Ingrid Nielsen's blog

Spotting SEO Fraud

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A great article from InsideCRM on how to identify fraudulent SEO offers before they hit you in the pocketbook -- filled with real world examples.

A Post-Holiday Look at Marketers' Holiday Cards

It may seem odd to say, but the holiday greetings that I received from sundry and assorted vendors, business partners and acquaintances left me feeling less than cheery, festive, happy or blessed in 2007. It actually bothered me enough that I felt the need to write about it. A couple of my top peeves:

Lack of Personalization – these were the holiday cards that were stuffed into preprinted envelopes, no signature, no note, and the return address did not contain an individual's name. I received a fair number of these from companies whose connection to me, or my business was hazy at very best. These cards left me feeling that some poor salesperson somewhere had been given a Holiday Card Mailing Quota (does that even exist?) and was forced to dig into the bottom of their desk drawer for business cards from trade shows long ago.

Blatant Self Promotion – These bothered me the most, as I am a true blue, dyed in the wool holiday celebrating fanatic. That said, I think that holiday greetings should be just that about the holidays. A marked example came in the form of an eGreeting from company X who provides CRM solutions (I think anyway, I am not sure what my connection is to them) – when I clicked to get my “personalized” snow globe, I was greeted with nothing more than an extended Flash ad for the company – and it didn’t even run properly in Firefox. I will grant that it had snow and my name was in the ad.

Why Should I Care? – I classified into this category those holiday greetings I received that were nothing more than a company’s recital of how successful they were that year – I am so happy for them, but unless I, or my business, was instrumental to that success I don’t think it is really an appropriate holiday greeting.

All said, I did receive some great, personalized greetings from people I knew well, or had just met. One of my favorites was from a company called Acquisio, it was an eGreeting that came with a personalized note. The card itself (which ran in all browsers) was lighthearted and actually allowed me to put faces to the names of people I had never met.

In all, I categorize my holiday card disappointment as one where too many marketers were speaking to themselves as opposed to me – this has fueled one of my New Years resolutions for 2008 – to make sure that my, and my clients’ work speaks clearly, contextually and concisely to the intended audience, and not to our marketing egos…wish me luck:-)

To Buy Brand Terms or To Not Buy Brand Terms

That is the hot topic of the day in Paid Search Marketing. I came across a great article from Chris Copeland the other day looking at both sides of the equation. The short answer is "yes" something I whole-heartedly agree with. You can read the full article here (free subscription required)

Who Clicks on Banner Ads?

A fascinating study posted today by Dave Morgan (via Online Spin)  examines whether or not the web users who click on ads are representative of the online commmunity as a whole. What did they find? Ninety-nine percent of web users do not click on ads on a monthly basis. Of the 1% that do, most only click once a month. Less than two tenths of one percent click more often. Who are these “heavy clickers”? They are predominantly female, indexing at a rate almost double the male population. They are older. They are predominantly Midwesterners, with some concentrations in Mid-Atlantic States and in New England. What kinds of content do they like to view when they are on the web? Not surprisingly, they look at sweepstakes far more than any other kind of content. Yes, these are the same people that tend to open direct mail and love to talk to telemarketers.

A Quick Primer on Click Fraud in Paid Search Marketing

Over the last year, understanding and managing paid search click fraud has become an industry hot topic. With talk of multimillion-dollar settlements and irreparable damage to large brands, it is not surprising that many companies are now taking a deeper look.

Clear Ink works with our clients to help them understand, and appropriately manage, any exposure paid search programs may have to click fraud. The type of business and products, competition for keyword inventory, cost of inventory, and target markets are just a few considerations when examining risk factors for click fraud. The following is a top-level examination of the most common types of click fraud, along with an exploration of risk factors and potential safeguards.

Understanding your company’s potential exposure to the risk of click fraud – as well as deciding on appropriate safeguards – can be challenging. Confusion often stems from the nebulous definition of click fraud. Click fraud is commonly defined as “the act of purposely clicking ad listings without intending to buy from the advertiser.” However, the methods and motives behind click fraud are varied, loosely fitting into five groups.

Five Types of Click Fraud

1. Premeditated Abuse: Repetitive clicking on a competitor's paid link to deplete their marketing budgets and lower rankings.
2.
Jamming: Intentional inflation of PPC prices to force a competitor to pay an artificially high cost per click, causing them to exhaust their budgets quickly.
3.
Competitive Roadblocks: Use of a competitor’s trademark or brand name, thereby diverting visitors to an alternate web site and offering a competing product or service.
4.
Made for AdSense (MFA): Creation of shell sites that display PPC ads, which are then clicked on repeatedly to generate income.
5.
Negligence: Perceived or real negligence on the part of PPC providers, allowing above items 1 through 4 – or any combinations of these items – to occur.

Examining the Methods, Motivations, and Preventive Measures

1. Premeditated Abuse
Exposure: Low

Methods and Motivations
Premeditated abuse may be carried out by a focused competitor with the time and resources necessary to find and click on your PPC links all day long. While this can happen in any business segment, our experience indicates that smaller B-to-C retailers are most likely to experience this type of click fraud.

