E-commerce Insights: All You Should Know About Click Fraud
+ behavioral, and
+ economic factors.
Credit Card-like Models
Michael Leonard, CEO of the recently launched Authenticlick, described how his company rates clicks “using models similar to those used in the credit card industry for credit scoring.”
To build scoring models using CHAID (chi-square automatic interaction detector) trees, he notes that Authenticlick combines tens of thousands of metrics, including:
+ Internet provider patterns,
+ time of day,
+ landing page and
+ country of origin.
Michael Stebbins, vice president of marketing at ClickTracks, describes how ClickTracks creates baseline statistics for each advertiser. Consider these metrics:
+ time on site,
+ conversion percentage,
+ campaign cost, and
+ IP country of origin.
Clicks that deviate from the norm in too many dimensions, he says, are brought to the attention of the advertiser for human intervention.
“Trimming poorly performing ads can provide more than 10 times the benefit as worrying about fraud,” Stebbins says. “It’s really all about the marketing. Cut out your bad ads!”
Most criminals who perpetrate click fraud do so for cash. Understanding money flow is essential to understanding click fraud. Differentiate between core search and contextual search.
Core search consists of the familiar text ads that appear on Google and Yahoo! search results pages. When a searcher clicks on one of these ads, the engine charges the advertiser and payment flows from advertiser to engine.
Who benefits from a fraudulent click on your core search ads?
The engine earns a few pennies, but the major engines wouldn’t defraud you. The risk is too great for such small return. However, the fraudulent click still harms you and in so doing, it helps your competitors.