How Google Manages Click Fraud 130
Finin writes "In February 2005, Google was sued by Lane's Gifts & Collectibles in a class-action lawsuit over click fraud. The company alleged that Google had been improperly billing for pay-per-click ads that were not viewed by legitimate potential customers. As part of a settlement earlier this year, Google agreed to have an independent expert examine their click fraud detection methods, policies, and procedures and make a determination of whether or not they were reasonable measures to protect advertisers. The report of the expert, NYU Information Systems Professor Alexander Tuzhilin (a Professor of Information Systems at NYU), is now available." Update 07/26/2006 at 12:52 GMT by SM: Fixed the link to Tuzhilin's report.
real link to report (Score:5, Informative)
http://googleblog.blogspot.com/pdf/Tuzhilin_Repor
Re:real link to report (Score:1)
Re:real link to report (Score:5, Informative)
- OptiRex [webmasterworld.com]
And the conclusion? (Score:3, Informative)
Maybe should have been in the summary. The document is also fascinating account of how they go about it however.
Statistics about click fraud shown to Adwords user (Score:5, Informative)
Re:Statistics about click fraud shown to Adwords u (Score:5, Insightful)
Jonah HEX
Re:Statistics about click fraud shown to Adwords u (Score:1)
Re:Statistics about click fraud shown to Adwords u (Score:2)
Jonah HEX
Re:Statistics about click fraud shown to Adwords u (Score:2)
Re:Statistics about click fraud shown to Adwords u (Score:2)
Giving the customer recent data, preferably not more than 48 hours old. Most people will expect near real time statistics from Google on this one.
Using multiple accounts to test many methods, thus allowing many attacks to be checked while making any delay between attack/statistics less of an issue.
Jonah HEX
Re:Statistics about click fraud shown to Adwords u (Score:1, Insightful)
Enron (Score:3, Interesting)
How is Google diferent that the big "E"?
Re:Enron (Score:2)
Wall street hates google.
How is Google diferent that the big "E"?
Enron was deliberately fraudulent. Google (to our knowledge) is not.
Re:Enron (Score:1)
Re:Enron (Score:5, Funny)
How is Google diferent that the big "E"?
Branding. For example, Google's famous motto is: "don't be evil". If memory serves, Enron's less-famous motto was: "Ken Lay needs a new boat".
Re:Enron (Score:3, Informative)
Re:Enron (Score:1)
Re:Enron (Score:1)
I believe the correct and revised motto was
"Ask Why
This was after Skillings lost it in an investor call where an analyst questioned his earnings and called him that.
It became the unofficial slogan of the company after that.
Ironically enough,
This slogan also fits quite nicely for Slashdot.
Re:Enron (Score:2)
I guess Google's new motto is... (Score:1)
From WSJ "Lawsuits Fly Over Google Founders' Big Private Plane"
Mr. Jennings says Messrs. Brin and Page "had some strange requests," including hammocks hung from the ceiling of the plane. At one point he witnessed a dispute between them over whether Mr. Brin should have a "California king" size bed, he says. Mr. Jennings says Mr. Schmidt stepped in to resolve that by saying, "Sergey, you can have whatever bed you want in your room; Larry, you
Re:Enron (Score:3, Insightful)
Re:Enron (Score:1)
I agree you shouldn't invest in something you don't understand. But I don't think there's an inherent flaw in investing in a company involved in futures trading.
google future (Score:1)
In regards to gmail, besides leading the way with "new approach blahblah", and many innovations like coloured conversations and advanced search options, what is the real business model behind it? Don't tell me that the adsense box on the right gets any click.
Re:google future (Score:3, Insightful)
The additional projects are just R&D with a very public face. They offer great brand exposure. They give Google's software team lots of experience dealing with the realities of building and maintaining software that thousands to millions of people use every day. They keep the company from developing tunnel vision. And in some cases they've put Microsoft on the defensive, so it has to spend time and resources defending its own markets rat
Re:google future (Score:1)
Re:Enron (Score:2)
Re:Enron (Score:2)
Re:Enron (Score:1)
Re:Enron (Score:2)
Advertising is such a scam when everything else is boiled away.
Re:Enron (Score:1)
VA Whatever-they're-hyping-now even created a few temporary Open Source millionaires.
