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SEARCH ENGINE NEWS

Google Slapped with Click Fraud Lawsuit
By: Terri Wells
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  • Rating: 3 stars3 stars3 stars3 stars3 stars / 16
    2005-07-06

    Table of Contents:
  • Google Slapped with Click Fraud Lawsuit
  • A Closer Look
  • So What’s Really Going on Here?
  • Changes Needed?

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    Google Slapped with Click Fraud Lawsuit - Changes Needed?


    (Page 4 of 4 )

    Google spokesperson Mike Mayzel stated that “We believe the suit is without merit, and we will defend ourselves against it vigorously.” Click Defense begs to differ, stating in its lawsuit that click fraud on Google accounts for up to 38 percent of clicks. “Google knows…that click fraud is rampant in its AdWords program, and that the advertisements it sold and sells…are worth significantly less than the amount…bid for key words.” Who is right?

    The problem is that it is difficult to know who is right. Again, quoting Lee, “No one has fully defined when a click is `fraudulent’ versus simply a click from a poor quality source. So it is difficult to know if the firm initiating the lawsuit…truly believes the fraud problem to be as big a deal as stated, or if they are just using the legal action for public relations.”

    With these kinds of problems, one wonders whether it is time to find a different online advertising model, something that may be less susceptible to fraud. This would not be easy; pay-per-click ads have been around for several years now, which makes them well-established in the world of the Internet. Perhaps a wholesale change would not be necessary, however. It may be technologically possible to give advertisers more control over what locations they accept clicks from, as a first step.

    I am not a technology wizard, nor am I a fan of lawsuits. But it seems to me that the solution to this problem is more likely to be found in the computer room than the courtroom.


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       · My "Point and Counterpoint":Point : Publicity stunt? With the growing hype on...
       · Thank you for your insights! I think it will be interesting to see how this...
       · "Click Defense ... stat[es] in its lawsuit that click fraud on Google accounts for...
       · Google itself has sued click fraud perpetrators before, so it might have been open...
       · I have wondered from time to time why no one from the academic community has looked...
       · It could be that the academic community hasn't gotten more involved because they...
       · You both raise good points. I could see an academic study being funded if a lot of...
       · What do you think would be more valuable as a research study on click fraud?a) A...
       · As research studies, they'd both be useful, but for different purposes. I think the...
       · I suspected the second type of research study would be more valuable. Problem is,...
       · Since the adword markets are free, and Google has no monopoly, there is no need for...
       · I figured the data would not be easy to get. That's why I noted in an earlier...
       · Oh, I'm not suggesting government regulation; I'd much rather see a free market,...
       · Every system is perfectly designed to produce what it is producing. I am not...
       · I'm not disagreeing with you; in fact, I definitely agree that the search engine...
       · Amen to that!
       · Click fraud is publicly available knowledge, but not necessarily common. I know...
       · I'd thought click fraud has been receiving pretty good coverage in the press lately,...
       · Sure, click fraud has been getting reasonable coverage in the media. The question...
       · You raise some excellent points; I remember the EULA cash reward (and yes, I think...
       · The interesting part about this is that Google has won several judgements against...
       · Perhaps Bill Gates of Microsoft could redeem his recently damaged...
       · You are correct, but I contend that there will be an automatic correction. Because...
       · I appreciate your response but I must tell you that the Fraud counts on Yahoo are...
       · <<[i]Since they both know that click fraud is a minimum of 20% of anyone's ad...
       · For buyers to "sober up," though, they need other viable options. Will buyers start...
       · You do know that Yahoo owns at least 7% of Google, right? They also were given the...
       · I have been a long time advertiser with google and for the most part considered...
       · Any updates on the company you mentioned as "developing something that would all but...
       · Nothing that I've seen that has hit the radar of the press very hard yet. I've heard...
     

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