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On June 24, 2005, a lawsuit was filed against Google for alleged click fraud on the Adwords spend-per-click system. The Plaintiff, Click Defense, claims Google failed to enact appropriate measures to guard against fraudulent clicks resulting in unwarranted marketing charges. Click Defense claims it has lost more than $5 million to click fraud.

Click Fraud

Click fraud is a term with a special meaning on the Internet. It refers to the deliberate clicking of pay-per-click ads by users that have no intent of really producing a acquire. It is frequent understanding that unethical firms will set up click centers oversees exactly where people are paid nominal wages to click on certain advertisements. Alternatively, organizations will use programs called click bots that automatically search out advertisements and do the same thing. The end outcome, of course, is a bevy of clicks that drain advertising budgets.

Google claims it requires suitable precautionary measures. This claim, nevertheless, is usually met with a snicker given 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 create revenues. As a publicly traded business, Google is below pressure to continually show elevated earnings. Taking all of this into account, a single must wonder how hard Google works to limit fraudulent clicks. If you have employed the content material search aspect of Google Adwords, the extraordinary poor conversion rates undoubtedly must raise doubts in your thoughts.

Click Fraud Percentages

Neither Google, Overture nor any other search engine has been prepared to publish click fraud rates for their paid marketing system. Hints have been supplied with regards to a rate of 20 %. Active advertisers know, even so, the percentages can be significantly larger based on the competitiveness of the keywords in question. Click Defense, the Plaintiff in the lawsuit, is claiming a click fraud price of 38 percent.

Will This Influence PPC?

The lawsuit against Google was inevitable. Each and every internet site using Adwords is aware of the problem with click fraud. Frankly, it is a difficulty with each pay-per-click search engine although 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 advantage. As element of the lawsuit, Google may be forced to reveal the correct click fraud percentages occurring in Adwords. If Google moves to rapidly settle the case, you must take it as an indication it wants to maintain the prices confidential. This, of course, will mean the click fraud percentages are high.

You ought to watch the progress of this lawsuit if you use pay-per-click search engines to market your site. Some quite exciting data should be revealed. Regardless of the outcome, click fraud is just yet another explanation to pursue search engine optimization approaches. read more