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Google Releases Additionaly Click Fraud Investigation Information

March 6, 2007

A couple weeks ago, Google provided a list of common concerns and tips related to their inhouse Click Fraud Investigations. Late last week they provided an update on their 3 step process for dealing with Click Fraud, which are 1.real time filters 2. offline analysis and 3. reactive investigations. The interesting thing about this research is that most of the work is done proactively by Google, either through automatically filtering with algorithms (which supposedly catches a majority of the invalid clicks) or through your click quality adjustments that appear on your monthly statements. The last step is if an advertiser believes they are a further victim of Click Fraud, then they can file a complaint and Google conducts an investigation.
Now what are the breakdowns of these three steps of and how much click fraud is out there, Google estimates the first two steps is less than 10% of clicks are invalid and virtually all of thos are proactively detected. And the percentage that gets through their systems and potentially could be click fraud that they missed, less than .02%. Thats right less than .02%. Let me put that in perspective for you. If you have a $10,000/month budget less than $2 of that is click fraud. So your daily budget of $333/day is roughly $.07 of click fraud.
This begs the question, how many of you have clicked on a competitors ad to cost them a little bit, or even clicked on your own ad to increase your click through rate? Is that Click Fraud, yes to some extent, but according to Google, they know you did that and actually caught the click before it hit you or your competitors bill.