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Originally Posted by woj
They don't really lose any $$ from click fraud, it comes out of advertiser's pockets... and actually the more click fraud there is, the more google makes...
so it's not THAT obvious that eliminating click fraud will increase profits in any way....
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from another board:
For the sake of argument, assume click fraud is real and does account for 50% of Google's ad sales. Yet, still the advertisers buy the ads. Why? Because for them the metric is advertising cost per sale or new customer, not percentage click fraud.
So, 50% click fraud says that if click fraud were eliminated, google could simply double their prices and the advertisers would still find it cost-effective. Sorry, but click fraud won't bring down google (not that you'd find me buying the stock at these prices).