Click fraud comes in two major forms: competitive and network. The former is when a competitor clicks on a business's ad to drive up the cost of the advertisement, and the latter is when a third-party site hosting the ad manufactures phony clicks in order to get more money from the search engine.
Click fraud has become a hot topic and a fear of many online advertisers because of the popularity of the pay-per-click advertising model and the already increasing prices due to competition.
Click fraud Index is a company that monitors click fraud and they discovered in their research that click fraud numbers thought to be 20% to 35% were greatly exaggerated. The average click-fraud rate across search-advertising industries is 13.7 percent, which is substantially less than the industry-expected 20 percent to 35 percent. The firm also reported that click fraud was far less on tier one search providers, such as Yahoo and Google, than on tier two or tier three providers. The first category had a rate of 12.1 percent, while the remaining two were 21.3 percent and 29.8 percent, respectively.
Read the full article: http://www.techweb.com/wire/ebiz/186700511
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