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Yahoo Appoints Exec to Combat Click Fraud

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March 22nd 2007
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In an effort to combat click fraud within its web search advertising business and reassure its advertiser base, Yahoo appointed Reggie Davis yesterday as the senior executive in charge of the manner.

A former associate general counsel for Yahoo, Davis, who will be the first person in this position focused on marketplace quality, defended the company in click fraud lawsuits filed against it.

Yahoo also noted that it discards 12 to 15 percent of the time Yahoo users click on its advertisements, which advertisers do not get charged for. Google had similar findings last month, when its computers found that up to 10 percent of potential advertising billings came from invalid clicks.

“We need to take some of the inconsistency out of this issue,” said Davis in a statement.

Google and Yahoo have dealt with class-action suits arising from click fraud discrepancies, all suits have been settled by both parties.

Davis’s new responsibilities will be to provide advertisers with a clear understanding of how Yahoo’s system works in both display and search. Click fraud, traffic quality, network placement and other marketplace quality issues will be other areas that Davis will oversee, along with providing search ad customers with more insight into how their ads perform.

“We want to take the heat out of this issue around click fraud,” he said. “Everything on top of that will be used to define the competition. We really want to focus the issue on who is doing a better job around quality.”



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