thinking AND ACTING people can rise above the complacent mold that we have become accoustomed to.
My only suggestion to these very imaginative people pulling the strings at GOOGLE is to split the stock atleast 10 to 1 and let the "little guys" in for a chance at the "brass ring"
7-18-2006 @ 6:02PM
l muso said...
I am not going to click anywhere. I don't have to. A quick rewiew of your blog headlines shows a stong negative tilt. Definately a "sky is falling" bias. Lets say 10,000 people are concerned or have experienced click fraud. That's plenty and they could make a lot of noise. Goog has 5-10 million customers. So 1 out 500+ sounds prety good when you consider you can't get two people in this country to agree on the same anything.
As I said. Daddy is trying to warn his children about the evils of the world. Trouble is, not that they are not listening, theres no one there.
7-19-2006 @ 10:02AM
steve hayes said...
we are certain that we suffered from click fraud. If you hassle long enough you will get some money back
What bugs me is that google/yahoo wont give you the tools to tell which website your clicks are coming from - that would more or less solve the problem overnight - If we got a load of clicks from worthlesswebsite.com we could alert google/yahoo, they could do something about it and problem solved
Steve