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."
Wired had a nice piece a few months ago on this (Score:5, Interesting)
Re:Wired had a nice piece a few months ago on this (Score:5, Funny)
I want to post an insightful response, but Google Girl has stonewalled my thoughts.
must....post...insightful...can't...resist...
Re:Wired had a nice piece a few months ago on this (Score:1)
Re:Wired had a nice piece a few months ago on this (Score:2)
Re:Wired had a nice piece a few months ago on this (Score:1)
warning, not suitable for office environments.. unless your home office.. god damn she's incredible.. ehehehehe
this affirmed my belief (Score:2)
Point of interest (Score:2)
The January/2006 Wired had an article titled "How Click Fraud Could Swallow the Internet"
Just a point of interest here, the only thing click fraud is going to swallow is google. The rest of the internet will get by just fine. Honestly the only types of online advertising I would pay for would be fixed fee (and I'd only try that for a short period to see results) or affiliate advertising, where clicks are attributed to referrers and tracked directly to sales. When sales are made, the referrer gets a com
It's credits - not dollars (Score:5, Insightful)
Am I the only one who recognizes the difference between "getting paid $1" and "getting credit for $1 - at that company"?
Re:It's credits - not dollars (Score:5, Informative)
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:It's credits - not dollars (Score:5, Insightful)
Well, that must reduce the amount a little, surely...
Re:It's credits - not dollars (Score:5, Funny)
Bidding prices for the adwords "lawyer" and "class action" jump into the thousands.
Re:It's credits - not dollars (Score:2, Funny)
Re:It's credits - not dollars (Score:3, Insightful)
Now Lane's Gifts just need to set up an advertising agency, and its clients will advertise via its account (and credits) on Google.
Re:It's credits - not dollars (Score:3, Informative)
it's 50% - not 80% (Score:1)
Re:it's 50% - not 80% (Score:2)
Re:It's credits - not dollars (Score:5, Funny)
Plus, if Google is clever, they'll get just some guys to click on the ads bought with credit and use up that $90 million in no time...
Re:It's credits - not dollars (Score:3, Insightful)
Re:It's credits - not dollars (Score:1)
Re:It's credits - not dollars (Score:2)
Re:It's credits - not dollars (Score:2)
Re:It's ALL credits - not dollars (Score:1)
Gold standard? Gold is just as worthless. Yes, it has industrial uses.. but it's value is not set by industrial use. It's set by scarcity, and percieved value, just like dollars, or yen, or most other major currencies.;
If you feel your dollars are worthless, please, send them my way.
Re:It's ALL credits - not dollars (Score:4, Insightful)
Cash is an abstraction of value. It's value comes from the fact that it's mutually recognised as having a value. That's where it's value comes from, a common-agreement. You find *anything* that people are just as willing to exchange for services/resources as money. Gold's "worthless" unless you can find someone who's willing to exchange it for something you want (eg, sex). A pig's useless if you're living with vegie hippies (not that they have money anyway).
Money means not having to look long and hard for someone who's willing to trade with you. This means you have time for other things. Money is an abstract representation of time ("time is money" is true). There is no way, by the furthest stretch of imagination, that you can say time is worthless. It's the most valuable thing you've got.
Re:It's ALL credits - not dollars (Score:2)
That, and the tin foil gloves make it hard to type a 200 character password without error.
Re:It's ALL credits - not dollars (Score:2)
Tip of the iceberg (Score:5, Interesting)
Reasons why I'm concerned about Google's business:
Cue Google-fanatic flamewar.
And in other news... (Score:5, Funny)
Re:Tip of the iceberg (Score:2)
Re:Tip of the iceberg (Score:3, Insightful)
There are people out there who have a hard time working the remote control for their TV. When these people go on the Internet they use "Internet Explorer" with no updates and they don't even know there are alternatives to it. Imagine your mother on the Internet to get an idea who's looking at the pop-ups desperately trying to figure out how to close that (or any other) window.
Imagine advertisments that don't suck. (Score:1)
Yeah, TV and IE both suck life, so I avoid both. In the IE case, I also avoid the sub par software under IE, aka Windows, which is
Re:Tip of the iceberg (Score:1, Informative)
For what I use the Internet for .... uh ... no thanks.
Re:Tip of the iceberg (Score:2)
Re:Tip of the iceberg (Score:1)
Re:Tip of the iceberg (Score:1)
How about a comma or two, so we can understand your sentence?
Re:Tip of the iceberg (Score:3, Insightful)
Google ads work because they're shown to you while you're actually looking for them.
Re:Tip of the iceberg (Score:5, Informative)
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.
Re:Tip of the iceberg (Score:1, Troll)
Re:Tip of the iceberg (Score:1)
What, essentially, is the difference between RC cola and Coke/Pepsi? Most people (myself included) don't even know what RC cola tastes like because they've never tried it.
