A huge problem that exists in the world of Pay-Per-Click advertising (or PPC) is Click Fraud. Because of its pervasive nature, this issue concerns all actors in the PPC chain, from advertisers to publishers to Google itself.

What is Click Fraud?

Click Fraud is the act of clicking on Google Adsense Ads, or causing such ads to be clicked, with the purpose of generating profit for the advertiser. It can be done manually, or automatically, with programs or scripts.

Click Fraud can be intentional, or not. Intentional Click Fraud occurs when the publisher (website owner) clicks on his own ads (or causes his ads to be clicked) to generate ill-gotten gains for himself. Unintentional Click Fraud occurs when unbeknownst to the website owner, his friends and family will repeatedly click on his or her ads in order to create revenue for the website owner.

Click Fraud is called Click Fraud for a reason: it is FRAUD, whether intentional or not.

Consequences of Click Fraud

There are two main consequences of Click Fraud. One of them affects directly the website owner, and the second reflects on the PPC system in General

Personal Consequence

Once Click Fraud is discovered by Google (or any other PPC provider), the website owner’s Adsense account will be banned, permanently. The publisher will therefore forfeit all earned income, whether generated through Click Fraud or not. This is especially difficulty for the publisher, in particular if he or she was unaware of the activities in his account.

System-wide Consequence

Click Fraud erodes the confidence of advertisers, period. Because of Click Fraud, honest advertisers are robbed of revenue, and since they advertise with Google Adwords, are given the bill for their robbery, adding insult to injury. In the long run, they will be unwilling to increase their bids for keywords, depriving publishers of honest revenue, and if the problem is severe, may drop out altogether and explore other advertising venues.

Click Fraud is a problem that affects all levels of the PPC chain. In the beginnings of the Internet, it might have been considered a “victimless” crime, but we must realize that thousands upon thousands of people rely on Adsense for revenue, and any erosion in the confidence of the system will affect them all.

Be wary of Click Fraud, and guard against it, whatever your position in the chain, because it is a problem that affects all of us.