Funny Fraud

This morning, The Wall Street Journal carried a very interesting story by Kevin Delaney about online advertising auctions and "click fraud," when a "fraudulent clicker" clicks on a search ad with ill intent ("In 'Click Fraud,' Web Outfits Have a Costly Problem: Marketers Worry About Bills Inflated by People Gaming The Search-Ad System," WSJ, April 6, 2005; Page A1).

"Something has to be done about this really, really quickly, because potentially it threatens our business model," according to the CFO of the largest search company.

The story also describes how advertisers bid for favorable placement. I wonder whether the auction for the bids is a blind one but I wouldn't be surprised if it was.

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Comments:

[Trackback] In this domain, people generally trust because they have no choice - a given marketing opportunity comes with a take-it-or-leave-it trust package. This is commodity trust. Introducing other forms of trust into this domain seems like a tough assignment.

Posted by TrustBlog on April 06, 2005 at 01:48 PM PDT #

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