Quote:
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Originally Posted by Gottis
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).
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That sounds great in theory, but in practice it may not work our like that. Lets say for example for certain keyword google charges 10 cents per click, and overture charges 5 cents with 50% fraud. Without having any knowledge about click fraud (you don't), buying traffic from overture seems like a better deal. It's pretty much same logic as why $25/signup pps sponsors are less popular than $30+/signup sponsors, payouts could be better with $25 sponsor, but yet if you do a poll on gfy you will find that most wouldn't promote a $25/signup sponsor.