Thursday, June 25, 2009

CLick Fraud

The click FRAUD..
To understand what this elusive title is all about, we first need to understand the advertising model majority of search engines propose. To cite google as an example :
Google has the cleanest homepage, which understandably was created so as to give it a suave look, give a user friendly appearance and to make it quickly accessible. Unlike yahoo, it didn’t have a glut of flashy ads or several links to different features of the website. As business model of yahoo as a whole is to generate revenue by allowing user to stay on the page as much time as possible and understand and view its different features. Now coming back to google, it had one kosher intent, to dispense knowledge.
The search was free. No flashy ads on homepages. The main question arises that how google makes money. The money generating part comes in 2 forms, it has partnered with major internet sites like AOL.com, Yahoo.com and other huge players, whose search is powered by google which extracts huge revenues. Secondly the advertisement part ,much like television, google generates its major revenue from advertisements. Like on television major ad slots occur during any hit soap or sports event, likewise on google.
The search page is divided into 2 parts, 1. 2/3 of the page is divided into pure, free search results and 1/3 of the page is lineated by advertisements or what google calls SPONSERED LINKS. This feature is a cost-per-click model. The company, wishing to post ads on google bids for a price per click and ad is published besides relevant search content. E.g. I search for weather forecasts for monsoon. 2/3 page is filled with free searchresult and 1/3 is filled raincoat and umberella ads.
Now the company has to pay google for as many times as their ad is clicked. Not necessarily generating business. It is like window shopping. E.g. the company has bid for 5$ per click, and if their ad is clicked 20 times a day they have to pay flat 100$.
Now, here the real problem arises. Some businesses can’t do without advertising on the internet, as the dynamics of business change, it is inevitable to do advertising on the internet. Like law firms or money lending firms. The competitor can click on rival’s ads as many no. of times and the rival’s marketing cost substantially goes up as he has to pay as many no. of times as the ad is clicked. Or the advertising agency can click on the ads and generate an increase in its revenue and get more contracts.
This ambiguity of the nature of ethics, business and retarded cyber laws makes it even tougher to prove the fraudulence
The icing on the bullcrap is : if a software is generated which clicks the ads randomly and masks the IP address. It can never be proved a fraud. Moreover, google or yahoo are not highly vigil about their ads nor are advertising agencies are having proper resources to keep a track of what is happening with their internet ads. It is very easy to post ads on google and it is a matter of 15 mins. For your company to post ads.
It may not cause a huge chink in the search engine or marketing div. of the company’s armour. But it is an issue to be taken seriously..
Else, either we’ll make a lot of money by finding an answer to it or someone else will make a lot of money by CLICKING… click click… !!

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