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Google Agrees to Pay $90mln on Click Fraud Lawsuit 132

Hitokiri writes "Google has agreed to pay up to $90 million to settle a class action lawsuit 'Lane's Gifts v. Google'. The settlement stems from a lawsuit filed by Lane's Gifts earlier this year in an Arkansas state court and is designed to settle all outstanding claims against Google for fraud committed using its pay-per-click ad system back to 2002Google has made a statement on their blog."
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Google Agrees to Pay $90mln on Click Fraud Lawsuit

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  • Deceptive (Score:4, Informative)

    by celeritas_2 ( 750289 ) <ranmyaku@gmail.com> on Wednesday March 08, 2006 @10:33PM (#14880294)
    Honestly, RTFM poster. Google says it will give advertisers who believe they are victims of click fraud up to 90 mil in advertising credits.
  • by LiquidCoooled ( 634315 ) on Wednesday March 08, 2006 @10:34PM (#14880305) Homepage Journal
    Also, they say its not just for Lane's Gifts.
    It is a 90mln limit based on how many people apply for backdated invalid clicks.

    From the blog linked above:


    For all eligible invalid clicks, we will offer credits which can be used to purchase new advertising with Google. We do not know how many will apply and receive credits, but under the agreement, the total amount of credits, plus attorneys fees, will not exceed $90 million.
  • Re:Measuring Results (Score:5, Informative)

    by M0b1u5 ( 569472 ) on Wednesday March 08, 2006 @10:43PM (#14880332) Homepage
    We do things differently on the web. Your suggestion **IS** used by some advertisers, but I suspect it is not too popular.

    On the web, all you have to do is create different landing pages for each of your adverts. These are unique, and the stats speak for themselves.

    Using decent server side code, it's also possible to distinguish which advertisement your actual purchasers arrived from, and this is quite prevalent amongst serious e-commerce businesses.

    If your IT department isn't all that good, you can splurge big time on a very sophisticated WebTrends account, which will do all this stuff, and a lot more besides.

  • Bullshit (Score:4, Informative)

    by XMilkProject ( 935232 ) on Wednesday March 08, 2006 @11:18PM (#14880452) Homepage
    This story is complete bullshit, It doesn't even begin to represent the truth. For those that didn't RTFA, let me paraphrase:

    Google usually allows advertisers 60 days to claim invalid clicks and recieve a refund for those clicks. Google has made a deal wherein they will allow advertisers to make invalid click claims going all the way back to 2002, and offer advertising credits for all of these clicks. Google does not yet know how many invalid clicks will be reported, but under the terms of the agreement the maximum credit given will come to a total of no more than $90 million.

    So in other words, this posting is either FUD or just bullshit, and Google isn't paying anything, but rather offering advertising credits.
  • Re:Measuring Results (Score:1, Informative)

    by dotdan ( 902253 ) on Wednesday March 08, 2006 @11:33PM (#14880496)
    An alternate option is to log the referer. @OP: If you have a site, go into your control panel and check out your web stats. You should see a nice list of referring websites. Most general scripts can get the same info and record it to a database, where lots of nice statistics can be printed out. It's a lot easier than it sounds.
  • by neodiogenes ( 930950 ) on Wednesday March 08, 2006 @11:35PM (#14880500)
    1. It is possible to measure click fraud. There are certain statistics that can be used to calculate its effect quite accurately, even if they can't be used to determine it on a per-click basis.

    2. This may be true but in the end the value of a click is the choice of the consumer. People clicking accidentally on a Google ad is no different from people "accidentally" hitting the remote in the middle of a Bud commercial and missing the second half of the 30 seconds. These accidental clicks are factored into the overall effectiveness of the ad.

    3. Most small business might be in the honeymoon, but not large businesses. Most of these are looking very seriously at the bottom line, and finding it's lower than they expected.

    4. At the per-click rates customers pay for certain terms, yes I believe it. Compared with other forms of advertising paid search is turning out to be an incredible value. The main question is how much Google and Yahoo can continue to fine-tune the targeting to squeeze out that much more revenue.

    --- not a Google fanboy as such, but convinced online advertising is where the money is at.
  • Click Fraud Facts (Score:5, Informative)

    by JehCt ( 879940 ) * on Thursday March 09, 2006 @12:04AM (#14880666) Homepage Journal

    Click fraud runs about 40% when noobs manage a Google Adwords account. Much of that comes from Adsense via the Google content network, because it's a way for webmasters to line their pockets at the advertisers' expense. Competitor click fraud happens too.

    The ways to control click fraud are:
    1. Set low bids on the content network. Click fraudsters pick on the richest bids.
    2. Exclude sites from the content network that show below average conversion rates.
    3. Use your own tracking URLs to double check Google's conversion figures.
    4. Don't show your ads in cheap offshore locales. Some sleezebags have set up click fraud offices in these places where people are paid to surf and click on your ads.

    Discount your bids to account for the cost of click fraud. As long as you are happy with your net cost per conversion, click fraud is just a cost of doing business. Your bids are lower, Google earns less. If Google wants to earn more, they should the eliminate fraud.

  • by twitter ( 104583 ) on Thursday March 09, 2006 @12:14AM (#14880710) Homepage Journal
    You might follow their links.

    here [blogspot.com] and here [google.com].

    They answer your questions.

    Google wants you to get good value for your money and are doing it in their usual excellent way.

  • by Animats ( 122034 ) on Thursday March 09, 2006 @12:21AM (#14880733) Homepage
    For all eligible invalid clicks, we will offer credits which can be used to purchase new advertising with Google. We do not know how many will apply and receive credits, but under the agreement, the total amount of credits, plus attorneys fees, will not exceed $90 million. -- Google blog.

    All this is costing Google are the legal fees.

  • by Anonymous Coward on Thursday March 09, 2006 @12:24AM (#14880747)
    Imagine your mother on the Internet

    For what I use the Internet for .... uh ... no thanks.

  • Re:the going rate (Score:2, Informative)

    by smaddox ( 928261 ) on Thursday March 09, 2006 @02:59AM (#14881241)
    Slashdot has a banner at the top?

    Man, i didn't know people still had to put up with that crap. I just assumed once AdBlock became so prevalent they just got rid of it.

    Anyways, if you dont know what adblock is, you dont belong on slashdot. However, if you can't get Adblock to work like it should, you should check out http://www.pierceive.com/ [pierceive.com].

    It will cover all of your adblock list needs. It even has an autoupdater, so you can stay up to date, even if your forgetful like me.

    What did people do before firefox?
  • No... (Score:2, Informative)

    by x2A ( 858210 ) on Thursday March 09, 2006 @03:44AM (#14881344)
    Clicking with the only intention being costing the advertiser money is what you'd call illegal clicks. For example:

    "I get paid x per click of this ad, so I'm going to click it lots to get money from the advertiser"

    or

    "My competitor pays x per click of this ad, so I'm gonna click it lots to eat away at their marketting budget"

    or even

    "I'm going to cost [google] this customer, by clicking on this advert lots, but never buying anything. The advertising company will see their [google] clicks aren't translating to sales, and will stop advertising there".

  • by grazzy ( 56382 ) <(ten.ews.ekauq) (ta) (yzzarg)> on Thursday March 09, 2006 @04:20AM (#14881426) Homepage Journal
    No, it's not as good as cash. 80% of that money goes straight back to google's pockets. Most of the ads end up on google.com anyway.

Neutrinos have bad breadth.

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