Re:Enron (Score:2, Interesting)
Furt
Re:Enron (Score:2)
Serg: "What is the single most important thing for a company? Is it the building? Is it the stock? Is it the turnover? It's the engineers, investment in engineers. My proudest moment here wasn't when I increased profits by 1000%, or cut expenditure without losing a single member of staff. No. It was a young Greek guy, f
Re:Enron (Score:2)
I guess what do counts is that they earn a percentage of all click-throughs on websites, which means that by l
Re:Enron (Score:4, Insightful)
Google make pots of money because AdWords does result in a good return on investment relative to other forms of advertising.
Consider this. Imagine a fictional company that spends $10,000/month with Google on advertising, and is completely happy with the service because it results in lots of leads and sales. So it is actually profitable to spend this money. There are many companies in exactly this situation. Does it matter if 90% of clicks are fraudulent (which is probably not going to happen unless you are being deliberately targetted by a competitor)? If you are still getting a great ROI then no it doesn't matter. The invalid clicks are just noise.
Google does produce something valuable if not physical - it produces a ton of people viewing websites who then go onto buy things. Same as any form of advertising. Except the relevance of AdWords makes it more valuable than most.
Re:Enron (Score:1)
Re:Enron (Score:2)
Wrong. Google sells ads by auction. So, the price is determined by what people are willing to pay for it. If 90% of clicks turned out to be fraudulent and were filtered out, then people would just be paying 10 times as much for the remaining 10%.
The real problem is when click fraud is targetted at individuals, who end up getting 100% screwed.
(Also, if the ads are being displayed on some site
enron had one good product (Score:1)
Here is what they have now
http://www.gepower.com/businesses/ge_wind_energy/
Re:Enron (Score:1, Redundant)
Re:Enron (Score:2)
If ad-sense is its major source of money, and it keeps the underlying numbers pretty well buried, could we be looking at another Enron?
To my knowledge, Enron never produced anything of marketable value. It was essentially a mercantile operation that got increasingly further away from trading in actual goods to trading in promises of future deliveries. That has always been a bubbly area.
OTOH, Google's underlying success is based on a kind of entrepreneural manufacture: they were the first to develop a c
There is no report (Score:4, Informative)
Rather it is the answer to the judge and mentions (2 or 3 times, shortly) the report of the expert. All the meat that is to be found in the PDF is that the report is conclusive that Google does all it can reasonably to combat click fraud.
The PDF is interesting only if you're interested in legal stuff...
My 0.02
There is a report... That was the wrong pdf (Score:1, Redundant)
I'm sure our dedicated editors will correct it (Score:1, Offtopic)
Link Fraud (Score:4, Informative)
404 - File Not Found
Re:Link Fraud (Score:2)
No, it's there. Try the same link again.
Re: (Score:2)
From the objections_response (Score:5, Funny)
"The California attorneys take the position that the damages are 200 times $90 million, or 18 billion, which is more revenuse than google has received in its entire existance"
You just have to hand it to lawyers, they'll try anything.
Re:From the objections_response (Score:3, Insightful)
The number itself might be unreasonable, but not the fact that the damages are more than the income.
Re:From the objections_response (Score:2)
Would you care to explain your reasoning *in this case* though?
Re:From the objections_response (Score:2)
Re:From the objections_response (Score:3, Insightful)
Really? Aren't the damages in this particular case supposed to be fees that advertisers paid to Google that they shouldn't have paid? If that's true, how can the plaintiff attorneys allege that the damages for click fraud exceed the total revenue that Google has taken in during it's entire lifetime?
NOTE: I'm not saying your wrong. I just don't understand. Can you clarify?
Re:From the objections_response (Score:4, Informative)
That's the basic logic, I believe.
Re:From the objections_response (Score:2)
This is assuming a 100% conversion rate, which is simply ridiculous.
Re:From the objections_response (Score:2)
so they're seeking damages on lost sales opportunity, which may very well be much more than advertising costs.
Re:From the objections_response (Score:2)
Not at all. You would start with the percentage of fees paid that were fraudulent as the base amount. Then you add in the opportunity cost of, a) lost revenue for the duration of the AdSense subscription; b) fees that could have been paid to a more accurate advertiser for the duration of the AdSense subscription; c) time spent trying to track down and discover that the maj
Re:From the objections_response (Score:2)
In other words, lawyers are very good at getting milk out of rocks.
Re:From the objections_response (Score:2)
I don't know any numbers, so I'm going to make them up.
Company P (for Plaintiff) knows that if they get 1 billion hits from Google, they'll make 1 billion dollars. If they get 10,000 hits from Google, they'll make $10,000.
Company P has been paying Google $500 per month and getting 1 billion hits per month for 12 months. They have every right to expect
Re:From the objections_response (Score:2)
But in google's case it is all almost pure profit. They *maybe* spend 10 cents for each dollar.
