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Click Fraud
There are a myriad of approaches companies use to perform click fraud, ranging from the heavily manual-based to the completely automated. The intent of this analysis is to explain what click fraud is and its impact on internet advertising. Click fraud began when the business models of websites and online advertising businesses charged advertisers for every click a potential customer had on an advertisement or promoted link (Midha, 2009). Unethical online advertising businesses have been caught inflating the number of advertisements that have been clicked on to deliberately drive up what their advertiser customers owe them (Wilbur, Zhu, 2009). This has come so commonplace that there is a continual stream of litigation and lawsuits that allege various online advertising networks engage in this practice to gain greater profits from customers (Midha, 2009). From the simple manually-based click-throughs of ads to the highly complex use of bots and automated scripting techniques, click fraud is...
The long-term ramifications of click fraud include the undermining of the credibility of online advertising as one of many channels businesses rely on to promote their products and services. It is the lost credibility and trust in internet advertising that leads to literally billions of dollars in lost revenue (Midha, 2009). Click fraud over the long-term erodes trust in advertising networks and the very nature of a business that that has many variations including the very successful Google AdWords model that generates over $300M in profit every year according to the company's latest financial statements.
Click fraud's impact on advertising effectiveness are also…
Bibliography
Midha, V. (2009). The glitch in online advertising: A study of click fraud in pay-per-click advertising programs. International Journal of Electronic Commerce, 13(2), 91.
Wilbur, K.C., & Zhu, Y. (2009). Click fraud. Marketing Science, 28(2), 293-308,401.
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