Search Engine Marketing, Search Engine Optimization and Search Engine Positioning Weekly Free Newsletter, April 22, 2006 edition

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(Continued) The RFS Newsletter, Apr. 22, 2006. Page 5
In news on Thursday, according to a new report, the average rate of click fraud is less than 14 percent, when compared to original estimates of 20 to 35 percent as suggested in the past. The Click Fraud Index shows that the industry-wide average click fraud rate is at 13.7 percent on average. In fact, the data show that the overall click fraud rate at top-tier search engines such as Google and Yahoo is even lower, at 12.1 percent. The rate increases to 21.3 percent at so-called Tier 2 search providers and 29.8 percent at Tier 3 search companies, according to the Index. The Click Fraud Index monitors and reports on data collected by the Click Fraud Network, a free service advertisers can use to track their online ad campaigns.

Click Forensics, which hosts the service, also sells pay-per-click validation services and licenses technology to advertisers. Click fraud can occur when a Web site publisher clicks on ads on its site to drive up its revenue or when an advertiser clicks on a rival's ads to deplete its ad budget, either manually or through the use of software bots in click farms. There is disagreement and uncertainty in the industry as to how big a problem it really is. Search engines say they catch most click fraud and compensate customers for any that slips through the cracks.

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