Billboards (Score:3, Insightful)
Advertisers will pay for a billboard without any guarantee from the advertising company about how many people will drive past the sign, how many of those will read it, how many will take the information in and act on it. The client is assumed to be taking a risk in that regard.
Over time people decide for themselves whether a particular type of advertising is working for them. If the business keeps coming in why should there be a need for this type of analysis?
Re:Billboards (Score:1)
Re:Billboards (Score:5, Insightful)
But "outdoor advertising" firms make no representations that they can measure these things. You know what you're getting when you buy space on a billboard. AdWords is different because Google sells it with claims that they can track these things (indeed, they bill you based on the results of that tracking). If Google's click tracking is inaccurate, you aren't getting what you thought you were getting. That's the difference.
Re:Billboards (Score:4, Insightful)
I don't think many people expect every adwords click to result in a sale for the advertiser. Instead, people just check to see whether there's a correlation between 'more adwords clicks' and 'more sales'. If 100 adwords clicks produce 30 additional sales, you can say that the adwords are 30% effective. Then it's up to you to decide whether those 30 additional sales are worth the cost of those 100 clicks. If so, you can write 70% of their adwords fee off as a cost of doing business. If not, you can close your adwords account, or lower the amount you're willing to pay per click.
If Google was padding its numbers, people would see lower return rates from their adwords accounts. Those people would then be less willing to pay for the service. They wouldn't expand their accounts to cover other words.
In other words, there's already a feedback mechanism that punishes Google for any loss of efficiency in its adwords program, and rewards Google for providing the best results it can.
Re:Billboards (Score:1)
Now to this concept of noise - guess you've been reading your Claude Shannon? Again, you start off reasonable -
Re:Billboards (Score:2)
Try adding 'communication between agents' to your model.
If agents in the system have the capacity to communicate A) with each other, and B) with agents who haven't yet entered the system, the effect of information lag is greatly reduced. If a large number of agents within the system find each other saying, "I get bette
Re:Billboards (Score:2)
Thank you, in turn, for an equally polite and well-considered follow-up. You make some good points, and I think we have generally similar views of the situation, even if we approach the matter from different directions.
It's true that the sheer volume of experimentation currently underway does undercut the effects of communication among agents. OTOH, I think I'm working with a much more coarse-grained model of communication than you are. You discussed
Re:Billboards (Score:2)
Re:Billboards (Score:4, Informative)
I worked in advertising for over a decade and your statement is totally false. These days EVERY advertising medium being pitched to a client MUST contain all kinds of analytical data backing it up, and this includes billboards. Locations, lighting, traffic patterns, etc, etc.
And I'm sure that some outdoor media companies have their own internal research demonstrating that some locations feature superior demographics (ie, this road is between the corporate HQs and the wealthy suburbs and gets seen by all the wealthy commuters).
Re:Billboards (Score:2)
Re:Billboards (Score:1)
Ever notice those black hoses you'll drive over occassionally on the road. It's keeping count and track of the time. Ergo, a full record of how many vehicles pass and at what time. These have existed at least some 35+ years, quite probably more, and are still used today.
It shouldn't surprise you to know that the technology has improved [intertraffic.com] since the advent of those devices. Such systems are mainly used at the government level to monitor traffic. But as in another recent thr [slashdot.org]
Buy 50 billboards, get 10 (Score:1)
Google charging by clicks - if they misrepresent clicks I don't see how it is any different.
Re:Buy 50 billboards, get 10 (Score:2)
It's easy to say that Google is not doing a good enough job identifying illegitimate clicks, but it's not very easy at all to come up with a robust system for accounting clicks.
Thinking about stuff (Score:3, Interesting)
Re:Thinking about stuff (Score:1)
Re:Thinking about stuff (Score:3, Insightful)
"Probably. Besides, why would the user ever pick that last option?" (The last option being to download the ad and the ad's linked page, without displaying either.
If you really don't like ads, or especially a certain type (say, flash-based or pop-up-based ads), then the option to have the link "clicked" and cost the advertiser money without giving them any benefit might be appealing to the users of the ad-blocking software.
Personally, I like text-based meaningful ads like the ones Google provides, but c
Re:Thinking about stuff (Score:1)
In my case, I have both Google text ads and a banner ad. The banner one, I actually don't pay for the clicks, only for the 'air time.' On the other hand, for my Google text ads, I pay for the clicks.
