Google’s NEW Click Fraud Problems? YouTube and MySpace
By DONNA BOGATIN • Mar 17th, 2008 • Category: CONFERENCE CIRCUITIs click fraud growing like a weed? How about like spam?
Methods for “improving” the quality of Google AdWords accounts include preventing Google’s own MySpace and YouTube content network from showing Google ads. Suggests who? Google, and Click Forensics.
Tom Cuthbert, Click Forensics CEO, warned Search Engine Marketers today at SES NY of the low quality traffic emanating from social networks, underscoring the Google CEO’s own recent Wall Street acknowledgement that the number one search engine is finding it hard to monetize such user generated content sites.
Google’s click-fraud point man, Shuman Ghosemajumder, pointed out that Google comes to their advertisers’ rescue by enabling an opting-out of “certain types of pages,” such as video-sharing sites and social networks”: YouTube and MySpace, for big example.
Traffic quality on content networks is a costly problem that won’t go away, Cuthbert indicated:
Like spam, click fraud continues to get worse. Advertisers are reducing spending or excluding entirely. Less inventory is offset with higher CPC.
What is Google doing to combat the problems? How about Yahoo?
At today’s “click fraud issues” panel, Ghosemajumder replayed his well known slide show aimed at touting the notion of a risk-free Google advertising proposition via trust Google to do the right things messaging. Yahoo, on the other hand, announced two new initiatives in its click fraud battle.
Yahoo’s point man, Reggie Davis, opened his presentation this afternoon by chiding Ghosemajumder how Google’s legal settlements of click fraud law suits were a whopping $90 million, as opposed to Yahoo’s own, small $5 million.
Davis then announced that Yahoo has been “pre-audited” and is “ready to be certified” subject to the IAB’s release of promised “click measurement” standards. By contrast, Ghosemajumder was silent on Google’s click fraud audit position.
Davis also announced that Yahoo is “teaming up with Click Forensics to combat fraudulent clicks that target search engine marketing advertisers,” making Yahoo the “first search engine to cooperate with a third-party to obtain additional feedback and promote its goal of advertiser satisfaction and return on investment.”
Yahoo is also apparently the ONLY search engine to do so. I asked Davis during the Q & A: You began by telling Google that your click fraud settlement is smaller than theirs. Following up on that sentiment, how big a competitive advantage over Google does your deal with Click Forensics represent?
Davis declined to elaborate on how Click Forensic’s “securely sharing relevant account information, such as site-side click behavioral data,” with Yahoo enhances the number two search engine’s unique selling proposition over Google’s, instead taking the opportunity to cite what he deems to be Google’s own good works while offering that he nevertheless hopes the Click Forensics deal will be a Yahoo differentiator.
Yahoo’s open to click fraud auditing IS a big differentiator. I asked Davis: If Yahoo has pre-audited itself and is awaiting the release of IAB’s click measurement standards for audit implementation, does that signify that there is a general audit consensus within the IAB regarding audits, but one or more major players are thwarting final approvals?
Davis offered no insights into why Yahoo is ready to go with audits, while his IAB colleague Google is silent on whether it will submit to the (still in-development) IAB click fraud auditing procedures, or not.
Click fraud auditing silence may be golden for Google, but it is potenially costing Google’s advertisers’ their own pots of gold.
PLUS: DONNA BOGATIN LAUNCHES STARTUPALPHA.COM: SILICON ALLEY ENTREPRENEURSHIP CELEBRATED
DONNA BOGATIN is the Founder & CEO of STARTUP ALPHA
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