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Thursday, December 16, 2004

Google CFO: Fraud a Big Threat
A top Google official said that growing abuse of the company's lucrative sponsored ad-search model jeopardizes the popular Internet search engine's business. "I think something has to be done about this really, really quickly, because I think, potentially, it threatens our business model," Google Chief Financial Officer George Reyes said Wednesday. Reyes, speaking at an investor conference sponsored by Credit Suisse First Boston, was referring to an illegal practice known as "click fraud" that occurs when individuals click on ad links that appear next to search results in order to force advertisers to pay for the clicks.

In cost-per-click advertising, marketers pay a search engine like Google when users click on links to the advertisers' Web sites. Google and others also generate revenue by posting sponsored ad links on other Web sites and splitting the fees generated by user clicks.

Who'd have thought?
# Permalink Posted at 2:42 AM 6 comments Email this Link

Comments on this Item:

I've been told there are people in CyberCafes in India who are paid to click on ads for hours at a time.
I also know how the model works and I'm sick of seeing ebay and nextag pop up for ALMOST EVERY SEARCH I do on google, so if I have a second or two I click them so they have to pay.
I also admit I've clicked google ads on websites I like who could use the money (like this one). Probably not the best thing ever.

# posted by Anonymous 6:27 AM

Todd, I'm not going to judge you. I've always believed that a person should follow his or her conscience --in some cases, as any times as possible.

# posted by Bill 8:34 AM

I read your article titled "Google's Senseless AdSense Program" and I must take Google's side on it. Fraud as perpetrated by you would cause Google financial problems. I'm glad they "smacked" you down, as you put in your article.

# posted by Anonymous 10:41 AM

Todd, before you through around actionable terms like "fraud" I would urge you to think this thing through with the brain inside your head instead of the other one.

Fraud: "Deceitful conduct designed to manipulate another person to give something of value by (1) lying, (2) by repeating something that is or ought to have been known by the fraudulent party as false or suspect or (3) by concealing a fact from the other party which may have saved that party from being cheated."

Do you look in store windows as you walk down the street? Do you look at newspaper ads when you read the paper? Have you ever checked out the cars on a dealer's lot? If so, and you think we committed fraud, then you are guilty yourself.

# posted by Bill 11:34 AM

Hello,

I like to invite you to read my analysis at Iconocast.com and click on Google matter.

Corey

# posted by ckkatir 6:24 PM

Corey, there's an old and only slightly odd bit of reasoning that says no matter how many intelligent people you gather together, once they become a group, their collective IQ can be expressed by their average IQ divided by their number.

# posted by Bill 9:42 AM

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