Click frauds rising, could Adsense and YPN act on time?



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Feb 27 2008
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Looking at how Google Inc.’s stock price performed after I closed my position yesterday, I was relieved. Not that I can always close my position(s) when the trade(s) was in the money as naturally the greed somehow will always whisper to me to stay on for better profit percentage. Boy! I was glad I locked the profit by taking the money off the table. As a trader sometime you need to be realistic of your trade’s position. You got to be sensitive to the market news, both macro and micro. The main reason why I hit the button yesterday was due to the poor click-through rate’s report. And logically after such a huge sell-off the technical rebound would follow, which happens today.

Anyway that trade was history but as a trader or investor one needs to remember the lesson learnt throughout the journey. You learn both when you made money as well as when you lose money. You gradually mature along the way and that’s how you go up to the next level. Now, talk about poor click-through rate do you know that one of the reasons Google Inc. implemented such a disastrous measure was to prevent accidental clicks? However it won’t be able to eliminate “intentional or fraud clicks”. And talking about fraud clicks do you know which country registers the highest fraud clicks and gave Google’s Adsense the biggest headache? It’s none other than India, the country that produce the most number of Information Technology (IT) intellectuals.

Click Fraud RateAccording to Click Forensics the overall industry average click fraud rate rose to 16.6 percent for fourth quarter 2007, up 14.2 percent for the same quarter in 2006. The average click fraud rate of PPC advertisements appearing on search engine content networks, including Google AdSense and the Yahoo Publisher Network, was 28.3 percent in Q4 2007 – up from 19.2 percent the same quarter in 2006. In fourth quarter 2007, India scored 4.3 percent click fraud while Germany and South Korea registered 3.9 and 3.7 percent respectively.

Click Fraud Highest from IndiaThe high click fraud from India could be explained in a simple way. India has been mass producing IT-literate graduates and the gap between the rich and poor is jaw-dropping. Basically it’s a lucrative market to pull in some articles, get Adsense approval and start making U.S. dollars. Convert it back into local currency and you potentially could live comfortably, if you don’t get caught by Google’s click fraud detection system. Hence, don’t be surprise if you heard of networks of people who perform “you click my ads and I click your ads” strategy in order to make good money. What better way to work from home, don’t you think?

If the trend continues (click fraud), both Google Adsense and Yahoo Publisher Network might need to find a better alternative to ensure online advertising is worthwhile. The next quarter of earning announcement from Google Inc. could shed some lights into the severity of existing advertising system.

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Comments

I used infolinks on my previous website and i want to use on my new website. can i use new website.
anurag chatap said it’s CPM is very low. he is right.
its CPM should be good so Google Adsense is the best revenue advertising program.
anyway thanks for giving nice information.

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