Why haven't they tried it? I think it comes down to marketing and advertising. That's why coke and pepsi make millions/billions of dollars each year, and RC cola would be lucky to get 1% of what they do.
You argued against your own argument by bringing up coke/pepsi and RC cola.
Re:Tip of the iceberg (Score:2)
I don't know about you, but building a a company that made 6 of your 'relatives' hit the top 15 richest people in the world isn't that shabby.
Value per dollar belongs to Word of Mouth. it's true that 'paid' advertising can promote a lot of things, but at the end of the day it's no
Re:Tip of the iceberg (Score:1)
Re:Tip of the iceberg (Score:2)
You're right, but I wonder (Score:3, Insightful)
I'll try not to be Mr. Obvious here, but consider this: when companies buy time on TV, they have no idea how effective those ads are. What I mean is, they can see the ratings for the TV show and you can guess how many people saw those ads based on the ratings, but that is no guarantee anybody actually watched the commercial, and even if they did, you
Re:Tip of the iceberg (Score:1)
Still brings them a customer. That's the point. Accident or not, they still go to that site.
Re:Tip of the iceberg (Score:2)
Each lead (submission form with name, number, address request for more info etc) that came through cost us about $15 a piece. That's not what we were paying per click, but by the time we paid for all of the people who clicked on and just browsed the site without submitting information, and by the time all of the fradulent clicks were factored in, it came out to $15 a pop.
Not what we want, but it is a lot better than
Measuring Results (Score:4, Interesting)
Is there any reason why internet ads do not do this?
Re:Measuring Results (Score:2)
Pretty soon, two trends will effectively offer these kinds of discounts. First, Yahoo and MSN are going to start giving you discounts/prizes for searching on their sites. Second, look for companies to expand on A9's current idea of giving you a couple percent off things you buy at Amazon if you use their searc
Re:Measuring Results (Score:1)
Come on, think!
Re:Measuring Results (Score:5, Informative)
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.
Re:Measuring Results (Score:1, Informative)
Re:Measuring Results (Score:2)
but does it also tell you howmany of those people went on to buy somthing right away?
how about people who used google to find you, checked out your product but only came back a week later, using a bookmark, and then bought your product?
referers give you a good basic idea of where people are coming from, but if you want more than that, you'll have to do the stuff that sounds a bit harder.
Re:Measuring Results (Score:1)
I'm not sure about Google specifically, but there have been plenty of ads like this. Really, it's about different flavors of advertising. Some adverts simply want to get the name of the prod
Re:Measuring Results (Score:1)
Is there any reason why internet ads do not do this?
Because they don't need to ask you, they already have that information -- each time you click on a link that takes you to their site, the webserver can log the referrer URL. With a search engine, the referrer URL will contain bot
Deceptive (Score:4, Informative)
Re:Deceptive (Score:3, Funny)
What manual? Did I wander into a Linux IRC help channel?
Re:Deceptive (Score:1)
What manual? I think you mean "RTFA".
OT: Your name reminds me of an incident last semester in Latin I: The teacher was explaining his simple test on how to tell if a word is abstract or concrete(so you know whether the ablative of means or manner applies to it): Can you put a bunch of it into a bag and bash somebody's head in with it? Of course, his example happened to be "speed", and the class burst into laughter. Just because the Romans didn't have methamphetamines don't mean the
the going rate (Score:2)
cribot.com [cribot.com]
Re:the going rate (Score:2, Interesting)
actually... (Score:1)
Scroll to the bottom of the page (Score:1, Informative)
Re:the going rate (Score:1)
Oh yeah, that's right, I vaguely recall seeing one, before I added the following to my adblock list sever years ago (or so it seems):
http://.falkag.net/* [falkag.net]
http://ads.odsn.com/* [odsn.com]
I'm not sure if that was all, I'm looking in the list of blocks, and I seem to recall those being the ones, there might have been more/different ones though.
I've got about 75 different blocks, and it seems to clean up most of the internet.
(Email me if you want the list).
Re:the going rate (Score:1)
I even sometimes click a few that I am interested in.
Re:the going rate (Score:2, Informative)
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 be
Re:the going rate (Score:2, Interesting)
Re:the going rate (Score:2)
(Hint: people will continue to make fun of you until you put your link in the sig where it belongs.)
$90 million / number of adsense users = aiaiai (Score:2, Interesting)
Bullshit (Score:4, Informative)
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.
$90mln? (Score:4, Funny)
What's wrong with calling 90 Megabucks $90M ?
Unless people are worried about conflicting with powers of two, but in any case that should be denoted: $90Mi, or 90 Mibibucks.
Or does mln denote "Millions of dollars worth of in-store advertising credit", which another poster has pointed out is what the plaintiff is receiving.
Mebibi (Score:2)
Re:Mebibi (Score:1)
Total number of ads stays the same... what happens (Score:1, Insightful)
Re:Total number of ads stays the same... what happ (Score:1)
No, you pay per-click, if your clicks go down, then the amount that you will have spent with google will by extension go down. You'd only want to stop advertising with google if your clicks weren't translating to enough sales.
