April 19, 2006
We discussing the level of concern we should have about click fraud and how we need to be careful who we listen to when it is put forth like it's an unstoppable epidemic.
Here are a few things the Mercury News reporter Mike Langberg is panicking about:
"But Google and Yahoo aren't sharing enough information to tamp down rising concerns about click fraud.
"But if it ever becomes rampant -- say, half of all pay-per-click traffic -- the business models of Google and Yahoo could collapse as advertisers walk away or spend drastically less money.
"Click fraud is to Google(GOOG) and Yahoo(YHOO) what bird flu is to world health -- a problem that's manageable today...
"...but more lawsuits against Google and other Internet companies are pending.
"Yahoo was accused earlier this month of failing to catch at least a few spyware companies
"Yahoo isn't willing to concede there's any broader problem with its affiliate programs.
"...federal prosecutors in San Francisco announced the latest in a string of click-fraud criminal indictments.
"As long as any bad clicks are getting through Google and Yahoo's filters, advertisers clearly need more information -- if only so they can direct their dollars toward companies doing the best job of detecting click fraud."
This last argument is naive and doesn't hold up at all if someone understands the advertising world. Are all the companies paying for TV advertising going to ask for their money back based upon DVR usage if it could be measured? How about those that might turn off their radios or lower them during commercials.
Click fraud is at the same stage that bird flu is to world health? This guy needs some tranquilizers. Maybe Mercury News covers them for him.
Lawsuits against Google are still pending. So? Anybody can file a lawsuit, it means nothing whatsoever.
Yahoo isn't willing to concede there's a broader problem... Maybe it's because their telling the truth that there isn't one.
...federal prosecuters...announced the latest in a string of click-fraud criminal indictments. Good it's working. This was meant to make us feel fear? This means that they are getting caught and taken out of the equation.
The comment about Yahoo being accused of not catching a few spyware programs. Oh no, not that!
The point is that it's just plain stupid this comment about "as long as any bad clicks are getting through..." In other words he is calling for something that no one on earth can provide - perfection. I think Mike just needs to take something to calm his fears and relax a little.
The one point I do agree with though is that there are unscrupulous people out there trying to stir up fear so that they can get business from online marketers. Make sure you understand where this information is coming from or you'll find yourself paying for solutions that you don't even need based upon false information.
As I've said a lot of times before, these companies do need to take seriously what is being said, even if it is based upon fear peddlars. Because even if it isn't true, and people believe it, to them it is true.
Yahoo and Google have come out and said that the numbers being thrown around by those that are lying are way off base according to the records of the companies. So why not communicate more often and give at least a figure concering the problem that people can grab hold of to relieve their concerns? It probably wouldn't hurt.
