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To: KeepItSimple who wrote (6811)	1/30/2006 4:21:05 PM
From: Lizzie Tudor	Read Replies (3) \| Respond to of 15851

According to webmasterworld, GOOG tracks the number of clicks from one IP address in a 20 minute period and if the amt of clicks goes over some threshold, those clicks get refunded by the buyer.

To: KeepItSimple who wrote (6811)	1/30/2006 4:39:03 PM
From: Trader J	Respond to of 15851

But what you are failing to understand is that it is largely a supply and demand issue. Click fraud, being what it is and some unknown % is already factored into pricing to a very large degree. Advertisers already know what to expect from ads based on click through rates that result with purchases. If you take away click fraud, will GOOG's revenue go down sharply ... probably yes, but you can also bet that their ad pricing would rise to match it. To the advertiser it is apples to apples. You could then make an argument that it would push advertisers to the second tier providers, but that doesn't play either because you need to be where the eyes are. Just like house investing is location, location, location ... so is ad spending. You have to spend the most to get the most. If you drop back to a second tier, you get second tier. I don't disagree that click fraud is a substantial major catalyst, but not because of what it represents to GOOG or to advertisers, but how it is interpreted by the investing public. The truest form of ad. revenue probably finds a system whereby the source gets paid upon transaction. That flies in the face of traditional advertising and I don't see that working with this model. Even if it did, you can expect that GOOG is still going to make their money. The only real threat to GOOG right now is competition from two secondaries getting into bed together (YHOO and MSFT), some sort of ad. model shift in technology that opens up the field, or just slow saturation over the next 3-5 years. The ad. model is old business as far as Im concerned ... GOOG has won that war and will keep a decent foot hold on it. I am much more interested in their other rollouts that will dictate whether they can become the next MSFT. Tj