Click Fraud Less Than Expected, Monitoring Firm Says - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News

Click Fraud Less Than Expected, Monitoring Firm Says

The average click-fraud rate across search-advertising industries is around 14%, substantially less than the expected 20% to 35%, according to a new report.

Click fraud that inflates the cost of online advertising occurs at a rate that's lower that expected among advertisers, a monitoring firm said Monday.

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, Click Forensics said in releasing its first Click Fraud Index, a service the company launched in March.

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.

"One of the most interesting discoveries from the first round of data reported by the Click Fraud Index is the lower-than-expected rate of overall industry click fraud," Tom Cuthbert, president and chief executive of Click Forensics, said in a statement. "People in the industry have previously pegged the click fraud rate at anywhere from 20-35 percent. However, we've found that the level is actually on the lower end of those estimates."

The click-fraud monitoring firm, which claims to have more than 400 advertisers using its service, said more than 90 percent of click fraud originated within the United States and Canada. Outside those two countries, China and France were the biggest originators of click fraud.

The average cost per search term in the first quarter was $4.75 for the top key terms across the five biggest search-advertising industries: retail, financial services, health and fitness, technology and entertainment, Click Forensics said.

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.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
The State of Cloud Computing - Fall 2020
The State of Cloud Computing - Fall 2020
Download this report to compare how cloud usage and spending patterns have changed in 2020, and how respondents think they'll evolve over the next two years.
News
Top 10 Data and Analytics Trends for 2021
Jessica Davis, Senior Editor, Enterprise Apps,  11/13/2020
Commentary
Where Cloud Spending Might Grow in 2021 and Post-Pandemic
Joao-Pierre S. Ruth, Senior Writer,  11/19/2020
Slideshows
The Ever-Expanding List of C-Level Technology Positions
Cynthia Harvey, Freelance Journalist, InformationWeek,  11/10/2020
Register for InformationWeek Newsletters
Video
Current Issue
Why Chatbots Are So Popular Right Now
In this IT Trend Report, you will learn more about why chatbots are gaining traction within businesses, particularly while a pandemic is impacting the world.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll