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To: KeepItSimple who wrote (7346)2/11/2006 10:44:10 AM
From: ChinuSFO  Read Replies (2) | Respond to of 15857
 
What is clickfraud. Is it an investigation? Who is going to say that there is clickfraud going on? Any commission, any committee in place?



To: KeepItSimple who wrote (7346)2/11/2006 12:15:31 PM
From: Lizzie Tudor  Read Replies (1) | Respond to of 15857
 
I do understand it Kissie. I know you know I understand it.

I will say again that advertising as it traditionally works should , theoretically be an impression based business on the internet. Additionally, internet advertising, if based on traditional media advertising in terms of cost per effectiveness, should already be a 50 billion dollar industry if we were talking about the same value advertisers see out of their advertising buck.

The overall advertising market is 320 billion in the US alone. The internet advertising business is 11 billion. And yet, we are at a point where internet advertising's effectiveness today, with only 3% penetration is more effective than all the money spend with other channels for some industries.

Instead of impressions or blind broadcast hoping the blind squirrel finds the nut, the internet advertising media relies on "clicks", not as a way to overcharge customers but as a way to undercharge them. Way more people see the ads than click on them, on GOOG pages.

That is the secret sauce that all of this click fraud hysteria misses. You do realize, of course, that Barrons and everyone has been harping on click fraud for years and nobody has paid any attention? Why do you think that is?

The PPC model is self correcting. If advertisers feel they get no value, they don't bid- simple really. And yet, GOOGs already huge business is growing almost 100% per year.

I doubt this Barrons article will have much effect, although the front page Google logo washing down the drain is pretty effective, but the content of the piece is the same old same old.

You realize, of course, that Barrons does this to every hot stock. Its old hat. I wonder if they will stoop to interviewing Fred Hickey again, they sometimes do that (haven't read the complete article yet).

Unfortunately Kissie has experience in the PORN industry which is not a barometer of internet advertising effectiveness. There isn't any real branding in porn or is there.