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Google AdWords Now Displays Click Fraud Stats

Written on
July 26th 2006
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This week, Google AdWords advertisers will now be able to get invalid click data with their Campaign Performance and Account Performance reports. The new section displays both the number and the percentage of clicks that Google’s automated system has deemed invalid. Google doesn’t charge advertisers for false clicks. The new addition comes as Google continues to mop up after the Lane’s Gifts class action lawsuit, which Google settled and agreed to compensate AdWords click fraud victims up to $90 million for charges incurred by click fraud.

According to a study by Outsell, click fraud cost the ad industry more than $800 million last year. The AdWords click fraud stats are a way for Google to be more transparent about the way they handle the problem. Now advertisers can look directly to Google, instead to a third party researcher, to find out how many of their clicks are bad. The click fraud data displayed by AdWords only goes back to January 1, 2006.

Despite the transparency, Google is limiting the amount of click fraud information distributed to the public to keep click frauders from reverse-engineering their click fraud detection algorithms. Last week, independent researcher Dr. Alexander Tuzhilin of NYU released a report saying that “Google’s efforts to combat click fraud are reasonable.”



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