Click fraud is a type of online ad fraud. It happens when someone deliberately clicks on pay-per-click (PPC) ads without any real interest in the product or service. The goal is usually to drain advertisers' budgets or artificially increase publisher revenues. This deceptive practice costs businesses billions of dollars each year.
Also see our complete guide to click fraud for a fuller explanation.
How click fraud works
When advertisers run PPC campaigns, they pay for each click on their ads. Fraudsters exploit this by generating fake clicks in several ways. They might use automated bots, click farms with real people, or malware-infected devices.
Some competitors even hire people to repeatedly click on their rivals' ads. This depletes the advertising budget quickly and wastes money.
Common types of click fraud
- Bot-generated clicks from automated software
- Manual clicking by individuals or click farms
- Competitor sabotage through repeated clicking
- Publisher fraud to increase ad revenue
- Malware-driven invalid clicks
Signs of click fraud
Several indicators can suggest click fraud is happening. You might notice unusually high bounce rates or very low conversion rates. Multiple clicks from the same IP addresses or clicks at suspicious times could also indicate fraud.
Impact on businesses
Click fraud has serious consequences for advertisers. It wastes advertising budgets on fake traffic. It skews marketing data and makes campaign optimization harder. Many businesses end up making poor decisions based on fraudulent data.
Protection against click fraud
Businesses can take steps to protect themselves from click fraud. Using click fraud detection software helps identify suspicious patterns. Setting up IP exclusions and geographic targeting can reduce fraudulent clicks. Regular monitoring of campaign metrics helps spot unusual activity early.
Legal implications
Click fraud is illegal in many jurisdictions. It's considered a form of cyber crime. Advertisers can take legal action against those who deliberately generate fraudulent clicks. Major advertising platforms also have policies against click fraud.
See also: ad fraud
