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Pay Per Click fraud

Frequently seen in the pay-per-click advertising world, Pay Per Click fraud is an Internet crime that involves a computer or computer program imitating a real person and clicking on paid inclusion links without actually having any interest in the topic of the links. Click fraud is the subject of some controversy and increasing litigation due to the advertising networks being a key beneficiary of the fraud. The motive behind Pay Per Click fraud can be malicious, or to try to cheat the system to build a false following. An example of this is an unscrupulous company driving its competitor's overhead costs up or gaining click-through costs for a collaborating affiliate. Pay Per Click fraud not only effects the company that is paying for the paid inclusion, but also effects the results of such a campaign, diluting the results until it is pointless to participate in the pay per click marketing.

Non contracting parties

A secondary source of click fraud is non contracting parties, who are not part of any pay-per-click agreement. This type of fraud is even harder to police, because perpetrators generally cannot be sued for breach of contract or charged criminally with fraud. Examples of non contracting parties are:
  1. Competitors of advertisers

    : These parties may wish to harm a competitor who advertises in the same market by clicking on their ads. The perpetrators do not profit directly but force the advertiser to pay for irrelevant clicks, thus weakening or eliminating a source of competition.


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  1. Competitors of publishers

    : These persons may wish to frame a publisher. It is made to look as if the publisher is clicking on its own ads. The advertising network may then terminate the relationship. Many publishers rely exclusively on revenue from advertising and could be put out of business by such an attack.
  2. Other malicious intent

    : As with vandalism, there is an array of motives for wishing to cause harm to either an advertiser or a publisher, even by people who have nothing to gain financially. Motives include political and personal vendettas. These cases are often the hardest to deal with, since it is difficult to track down the culprit, and if found, there is little legal action that can be taken against them.
  3. Friends of the publisher

    : Sometimes upon learning a publisher profits from ads being clicked, a supporter of the publisher (like a fan, family member, political party supporter, charity patron or personal friend) will click on the ads to help. This can be considered patronage. However, this can backfire when the publisher (not the friend) is accused of click fraud.

Pay Per Click fraud harms publishers as well as advertisers, and there has been an enormous amount of collaboration to prevent this from happening between advertisers, publishers, and the court system. Advertising networks may try to stop fraud by all non contracting parties but often do not know which clicks are legitimate. Unlike fraud committed by the publisher, it is difficult to know who should pay when past click fraud is found. Publishers resent having to pay refunds for something that is not their fault. However, advertisers are adamant that they should not have to pay for phony clicks.

Fraud solutions

Proving click fraud can be very difficult, since it is hard to know who is behind a computer and what their intentions are. Often the best an advertising network can do is to identify which clicks are most likely fraudulent and not charge the account of the advertiser. Even more sophisticated means of detection and fraud solutions are used, but none are foolproof.

A number of companies are developing viable fraud solutions for click fraud identification and are developing intermediary relationships with advertising networks. Such fraud solutions fall into two categories:

  1. Forensic analysis of advertisers' web server log files.
    This analysis of the advertiser's web server data requires an in-depth look at the source and behavior of the traffic. As industry standard log files are used for the analysis, the data is verifiable by advertising networks. The problem with this fraud solutions approach is that it relies on the honesty of the middlemen in identifying Pay Per Click fraud.
  2. Third-party corroboration.
    Third parties offer web-based solutions that might involve placement of single-pixel images or Javascript on the advertiser's web pages and suitable tagging of the ads. The visitor may be presented with a cookie. Visitor information is then collected in a third-party data store and made available for download. The better offerings make it easy to highlight suspicious clicks, and they show the reasons for such a conclusion. Since an advertiser's log files can be tampered with, their accompaniment with corroborating data from a third party forms a more convincing body of evidence to present to the advertising network. However, the problem with third-party fraud solutions is that such solutions see only part of the traffic of the entire network. Hence, they can be less likely to identify patterns that span several advertisers. In addition, due to the limited amount of traffic they receive when compared to middlemen, they can be overly or less aggressive when judging traffic to be Pay Per Click fraud.

What is contextual advertising?

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