Click Fraud Rate Climbs to 16.6 Percent for Fourth Quarter 2007

Click Forensics, a company that certainly benefits from press about high click fraud, has come out with another scary statement: Click Fraud accounts for more than 28% of clicks on content networks, which I assume means AdSense and similar types of syndicated networks. The overall rate of fraud is more than 16%, the company claims.

Some of key findings from the report include:

• The overall industry average click fraud rate rose to 16.6 percent for Q4 2007. That's up from the 14.2 percent click fraud rate for the same quarter in 2006 and 16.2 percent for Q3 2007.

• The average click fraud rate of PPC advertisements appearing on search engine content networks, including Google AdSense and the Yahoo Publisher Network, was 28.3 percent in Q4 2007. That’s up from the 19.2 percent average click fraud rate for the same quarter in 2006 and 28.1 percent for Q3 2007.
• The 2007 industry average click fraud rate grew by 15 percent over the industry average click fraud rate for 2006.
• Q4 2007 click fraud traffic from botnets was 15 percent higher than click fraud traffic from botnets in Q3 2007.
• In Q4 2007, the greatest percentage of click fraud originating from countries outside North America came from India (4.3 percent) Germany (3.9 percent) and South Korea (3.7 percent)

"In 2007 we saw a significant jump in the industry average click fraud rate when compared with the average rate for 2006," said Tom Cuthbert, president and CEO of Click Forensics. "As the FBI and USAToday have reported, fraudsters are using more sophisticated means to perpetrate click fraud, including infiltrating mom-and-pop e-commerce sites. As a result it's more important than ever before for advertisers, publishers, ad networks and search engines to cooperate and share data in order to stem what’s on target to be an even worse problem in 2008."

See more here: Click Forensics