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Old 23rd September 2006, 09:54 AM
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"Dummy Sites" cost US advertisers $1 Billion/year

The dark side of online advertising

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Most academics and consultants who study online advertising estimate that 10% to 15% of ad clicks are fake, representing roughly $1 billion in annual billings. Usually the search engines divide these proceeds with several players: First, there are intermediaries known as "domain parking" companies, to which the search engines redistribute their ads. Domain parkers host "parked" Web sites, many of which are those dummy sites containing only ads. Cheats who own parked sites obtain search-engine ads from the domain parkers and arrange for the ads to be clicked on, triggering bills to advertisers. In all, $300 million to $500 million a year could be flowing to the click-fraud industry.
The author seems happy to casually disparage the entire parking industry and group the legitimate 90% of clicks on so-called "dummy sites" alongside the scammers. This article is sure to instill confidence in businesses looking at shifting more of their advertising budget online.
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Old 23rd September 2006, 10:02 AM
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Re: "Dummy Sites" cost US advertisers $1 Billion/year

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Originally Posted by alex
The dark side of online advertising


The author seems happy to casually disparage the entire parking industry and group the legitimate 90% of clicks on so-called "dummy sites" alongside the scammers. This article is sure to instill confidence in businesses looking at shifting more of their advertising budget online.

Being an advertiser myself at one time, i've to agree that there is a lot of cheating, definitely more than 10%. 2 years ago, I spent a few months chasing overture and google for repayments. After that, i pulled off my ads, and decide to concentrate on SEO instead.
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Old 23rd September 2006, 10:20 AM
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Re: "Dummy Sites" cost US advertisers $1 Billion/year

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Originally Posted by touchring
Being an advertiser myself at one time, i've to agree that there is a lot of cheating, definitely more than 10%. 2 years ago, I spent a few months chasing overture and google for repayments. After that, i pulled off my ads, and decide to concentrate on SEO instead.
Agreed, we spent quite a bit with Yahoo on these advertising programs, and got very little in the way of measurable customers and ROI. I think it might do well for some businesses, particulary high end products like luxury vacations or timeshare type products where a bonafide lead can turn into a nice sale.
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Old 23rd September 2006, 11:43 AM
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Re: "Dummy Sites" cost US advertisers $1 Billion/year

Overture is a joke, they do not bother to address fraudulent clicks for small accounts - the usual reply - "We cannot control the clicks that come to our partner websites".

At least Google, after about 5 complaint emails, the adword guy gave in and agree to do a "reimbursement", which came short of the suspected damage, but nevertheless i still got back some money.

Funny that we both agree that PPC is not that effective, but yet we are still into domains. :p

Quote:
Originally Posted by bwhhisc
I think it might do well for some businesses, particulary high end products like luxury vacations or timeshare type products where a bonafide lead can turn into a nice sale.
You're right, i always thought that PPC is more for goods where either the profit margin is super high like earning at least $500 to 1000 per sale, or there is recurring income, e.g. credit cards, timeshare, hosting, etc.

Last edited by touchring; 23rd September 2006 at 11:50 AM.. Reason: Automerged Doublepost
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