Click fraud is an internet crime in which a person, computer program or automated script clicks on an internet ad for the sole purpose of generating a pay-per-click charge with no interest in the ad's subject matter and target link. Some spammers generate hundreds to thousands of dollars in income every month by fraudulently increasing the number of clicks recorded by online ads. Others may click maliciously to drain a competitor's advertising budget. The phenomenon has become so widespread that the government is getting involved, classifying such internet fraud as a felony.
Pay per click (PPC) advertising has many legitimate uses. As a service to customers and a minor revenue generator, web masters include advertisements on their web pages with links to the advertiser's home site. Each time a user clicks the link, a fee is generated which the advertiser pays the web master. Unfortunately, unscrupulous entrepreneurs are abusing the system, turning it into their own personal gold mine. The internet is now flooded with sites that exist for the sole purpose of providing a home base for PPC ads. The sites offer no services or information; they simply direct you to other sites. Each time you click on a link, the web master of the host site earns a fee from the advertiser. Spammers can target these sites, using automated bots or low-cost foreign labor to scan the site repeatedly, increasing site traffic and fees. The fees may be small; but with the high volume, they add up quickly.
Advertiser-paid search advertising is a burgeoning market, expected to grow 25% this year to $3.2 billion. Click rates have also increased to an average payment of 45 cents per click. Abuse has become so widespread that major internet ad providers Google and Yahoo are starting to police their own. Google just sent out pink slips to a large group of owners of low conversion Made for AdSense (MFA) sites, notifying them that their sites will be terminated on June 1, 2007. The effort should create a healthier internet advertising environment on the web, benefiting both users and advertisers.