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Click Fraud spiraling out of control, says BusinessWeek
businessweek.com — Today's cover story on BusinessWeek is all about Web 2.0 and how its major source of income is turning out to be riddled with widespread fraud. There are actually 4 seperate stories and loads of graphs/tables. A lot of Web 2.0 companies (including Digg) might have to find new business models if this tidal wave of advertising fraud can't be stopped
farksucks- 6 diggs
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- farksucks, on 10/12/2007, -0/+15 years from now we're going to look back at the current business practices of most Web 2.0 companies as being morally indistinguishable from what happened during the last dot.com mania- where all the companies were "trading" hundreds of millions of dollars of advertising inventory, except no money was changing hands. This allowed everyone to inflate their revenues, pump up their stock, and cash out hundreds of billions of dollars in insider options before the bottom fell out.
If PPC advertising turns out to be a riddled with fraud as some critics are saying, Google and Yahoo are gonna be in for a world of hurt. Not so much Microsoft since they don't even have a third-party publishing ad network you can sign up for and clickfraud! :-) - beachie, on 10/12/2007, -1/+0This article is laughable. Firstly, the guy has spent $2m since 2003, and is complaining about 5% loss. Try getting that kind of effectiveness in traditional print, radio and TV media advertising. It's obviously working well enough for him or he wouldn't have been persisting for three years!
Secondly, he's complaining that he's getting fraudulent clicks from countries like Syria and Korea - has he not seen the geo-targetting option that stares you in the face every time you edit your Google campaign?!
The power of targetted Internet advertising has the traditional media running scared, including BusinessWeek, as this article proves. - swarren, on 10/12/2007, -0/+1I'll have to say, this doesn't sound as unlikely as some might believe. My husband's business has had accounts with both yahoo and google and has had problems (questionable charges) with both. Most recently, he canceled with yahoo only to have it mysteriously come back to life and charge his credit card a month after the fact. The customer service rep was kind enough when he called in about it, but she could not explain why the account was reactivated when he obviously did not authorize it.
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