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Click-Fraud: Is it really a problem?

DaleKingDaleKing subscriber Posts: 141
edited June 2008 in Marketing
Pay-per-click advertising is the most popular and successful form of advertising on the internet. But it has a bane: Click-fraud. And it`s a real and legitimate problem. Or is it? Depending on who you ask, click-fraud estimates range from 10%-30%. But let`s compare that to the negatives of other marketing methods.
 
If you advertised in an online ezine or newsletter that has a readership of 100,000, does that mean all 100,000 subsribers are going to see your message? No. Here`s why. Because of e-mail filters and unopens, approximately 25%-75% of subscribers are never going to see your message.
And if you did a direct mail campaign and sent out 10,000 pieces, approximately 95-99% of those who receive your message are going to throw it in the trash without even opening the envelope.
And if you advertise in a general audience medium like your local newspaper, most of the circulation is going tio be wasted, because the majority of the readership is not going to be interested in your offer.
The point is there is no perfect advetising method. There just isn`t. There are pros and cons, positives and negatives, advantages and disadvantages - regardless of what advertising method you choose to use.
However, smart, educated marketers plan for and adjust accordingly for those various factors.
Dale King
DaleKing6/3/2008 2:45 PM

Comments

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    DaleKingDaleKing subscriber Posts: 141
    Great points about online advertising Dale.  
     
     
     
    Thank you, Charlie!
     
    Dale King
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    bertbert subscriber Posts: 12
    Dale, I agree with your thoughts on click fraud.  I would like to add that click fraud is more of a problem with some providers of the service than others.  I have run into services that have fraud as high as 40-70% and the providers do nothing about it.  When you stick with the majors this becomes more like you have described and drives your point home.  I also think services like spyfu.com is more of a threat to an Internet marketing budgets than click fraud.
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    DaleKingDaleKing subscriber Posts: 141

    Dale, I agree with your thoughts on click fraud.  I would like to add that click fraud is more of a problem with some providers of the service than others.  I have run into services that have fraud as high as 40-70% and the providers do nothing about it.  When you stick with the majors this becomes more like you have described and drives your point home.  I also think services like spyfu.com is more of a threat to an Internet marketing budgets than click fraud.
       Good points all, Bert. Thank you for your contribution to this thread! Dale King
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