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How Click Fraud Affects Advertisers

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Let’s look a little bit closer into some of the ways that click fraud affects advertisers.
In addition to draining ad campaign accounts, click fraud can result in an increase in the cost per click for keywords.

This happens because many PPC search engines base keyword pricing on how popular a term is and how many people are competing for it.

Therefore, if click fraud is directed at a certain keyword, the cost of that keyword can increase for all advertisers, not just the particular competitor who may have been the target of the click fraud attack.

One notable case of click fraud affected an advertiser in a manner that few would have foreseen.

John Carreras, President of Impact Displays, Inc., had long been a proponent of online advertising, but he suspected that his competitors were clicking on his paid ads.

However, because he advertised so extensively across so many search engines, he decided the that problem was probably not large enough to justify the expense of analyzing his traffic logs in detail And, perhaps, he was just being a little “paranoid,” as Carreras himself says.

However, after returning from a large trade show a few years ago, he checked his PPC ads and discovered that he had only about half the usual number of clicks during the trade show timeframe.

Carreras found this disturbing enough to convince him that the reason for the decrease in his PPC clicks was likely due to the fact that his competitors were all at the trade show and thus not spending time clicking on his various ads.

Carreras responded a little bit differently than one might expect. Of course, this was before PPC search engines themselves were actively involved ill pursuing click fraud, so Carreras decided to develop software designed to identify click fraud.

After two years of development, he released a third-party tool called WhosClickingWhoTM, which remain, one of the top tools available to advertisers today to combat click fraud.

As for Carreras’ own ad campaigns, once he put his software into practice on his own ads, his PPC ad campaign expenditures went down 20%, while his sales remained virtually the same.

Few advertisers have either the resources or the zeal to combat click fraud in the way that Carreras did, but many have benefited from his experience and the resulting software lie developed.

Other tools to combat click fraud have been developed since, we’ll discuss some of them later in a post.
Keywords: Click Fraud, Advertisers, ad campaign accounts,

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