Google Seeks to Prevent Advertising "Click Fraud"

July 17, 2006


Internet giant Google, Inc. is working on ways to prevent the growing practice in online advertising of what is known as ‘click fraud’. The practice takes two different forms – one takes place on a website where Google has placed an advertisement, agreeing to pay the website owner fees based on the number of ‘clicks’ on the advertisement by visitors to that site. The fraud takes place when the site owner repeated clicks (manually or using an automated computer program) on the advertisement to increase the amount Google must pay in advertising fees). The second form occurs with respect to sponsored ads on Google’s site – competitors of the advertising companies set up automated click programs to increase the competitor’s advertising fees to Google. Among other options, Google is considering changing its advertising fee structure to require more than a just a click (i.e., a purchase or other activity) that would link the activity to an actual or potential customer. For an article with additional information, go to:

http://www.wired.com/news/columns/0,71370-0.html?tw=wn_index_17

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