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Online Advertising : Click Fraud

Advertising is no longer limited to television and billboards. The use of social media and websites has provided businesses with the opportunity to advertise more effectively. Social Media platforms and websites now see advertising as a main revenue stream as businesses are attracted to the measurable statistics that can be delivered with online advertising. As online technology is advanced it can measure how many people visit certain websites, click certain parts of a website, even measure the whole journey that a user goes through on their site. This means that this can be provided as a measurable statistic to businesses that can let them know how successful their advert was. 

The way that websites and social media platforms earn money is by charging the businesses per click (Pay Per Click or PPC). Every time someone clicks on an advert on a website, the company whose advert is being clicked on is charged a set amount. If the price of each click is £0.01 and the advert is clicked 1000 times, then there is a charge of £10. At first glance this is a very effective and economical way of advertising a business because, if your advert doesn’t receive any clicks then you don’t pay. 

Unfortunately the pay per click scenario has led certain companies to use computers or bots to falsely click on the ads in order to receive more money from the businesses advertising. In return, the businesses receive false figures on exactly how many clicks they received on their advert, which is unhelpful when the business is relying on the adverts statistics to decide on their future marketing activity. 

As you can see this is a fraudulent money making scheme costing businesses around the nation a lot of money for clicks that they aren’t really receiving on their adverts. It is hard to fall victim to click fraud when you use legitimate advertising, such as Facebook and Twitter who have their own advertising system built into each persons profile and do not permit third party publishers. It is impossible to prevent 100% of click fraud, however analysing statistics from adverts can help. If unusual activity is seen on an adverts statistics, analysing and eliminating areas where there are low numbers of conversion (users actually buying from the site), but high clicks may be the signifier for a business that click fraud is occurring. Care has to be taken if this process is used, as a misjudge of statistics may result in losing a large number of valuable customers, if a large area is avoided due to potential click fraud. 

Many platforms are working extremely hard and have measures to prevent click fraud on their advertising. Google for example has created the most robust anti- click fraud program. They first use advanced technology to detect and filter out invalid clicks before an advertiser is charged. Next they use their own Ad Traffic Quality Team who manually analyse fraudulent clicks, as well as launching investigations based on any reports of suspicious activity. 

Adjusting ad targeting so that adverts are specifically targeted to smaller groups is an effective way to avoid click fraud, as well as using legitimate platforms for advertising such as Facebook and Twitter who are known to be trustworthy with their advert manager software. If any such fraud is suspected on any advert accounts it should be reported to the online platform that is publishing the advert as they will need to investigate the report further. 
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