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Click Fraud Climbing; Social ‘Nets Partially Immune

Posted on 7.20.2010

The overall click fraud rate is slowly trending higher over the past several quarters according to Click Forensics.

The overall industry average click fraud rate was 18.6 percent. That’s up from the 17.4 percent reported for Q1 2010 and the 12.7 percent rate reported for Q2 2009. In Q2 2010, the countries outside North America with significant CPC traffic producing the greatest volume of click fraud were Singapore, Pakistan, Japan, Ukraine and China respectively.

“Over the past several quarters, we’ve seen the overall click fraud rate slowly trending higher,” said Paul Pellman, CEO of Click Forensics. “The main reasons appear to be the continued sophistication of botnets and malware prevalent in the fast-growing search marketing space. We advise online marketers to be watchful of their campaigns as they spend more on search advertising in the coming quarters.”

It’s not all bad news however. Click Forensics study of campaigns from a cross-section of advertisers and third-party ad networks showed traffic from leading social networking sites, including MySpace, Facebook, Twitter, and LinkedIn, to have an average overall click fraud rate of 11.5 percent, significantly lower than the industry average.

The takeaway from the study might just be that advertising on social networks will lessen the chance of click fraud on your campaigns. While one could probably attribute that to the still relatively low adoption rate of advertising on these destinations, it might also be related to the fact that social networks don't have the affiliate marketers profiting from elicit clicks.


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