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The Death of Click-Fraud Hype

Posted on 7.26.2006
This should make click fraud tracking nearly obsolete. Google yesterday announced the launch of a new AdWords feature which gives advertisers some tangible data regarding invalid click activity within their advertising account. The faux clicks reported are filtered in real time which means that these are clicks which never result in a debit from advertisers account. Advertisers will also likely see noticeable increases in their invalid click reports when publishers are terminated from the AdSense program.

So how does this produce the death of click-fraud hype? Well, it probably will not in and of itself but what it will most likely do is force second and third tier pay per click providers to be more accountable for the quality of the traffic they send to advertisers. As a result, advertisers will be more informed on what produces a sustainable return on investment and at what bid price.

In the next few months I think you will start to see niche advertisersin competitive industries sharing data to determine what is most appealing (and profitable) to the "teams of click-fraudsters" and then you'll see a grand lowering of bids across the entire online advertising network to remove themselves from the "heat of the kitchen".

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