Click Fraud: Why I’ve Always Emphasized Search Engine Ranking Position

The PC Week headline reads: 7 Charged with Using Malware to Rack Up $14M in Fake Ad Revenue

The Department of Justice has indicted seven people for allegedly hijacking millions of computers, manipulating traffic on popular websites, and generating more than $14 million in fraudulent advertising revenue.

The defendants — six Estonians and one Russian — allegedly hijacked more than 4 million computers using malware that rerouted Internet traffic to websites where they would get a cut of the ad revenue. Infected computers with users looking for popular websites such as Netflix, Amazon, and iTunes were rerouted to webpages that featured the defendants’ ads.

Can you prove that you haven’t paid for fraudulent clicks?

Hits and clicks are metrics that can be artificially inflated. Search engine ranking positions (aka SERPs) are hardly sexy but they are quantifiable and probably the fairest SEO metric. You can have a spectacular billboard in your driveway, on a main street in your city, or visible from a highway. Clearly the highway is the best position for prospective views of your billboard.

Remember the three rules of real estate: location, location and location. It applies to search engine marketing at least as much.

Paying for Traffic? 20% of Clicks are Fraud. [NY Times]

The New York Times reports:

More than 20 percent of clicks on pay-per-click (PPC) ads in the third quarter were unintended or malicious, resulting in wasted marketing money that drew website visitors with no interest on the product or service advertised and no intention to buy.

At 22.3 percent, the incidence of this problem, known as click fraud, increased more than 8 percentage points compared with 2009′s third quarter, according to a study released Wednesday by Click Forensics, a provider of click-fraud detection services and products.

Click fraud affects the effectiveness of PPC ad campaigns, in which advertisers pay a fee every time their ads are clicked. PPC ads are typically short, text-based and linked to advertisers’ websites. PPC ads usually run alongside search engine results and on regular Web pages related to their topic.

PPC ads are the most popular online ad format, accounting typically for between 45 percent and 50 percent of online spending by advertisers. Google is the world’s leading seller and distributor of PPC ads, from which the company generates most of its revenue.

Are you satisfied knowing that 20% of what you’re paying for is bogus?

Unlimited clicks for first- or second-page Google natural rankings cost a fraction.