It's the End of Google AdSense?
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According to Verne Kopytoff, Chronicle Staff Writer at sfgate.com, "Internet advertisers paid $800 million for bogus clicks on their marketing messages last year (2005), shaking confidence in the industry and prompting many to reduce spending with Google, Yahoo and other web sites".
These affirmations comes after a market research firm called Outsell released a report that shows what many already knew: click fraud in contextual pay per click advertising is a big problem!
The report reveals that 14.6 percent of all clicks are bogus, and that 27 percent of advertisers reduced or stopped spending on click-based advertising.
"In our opinion, it is not acceptable that advertisers fund the illicit profits of the scammers," said in the report Chuck Richard, vice president of Outsell.
He said that the fraud is easy to get away with and web sites have done little to stop it.
Outsell report found that 7% of advertisers request a refund, netting an average of $9,507. Unsolicited refunds were paid to 4.2% of advertisers, with an average of $9,444 coming from Google and $4,068 from Yahoo.
A spokeswoman for Yahoo in Sunnyvale, denied that her company is lax about click fraud. A spokesman for Mountain View's Google didn't respond to a telephone call seeking comment.
Even more, according to TNS Media Intelligence, online advertising spending will climb to $20 billion in the U.S. in 2006, equivalent to 13 percent of the total anticipated ad spend of $150 billion across all media.
TNS is one of a dozen or more organizations that track and/or report on interactive ad spends, all of whom have different methodologies, categories and driving assumptions, and which naturally produce different actual forecasts.
"Pay per click is a really rudimentary advertising -- a baby step -- and it's destined to decline and be replaced by other advertising methods," said Richard.
In all those years AdSense was a good cash cow for Google and may web site owners.
Google come up with the idea and finally realise what mess was build around the AdSense money roundtable.
To squeeze money from Google, webmasters realize they don’t have to to anything, to sell anything or even to add value to their web pages... they just need THAT click!
Melting these into a whole and we get today's picture: millions of splogs and junk web pages.
A final note: Outsell's survey was based on the responses of 407 online advertisers representing a cross-section of U.S. business.
Their spending ranged from several thousand dollars online annually to more than $10 million. Here's some other findings of the survey:
- clicks believed by advertisers to be fraudulent: 14.6%
- money paid by advertisers for bogus clicks: $800 million (2005)
- advertisers who said they were victims of click fraud: 75%
- advertisers who said they reduced click-based advertising or plan to: 37%
- revenue lost by Google, Yahoo and other web sites, as a result: $500 million
- advertisers who request refunds because of fraud: 7%
Source: Outsell Inc.
PS: if Google AdSense is almost gone... what's next? Well, I guess affiliate marketing will make a strong comeback!
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These affirmations comes after a market research firm called Outsell released a report that shows what many already knew: click fraud in contextual pay per click advertising is a big problem!
The report reveals that 14.6 percent of all clicks are bogus, and that 27 percent of advertisers reduced or stopped spending on click-based advertising.
"In our opinion, it is not acceptable that advertisers fund the illicit profits of the scammers," said in the report Chuck Richard, vice president of Outsell.
He said that the fraud is easy to get away with and web sites have done little to stop it.
Outsell report found that 7% of advertisers request a refund, netting an average of $9,507. Unsolicited refunds were paid to 4.2% of advertisers, with an average of $9,444 coming from Google and $4,068 from Yahoo.
A spokeswoman for Yahoo in Sunnyvale, denied that her company is lax about click fraud. A spokesman for Mountain View's Google didn't respond to a telephone call seeking comment.
Even more, according to TNS Media Intelligence, online advertising spending will climb to $20 billion in the U.S. in 2006, equivalent to 13 percent of the total anticipated ad spend of $150 billion across all media.
TNS is one of a dozen or more organizations that track and/or report on interactive ad spends, all of whom have different methodologies, categories and driving assumptions, and which naturally produce different actual forecasts.
"Pay per click is a really rudimentary advertising -- a baby step -- and it's destined to decline and be replaced by other advertising methods," said Richard.
In all those years AdSense was a good cash cow for Google and may web site owners.
Google come up with the idea and finally realise what mess was build around the AdSense money roundtable.
To squeeze money from Google, webmasters realize they don’t have to to anything, to sell anything or even to add value to their web pages... they just need THAT click!
Melting these into a whole and we get today's picture: millions of splogs and junk web pages.
A final note: Outsell's survey was based on the responses of 407 online advertisers representing a cross-section of U.S. business.
Their spending ranged from several thousand dollars online annually to more than $10 million. Here's some other findings of the survey:
- clicks believed by advertisers to be fraudulent: 14.6%
- money paid by advertisers for bogus clicks: $800 million (2005)
- advertisers who said they were victims of click fraud: 75%
- advertisers who said they reduced click-based advertising or plan to: 37%
- revenue lost by Google, Yahoo and other web sites, as a result: $500 million
- advertisers who request refunds because of fraud: 7%
Source: Outsell Inc.
PS: if Google AdSense is almost gone... what's next? Well, I guess affiliate marketing will make a strong comeback!
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Posted by Valeriu Popescu at 3:09 PM
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