Jul. 6th, 2006

Most web advertisers hit with online fraud. New study marks bogus clicks as $1.3bn problem.

The latest estimate for click fraud indicates taht more than $1.3 billion of keyword advertising sales are fake, according to a study released yesterday from researchers Outsell (the full study is $495).

Highlights (as reported by SFgate July 5, 2006):

–  14.6% of clicks are fake.
– 75% of advertisers have been impacted at least once (One wonders if those who say they haven’t probably are simply unaware of it).
– Nearly a third of advertisers have reduced or stopped spending on click-based advertising. An additional 10% intend to curtail spending.

"Outsell’s survey was based on the responses of 407 online advertisers representing a cross-section of U.S. business. Their spending ranged from several thousand dollars online annually to more than $10 million". SFgate.

Outsell cleverly heralds their reports as the beginning of the "Don’t ask, don’t tell" era in keyword advertising.  Its clear this issue is going to be a major headache for the search engines.

Mortablog readers are reminded of our post "BlackFoot calls time out on click fraud."

The opinions expressed in MortaBlog are not necessarily those of the author or anyone else at the Mortar
for that matter.  Just who owns them is kind of unclear really.  If you
do find someone who will own up to them for sure, let us know.


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