Monday, May 5, 2008

The Click Fraud Problem & how to eliminate it.

by: Christos Varsamis

Click fraud has become a major problem for online marketers. If you participate on Google adwords campaigns or Overture, you must already pay a lot for your campaigns.


What is click fraud?


Click fraud is the deliberate clicks to PPC search engine ads for completely other reasons than expressing interest for buying the related products or services.

Overture defines click fraud as clicks arising for reasons other than the good-faith intention of an Internet user to visit a web site to purchase goods or services or to obtain information.

Google defines click fraud, or invalid clicks, as any method used to artificially and/or maliciously generate clicks or page impressions.

In simple words, Click fraud means that someone is cheating you and that you pay too much for your pay per click campaigns.


Who is doing that?

Three main groups click on pay per click ads, without real interest in the offered goods:

People who joined Google AdSense or other per click affiliate programs click on the ads on their own web site to make a little income. Often, these people cooperate with other webmasters to click on each other's ads.

Some unethical companies click on the pay per click ads of competitors to drive up their advertising costs.


Companies (often in India, Russia and China) hire people who are paid to click on ads.
Google and other search networks provide refunds to advertisers when click fraud has been discovered.

Google and Overture employ "fraud squads," or teams of people dedicated to fighting click schemes. But at least two marketing executives say such countermeasures are missing fraudulent clicks that are responsible for between 5 percent and 20 percent of advertising fees paid to all search networks.

This is a huge problem. There is no “pay per click” Company denying that click fraud exists. Web analytics companies estimates that the 50% of all click activity is fraudulent.

This means that your pay per click marketing activities are half effective as they could be because of click fraud.

Overture spokeswoman Jennifer Stephens refutes that estimate, saying that the numbers likely represent acts of fraud that are ultimately caught. She added that Overture filters most fraudulent clicks with the best antifraud system in the industry, which combines technology and human analysis.

Most advertisers are aware of the click-fraud issue but have not delved into it because of the technical complexities involved. Others are concerned that they could jeopardize their relationships with the powerful search networks if they complain too loudly.

One of the best ways to eliminate click fraud is using anti click fraud services such as ppctrax (www.ppctrax.com). They provide services like the below:

IP address capture.
IP address geographic Location.
User Agent (browser, bot etc.)
See exactly what keywords are generating your clicks
Date and Time stamp
System detects sudden click spikes from one or more IP addresses
Real-time email alerts at 80% and 100% of your account's transaction utilization
IP address history - alert you to prior offenders

Another similar service is “who is clicking who”:

http://www.whosclickingwho.com

Other ways is the click fraud capture software like Click Auditor:

http://www.keywordmax.com/click_auditor.html


About the author:
Christos Varsamis is an internet marketing consultant. He is the creator and publisher of http://www.settinglifegoals.com& http://www.internetmarketingsuccesstips.com.


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Saturday, May 3, 2008

Guide to Pay Per Click Search Engines

by: David Greene

Search Engines. What is a Pay Per Click Search Engine?

A pay per click search engine is designed for pay for performance advertising. That means that an advertiser pays the search engine owners only for traffic that is delivered to his web site in accordance with key words that the advertiser chooses to bid on.
Example: An advertiser has a web site that advertises vacations to Thailand. The advertiser can bid on "vacations to Thailand" as a key word. If he wants to be in the number one position on the search results page he can place a bid that is one cent more than the existing high bid for the key word term "vacations to Thailand". Let's say that the present high bid is $0.20 per click. A bid of $0.21 would than gain the top position for the advertiser.

If his key word was clicked on 10 times in one day he would pay 10 X $0. 21 , or $2.10 for the traffic that was delivered to his web site for that day. The advertiser is paying only for performance. There is no charge for the number of times that the advertisers ad appeared on the search engine web site that day. The charges are based only on the number of times that a visitor clicked on the key word and was delivered to the advertiser's web site. Thus the name "pay per click".

Why Use Pay Per Click Search Engines?

In just a few words it is because the leading Pay per Click Search Engines (PPC) can quickly deliver quality targeted traffic to your web site. Anyone who has build web sites know that building web sites is the easy part. The tough part of the process is in driving enough qualified traffic to the site to make it worth while from a commercial view point.
Even if you are successful in building a web site that the search engines love it will take some time, probably two or three months, perhaps longer, for the search engine spiders to find your site and for your site to be listed in the search engine. If you are trying to make money on the Internet that is a long time to go without traffic.

No traffic means no sales and no income. That should not be your objective unless you enjoy building web sites no matter how few people ever visit them.

With pay per click search engine accounts you can almost immediately drive qualified traffic to your web site. If you are serious about building a business on the Internet that is a pretty good reason to use Pay Per Click Search Engines.

Pay Per Click Search Engine Tips.

1. Use quality pay per click search engines that already have a high volume of traffic. It doesn't matter how cheap the bid for your key words may be if there is little traffic on the search engine and your key words are never clicked on.

2. Know your market. If you are selling "vacations to Thailand" do some research to find out what words and phases folks who are thinking of traveling to Thailand are actually using in their searches. An excellent tool to assist in this research is Wordtracker . Wordtracker will quickly help you to decide which key words are truly worth bidding on.

3. Quality pay per click search engines will have starting bids from one cent to five cents per key word. It is important to know that about 80% of the traffic for any key word will go to the top three bids. So if you want a lot of traffic to your web site try to position yourself in the top three spots. Just as with real estate location makes all the difference in results.

4. Set up a realistic budget for each search engine. Quality pay per click search engines get a lot of traffic so be prepared for a lot of traffic to your site if you bid on popular key words.

5. Popular key words can be expensive so choose your key words with great care. It is best to stay away from key words that are too general in nature. Thus to continue with the example above bidding on the key word "vacations" would not be wise if you are selling vacations to Thailand. Yes, you would get a ton of traffic but it would be more than likely be too general and you would spend a lot of money for poor results. It is almost always a better strategy to bid on phases instead of one general keyword. Therefore bidding on "vacations to Thailand" would be a far better choice than bidding on "vacations".

If you are selling vacations to Pattaya Thailand it would be better to bid on "vacations to Pattaya Thailand" than on "vacations to Thailand". The more keywords that you can find that exactly match up with whatever it is that you are selling and that folks will be searching for the more money you will save (less money will get you in the top three spots) and the better your results will be.

Wordtracker is an excellent tool that can find key word phases that are actually being searched for and that you would probably never think of going it alone.

6. Think about using a lot of keywords rather that a common few. The common few will be expensive and will likely deliver to your web site a lot of poorly targeted traffic with poor conversion ratios (traffic to sales). People search for the darnest things and those who actually plan on buying something usually search by using phrases. With some effort you can find phrases that are cheap and that will deliver highly targeted traffic...the kind that converts into sales.

7. No matter how much traffic you drive to a web site if you are marketing sorry products or services or if you have excellent products and services but you have a sorry website you are wasting your time and money. Everything must be right to achieve business success. Make sure that your site is "order taking ready" before you turn on your pay per click traffic.