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Technology Stocks : Alphabet Inc. (Google)
GOOGL 297.84-2.8%2:07 PM EST
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To: KeepItSimple who wrote (7369)2/11/2006 3:41:52 PM
From: Stock Farmer  Read Replies (1) of 15857
 
KIS, nobody is claiming Click Fraud doesn't exist.

You think click fraud is a crippling problem. I don't.

Let's start with Google's real competitors, like print advertising. Print advertising runs on the "pay-per-thingy" basis.

It is well known that 95% of print advertising dollars end up in the recycling bin, the vast majority without even being glanced at.

In the law of large numbers, when you make 10,000 impressions and only 500 end up being looked at by a human being, does it matter where the other 9,500 impressions went? You still pay per impression. You're not paying $X/thousand impressions with the expectation of getting 1000 people in your store for $X. You're paying that $X with the expectation of getting 50!

Same with online.

OK, so a few nerds of the new economy with no advertising experience didn't expect the same thing to happen on the Internet... Oh well, they were wrong. The end result is the same. In fact, there is a legitimate argument to be made that click-fraud performs a useful economic function.

It's real. It's pervasive.

But it's not a death knell to advertising.

Maybe wake the thread up when click fraud has reached the point where 95.1% of clicks don't deliver real traffic to the web-site. Then Google will have a problem that its competitors don't have.

Until then, it's business as usual in the advertising arena.
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