I live in an asian country (guess which one
Re:Thinking about stuff (Score:2)
In other words, it's not illegal for you to build an ad-block that does what you describe. It's illegal for Google to refer to the pageloads that result as a legitimate click-th
Re:Thinking about stuff (Score:2)
Here's a more solid example if you're unclear:
People can (And do) sell AOL screennames for quite a bit of money. It's against the terms of service and they'll kill your account if they catch you. It is not illegal though.
Re:Thinking about stuff (Score:1)
In any case, the only way this could be construed as illegal is if it were actually fraud, whic
Re:Thinking about stuff (Score:2)
The law has this concept called "intent". It's not just what you do that matters, it's why you do it.
Re:Thinking about stuff (Score:2)
Only if you are writing the software for Google and it is used to generate revenue. It certainly isn't fraud when a user clicks on an ad and then decides not to buy. That is the risk of advertising...
i want my reparations (Score:1)
Ah.. (Score:1)
Academic community (Score:2, Insightful)
community to do this study.
The most the study says is that the algorithms the Google
uses are good to detect click fraud. It does not give any clue on
how much fraud is not detected by the algorithms.
Re:Academic community (Score:2)
Ummm... But... Oh, never mind.
Re:Academic community (Score:3, Interesting)
One can argue that with some statistics one can find a site that is using automated clicking by using a network of infected computers. This would show as a unusual amout of clicking, but if the bad gu
Re:Academic community (Score:2)
If only Google had a database full of sites that link to each other..
do not think much of click fraud detection system (Score:5, Interesting)
Re:do not think much of click fraud detection syst (Score:2, Interesting)
Re:do not think much of click fraud detection syst (Score:2)
I've wondered what would happen if I used Ad-words on my blog and a person in my family happened to click on an interesting ad. Given it's a low-volume blog I'm sure that Google would be able to correlate the IP addresses, so I imagine s
Re:do not think much of click fraud detection syst (Score:2, Interesting)
A good read actually - Googles Omnibus Response... (Score:4, Informative)
It is basically a response to the objections of a grand total of 51 people in "the class". An incredibly small number of objections.
From the document:
"The assertion that Google has done nothing wrong was echoed by advertisers that opted out of the settlement."
"Unlike Retailers, Pay per click advertisers can limit the money risked for each click and for each day...Businesses should treat pay-per-click advertising like any other advertising...If it's costing more to advertise than your resulting profit, STOP ADVERTISING."
And, regarding the "click fraud detection", there is only a small portion of this document that mentions the review process by Dr. Tuzhilin. It does mention that the click fraud detection methods by Google were confirmed to be reasonable.
And finally, it was interesting to see read the jabs taken at the lawyers who brought the class action lawsuit to begin with...and the copy-cat cases from California, obviously a bunch of ambulance chasers.
Google Screws p2pnet.net out of its Share (Score:4, Informative)
You can read about it at http://www.p2pnet.net/story/9086 [p2pnet.net] . This has happened not only to Jon Newton but also to many other small website owners. I am a Geek who used to love using Google, but now that Google has become big, it is doing what most other big companies do - screw the small guy and just walk away. Needless to say, I use alternative search engines instead.
Re:Google Screws p2pnet.net out of its Share (Score:2)
Re:Google Screws p2pnet.net out of its Share (Score:2)
Yes, sometime their result do suck, but many times theyt also return pretty good results as well.
I imagine that they will grow and improve as more revenue comes in. If and when they get big and start abusing their market power, then I will support another search engine company.
Re:Google Screws p2pnet.net out of its Share (Score:1)
Re:Google Screws p2pnet.net out of its Share (Score:1, Redundant)
Well, this isn't exactly a case of Google maliciously screwing the small guy. In fact, this is Google needing to make a choice between two small guys: the ad-displaying site, and the advertisers. Even if Google was incorrect about whether or not this was fraud, this was still them going out of their way to not charge their advertiser
Headline redundant! (Score:1)
----------
Redundancy Police,
Department of Redundancy Department
Speaking as someone who has worked on anti-fraud (Score:2)
So, a professor huh? He forgot to spellcheck. (Score:1)
Either that, or I need to catch up on my knowledge of the Internet.
He claims that "Computing devises attached to the Internet can exchange data of various types..."
Computing devises???
I am sorry, I just had to comment on this. It is not every day that Computer Science professors misspell devices :)
Re:What Microsoft should learn from Google... (Score:2)
Whereas MS (and all of us forced to use it's OS) knows that if any 3rd party expert devs looked at their code in any detail, they'd probably be horrified. I'm sure they already know that their code is spaghetti, why prove it to the world?
Re:What Microsoft should learn from Google... (Score:2)