- Natural Search Blog - http://www.naturalsearchblog.com -

Click Fraud Costs Estimated at over $800M

In Report: Advertisers Cut Spending, Blame Google and Yahoo for Click Fraud [1], a new report states that advertisers wasted over $800 million last year on phony clicks.

Some points of interest:

I predict that this fraud perception will fuel advertisers increasing reliance on natural search, where click fraud is not incentivized.

Will click fraud be the catalyst that finally causes retailers to more equally allocate their spending between PPC (pay per click) and NSO (natural search optimization)? So, for example, shift from $1MM/yr PPC and $150k on NSO, to more like $1MM/yr PPC and $1MM/yr NSO?

As PPC gets more expensive, the act of click fraud gets more costly, and that bad apple must begin to spoil the bucket at some point – not completely I’m sure, but probably enough to cause advertisers to rethink allocation and importance of NSO.

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