I’ve been reading a lot about Click Fraud lately and its been really interesting. I wanted to share a bit of my perspective on the whole issue and point you guys to some useful resources that I’ve found extremely useful. There are tons of news articles that project this concept as theDark side of the online advertising . Many also blame that efforts to mitigate this type of fraud is not in the interest of the Ad Networks as increased clicks result in incremental revenue. The key to understanding the implications of click fraud, as it is in any other concept, is in having increased awareness of the issue.

Click Forensics, a leading solutions provider for improving traffic quality for online ad campaigns, reported that though there is an overall dip in click fraud rate in Q2 2009 over Q1, click fraud traffic from sophisticated sources and scripted programs rose again in Q2 2009. This is evident from the rise of Publisher Collusion Fraud where publishers are employing sophisticated IP rotation methods or botnets  in oder to inflate their commissions.

There is a huge incentive for the Ad Networks and Search Engines to look at this as a serious concern because any hint of discomfort advertiser will lead the advertiser and/or publisher to defect from the system which will eventually lead to revenue losses.  Infact, Click Forensics President, Tom Cuthbert states that the increased diligence from the Ad Networks and Search Engines is the main reason for the click fraud rates to steadily decrease over the past few quarters. Google for example has set up a resource center to raise awareness about this issue. All the docs, presos and videos at this link are excellent reads on the topic.

So, from a technology standpoint, Search Engines and Ad Networks are doing their bit by developing tools and techniques in order to mitigate the effects of click fraud. What is lacking though are studies that look at user, publisher and advertiser behavior towards click fraud. Do they know what click fraud is? How do they validate erratic behavior on their campaigns? Is there a certain level of awareness to help them make informed decisions ?etc., There is enough proof to tell you that often advertisers complain that a seemingly erratic behavior in their campaigns is click fraud while the real reasons for such a behavior might be something completely different. Conducting research hence is important for the Search Engine  and Ad Networks to develop a strategy around increasing awareness around this issue that actually is effective.