Click-fraud: Is it really a problem?

[Dale King]

Pay-per-click advertising is the most popular and successful form of advetising on the internet. But it has a bane: Click-fraud. And it's a real and legitimate problem. Or is it? Depending on who you ask, click-fraud estimates range from 10%-30%. But let's compare that to the negatives of other marketing methods.

If you advertised in an online ezine or newsletter that has a readership of 100,000, does that mean all 100,000 subsribers are going to see your message? No. Here's why. Because of e-mail filters and unopens, approximately 25%-75% of subscribers are never going to see your message.

And if you did a direct mail campaign and sent out 10,000 pieces, approximately 95-99% of those who receive your message are going to throw it in the trash without even opening the envelope.

And if you advertise in a general audience medium like your local newspaper, most of the circulation is going tio be wasted, because the majority of the readership is not going to be interested in your offer.

The point is there is no perfect advetising method. There just isn't. There are pros and cons, positives and negatives, advantages and disadvantages - regardless of what advertising method you choose to use.

However, smart, educated marketers plan for and adjust accordingly for those various factors.

Dale King

[Kurt Henninger]

I would concur that click fraud on PPC is a problem. However, when you are doing your break even calculations on what you can afford for each click, I take that into account and it isn't a problem.

[mewcreations]