Click Fraud - Google Latest Steps - Important

I heard that google is doing some serious steps in order to combat click fraud on its adwords and to help investors increase ROI , any one have any updates on this Inside Issue?
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mcse20002000Asked:
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humeniukCommented:
Not everyone agrees: www.msnbc.msn.com/id/8417283/.
duzCommented:
mcse20002000 -

>any one have any updates on this

Click fraud is obviously the number one issue for Google. In Google's official filing for the IPO under the heading 'Risk Factors' it said "We are exposed to the risk of fraudulent clicks on our ads. We have regularly paid refunds related to fraudulent clicks and expect to do so in the future. If we are unable to stop this fraudulent activity, these refunds may increase. If we find new evidence of past fraudulent clicks we may have to issue refunds retroactively of amounts previously paid to our Google Network members. This would negatively affect our profitability, and these types of fraudulent activities could hurt our brand. If fraudulent clicks are not detected, the affected advertisers may experience a reduced return on their investment in our advertising programs because the fraudulent clicks will not lead to potential revenue for the advertisers. This could lead the advertisers to become dissatisfied with our advertising programs, which could lead to loss of advertisers and revenue".

Google does indeed make unsolicited refunds and there is anecdotal evidence that these are on the increase.  The question though is this, is it because they are getting better at detecting fraud or is there simply more fraud as a percentage of revenue.

I think it is probably both but Google keeps the numbers a closely guarded secret and avoids publishing any numbers at all in the accounts from which an estimate could be made.

They are certainly not going to tell us what steps they take to detect fraud (for obvious reasons) and they don't tell us the magnitude of the problem so all we can do is just speculate....

- duz

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