How the ads work (Score:1)
A bunch of people write an ad, and bid on a keyword, stating how much they're willing to pay for a click. When someone searches for that term, Google shows ads based on (1) how much people are bidding at that time, and (2) how many clicks those ads have gotten in the past (so dud ads don't get shown after a while).
If Google gives up to $90 mil of advertising credits to advertisers, what will happen is:
1) For recipients who already advertise, they'll probably ad
Click Fraud Facts (Score:5, Informative)
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.
Great News (Score:2, Interesting)
Personaly i have seen hundreds if not thousands of tracking erros
For example a user clicked on our Ad 10 times in less then 5 seconds, and then another user clicked on it 5 times in less then 1 second.
Thank the lord for timestamps !
Google Obviously Has The Leverage (Score:3, Interesting)
For the finance folks out there wondering how we'll account for this, we can say that the attorneys' fees (which will be determined by the judge) will be charged as an expense, most likely in the first quarter, once the amount is determined. The credits will be recorded as a reduction to revenue in periods in which they are redeemed.
Anyone who is acting like Google isn't paying enough doesn't understand either economics or the american legal system (notice I didn't say justice system). They may understand the difference between right and wrong (and I don't think Google is right), but they fail to understand "the way things work in the real world."
No, Google is not paying $90 million. (Score:4, Informative)
All this is costing Google are the legal fees.
Re:No, Google is not paying $90 million. (Score:2)
All this is costing Google are the legal fees.
That isn't true -- there are lost opportunity costs too, though in practice they certainly won't come out to anywhere near the $90mln number. They do exist, though.
Re:No, Google is not paying $90 million. (Score:2)
Nope. If they have to run a 'credit' ad to get it's clicks, then a 'paid' ad cannot be running. This is costing Google the income from paid aids that are replaced by cred
All I can say is... (Score:1)
...it's about time.
Lame (Score:4, Funny)
How about Overture aka Yahoo... (Score:3, Insightful)
Re:How about Overture aka Yahoo... (Score:2)
This does not catch competitors clicking on competitors, unless the competitors have off-shored the click fraud. Neither does it catch customers clicking on their own l
The problem with future immunity (Score:1)
If I were a GOOG shareholder, I'd say that sounded like a pretty damn good deal. I could care less if someone went to jail over it so long as the company didn't have to pay financially.
Adsense users are getting the shaft... (Score:2, Interesting)
Re:Adsense users are getting the shaft... (Score:2)
I've been sending Google AdSense one email every month or so (because they won't respond without 2 or 3 emails in a row) asking again for the same simple information: What did you see that constituted an invalid click? So far, they've been completely unwilling to answer this question. They
From a financial standpoint... (Score:1)
It will be interesting to see how that part of it filters out as the market is starting to show more scrutiny towards Google now that it's "rampant growth honeymoon" seems to be coming to an end.
Please, Google, defraud me!! (Score:2)
Not always click fraud (Score:2, Interesting)
Re:So how do I actually know? (Score:4, Informative)
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.
Re:So how do I actually know? (Score:2)
What I don't like about this proposed settlement is that it places the responsibility on defrauded adv
Simple (Score:1)
Re:WTF is "click fraud"? (Score:5, Interesting)
Re:WTF is "click fraud"? (Score:5, Interesting)
The problem is that Google is charging advertisers for adverts which were not seen (by humans).
I can understand that the advertiser feels cheated if Google charges advertisers for 1 million clicks on their adverts, but 999,000 of them were faked by a script and only 1000 times a human end-user clicked the advert.
The problem gets worse when companies are deliberately faking clicks to create huge advertising bills for their competitors, even though their adverts are not being viewed. Similarly angry customers could do this to 'get their own back' on a company that they feel has cheated them.
Google has a problem here and they need to fix it or people won't want to risk using their service to place adverts.
Re:WTF is "click fraud"? (Score:2)
Also, it depends on what Google's contract was. If Google said they'd bill some amount "per click-through", but it can be shown that nobody was actually clicking and Google billed the amount anyway, a court might say that Google owed the plaintiffs some damages. I'd guess that it's not *actually* fraud (in the criminal sense), though, unless Google had knowledge
Re:WTF is "click fraud"? (Score:1)
"So "click fraud" is running a script that will work fine with no mouse attached to the system, and without ever _clicking_ on anything?
If it's pay-per-click, you shouldn't be paying if no clicking is taking place!
Re:I simply cannot believe... (Score:1)
No... (Score:2, Informative)
"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
Re:Or... (more) (Score:1)
Also, if your prices are too outragous, or your website looks dodgy, peop
Intent (Score:2)
The idea is that intent == fraud. If I accidentally click...that's par for the course for click advertisin
mln (Score:3, Funny)
n mln = (10^-3) * ln(n). It's short for 'milli-log-natural'.