Top-Level Preventive Measures
PPC providers have very sophisticated technologies in place to detect false or empty clicks. While they can’t reveal all the checks in place for obvious reasons, most of these types of clicks are never charged or reported to advertisers. In addition, PPC providers perform secondary security audits to identify, and – if necessary – credit, dubious clicks that may have gotten past the automated click-fraud detection systems.

Specific Preventive Measures
  • Placing a budget cap on campaigns assure that questionable patterns are identified and serious damage is avoided.
  • Working with an SEM provider who can quickly identify changes in overall campaign performance through active management is very effective.
  • If a company is at risk for click fraud, purchasing fraud software or services is a good option. A lower-cost option is a line-by-line scan of web logs for suspicious activity which can then be used as documentation to pursue refunds/credits.
2. Jamming
Exposure: Low to Medium

Methods and Motivations
Jamming may be carried out by a competitor with questionable business ethics and with a large budget, knowledge, and resources. Jamming can occur in any business segment, but it is more likely when there is heated competition for keyword inventory. The challenge is that since the majority of search PPC models are based on an auction system, the advertiser is by default responsible for managing how much they are willing to pay for a click. As such, Jamming is not prohibited or monitored by PPC providers

Top-Level Preventive Measures
We suggest active and ongoing monitoring of bid and campaign performance to identify potential jamming and adjust bids or business accordingly.

Specific Preventive Measures
  • An SEM program built around a bottom-line cost per acquisition is the best preventive measure. This assures that keyword bids are placed based on ultimate value to a company, as opposed to rank – effectively eliminating your ability to be jammed.
  • For advertisers in high-risk keyword segments, we recommend purchasing automated, around-the-clock PPC bid management software.
3. Competitive Roadblocks
Exposure: Medium to High

Methods and Motivations
In this type of click fraud, competitors set up roadblocks by using another company’s trademark or keywords to drive users to an alternate web site, featuring the competitor’s products or services. This was considered an acceptable practice by many companies and SEM providers until early in 2005, and still occurs with some frequency today – despite being considered bad practice.

Top-Level Preventive Measures
There is no established legal recourse to stop a company from purchasing a competitor’s terms as keywords. However, PPC providers are starting to take a harder look at this issue and formulate guidelines.

Specific Preventive Measures
  • Establish trademarked protection paperwork with Google and Yahoo!. Although this is a long and cumbersome process, it will ultimately stop a competitor from using trademarked terms in ad copy.
  • Applying best practices in the construction and execution of an SEM program is often the best defense. This promotes the best possible relevancy and quality ratings from the engines themselves and better placement in search results.
  • Many companies are often unaware that competitive roadblocks are being used by their SEM provider. A simple phone call to a counterpart at the “offending” company may prove very effective.

4. Made for AdSense (MFA)
Exposure: Low to Medium

Methods and Motivations
An MFA is a shell site, which consists of a few deep pages of content on a single topic. The sole purpose of an MFA is to attract and display high-revenue PPC ads. Inherently, MFAs are not fraudulent. They only become fraudulent when the creator of the MFA clicks on his own ads – or sets up a network of fraudulent clickers – to increase revenue. Because successfully setting up this type of click fraud is highly complex, time consuming, and risky, it is not a common practice. Those industries and advertisers with expensive PPC inventory are the most likely targets for MFA click fraud.

Top-Level Preventive Measures
Same as in other areas.

Specific Preventive Measures

  • The best defense is constructing a campaign that focuses on bottom-line business objectives and cost per action.
  • Ongoing and active management of metrics will quickly identify anomalies. Additionally, analyzing the performance of an SEM campaign holistically as well as locally (e.g. distribution channel) is also a good defense.
  • Since this level of fraud can only occur with content matching, choosing not to advertise on those channels is the ultimate protection. Click fraud protection software and services may be able to detect fraudulent click patterns above and beyond what the search engines provide.
5. Negligence
This is what we hear about the most – multi-million dollar lawsuits leveled at the big PPC providers. Plaintiffs are equally made up of large brand names and start-up software companies (who interestingly offer click fraud solutions). At the core of all these suits is that the PPC provider/search engine in question did not “do enough” to protect the plaintiff from one, or all, of the forms of click fraud described here.

The question remains, is click fraud an escalating issue that could reduce (or eliminate) PPC search engine marketing rapidly growing popularity and success? Or, will it become and known, and manageable “spoilage” number that marketers will accept, as has happened in many other direct response channels? Or, as many of the recent lawsuits we have read about suggest, be eliminated entirely?

Conclusion
While we can’t predict the future (with great certainty) click fraud does exist in many forms today, and can cause damage to an online marketer’s budget and program. Having a program that is well designed, is actively monitored, and uses the appropriate level of safeguards is the best possible approach. Consider all costs and tolerances when setting up an SEM program, focus results as tightly as possible to end actions (either lead quality or sales), and then monitor on a regular and ruthless level. These actions ensure that if your SEM programs do become a target for click fraud, you are well positioned to identify and act without losing ground or wasting dollars.

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