Google loses $1billion a year - GoFuckYourself.com

Elli · 09-19-2007, 01:09 PM

Holy crap! I mean, I knew it was bad, but that's just ridiculous!

http://www.cbc.ca/money/story/2007/0...2.html?ref=rss

Google says it loses $1 billion a year to false ad clicks
Last Updated: Friday, March 2, 2007 | 1:40 PM ET
CBC News

Google Inc. loses about $1 billion US a year to "click fraud" or other invalid click-throughs on its ad service, the company says.

Advertisers have been asking Google for a clearer picture of the reach and effectiveness of their ads.

Google's AdWords service brings together advertisers and websites willing to display their ads. Advertisers pay Google a fee based on the number of click-throughs, and site operators receive a commission for each time that a visitor clicks on an ad.

Special software that can click on an ad repeatedly can be used to inflate a rival company's advertising costs or boost a site operator's own revenue gained from displaying the ads.

"Our invalid clicks rate ? the activity rate ? has remained in the range of less than 10 per cent of all clicks every quarter since we launched AdWords in 2002. At Google's current revenue rate, every percentage point of invalid clicks we throw out represents over $100 million [US per] year in potential revenue foregone," Shuman Ghosemajumder, Google's business product manager for trust and safety, wrote in a post to the company's Inside AdWords blog late Thursday.

Google does not charge its advertisers for clicks it determines to be invalid. For example, if 10 out of 100 clicks were excluded Google would not charge its advertisers for the invalid clicks, cutting into the company's revenue.

(more at url)

Tanker · 09-19-2007, 01:10 PM

Damn thats a lot of change

headless ghost · 09-19-2007, 01:14 PM

there goes the price of the stock

Metalsound · 09-19-2007, 01:16 PM

And how much money did they earn for Adsense?

Vick! · 09-19-2007, 01:20 PM

Ask them to send me $1million and I will quit my share of click-fraud.

WiredGuy · 09-19-2007, 01:27 PM

I don't see how those are losses, its competition or automated bots that are clicking these ads and the advertisers shouldn't be charged. It doesn't translate into losses, just invalid clicks unless Google is paying for these clicks (ie: adsense), but I imagine Google isn't paying out on invalid clicks.
WG

inabon · 09-19-2007, 01:32 PM

pay per click = obsolete

i thought they would have learned from porn

09-19-2007, 01:09 PM	#1
Elli Reach for those stars! Industry Role: Join Date: Apr 2003 Location: Vancouver, BC Posts: 17,991	Google loses $1billion a year Holy crap! I mean, I knew it was bad, but that's just ridiculous! http://www.cbc.ca/money/story/2007/0...2.html?ref=rss Google says it loses $1 billion a year to false ad clicks Last Updated: Friday, March 2, 2007 \| 1:40 PM ET CBC News Google Inc. loses about $1 billion US a year to "click fraud" or other invalid click-throughs on its ad service, the company says. Advertisers have been asking Google for a clearer picture of the reach and effectiveness of their ads. Google's AdWords service brings together advertisers and websites willing to display their ads. Advertisers pay Google a fee based on the number of click-throughs, and site operators receive a commission for each time that a visitor clicks on an ad. Special software that can click on an ad repeatedly can be used to inflate a rival company's advertising costs or boost a site operator's own revenue gained from displaying the ads. "Our invalid clicks rate ? the activity rate ? has remained in the range of less than 10 per cent of all clicks every quarter since we launched AdWords in 2002. At Google's current revenue rate, every percentage point of invalid clicks we throw out represents over $100 million [US per] year in potential revenue foregone," Shuman Ghosemajumder, Google's business product manager for trust and safety, wrote in a post to the company's Inside AdWords blog late Thursday. Google does not charge its advertisers for clicks it determines to be invalid. For example, if 10 out of 100 clicks were excluded Google would not charge its advertisers for the invalid clicks, cutting into the company's revenue. (more at url) __________________ email: [email protected]

09-19-2007, 01:10 PM	#2
Tanker Confirmed User Industry Role: Join Date: Nov 2000 Location: Oakville, Ontario, Canada Posts: 9,287	Damn thats a lot of change __________________ Tanker ICQ 3427575 CCBTools Now featured in the CCBill.com APP STORE

09-19-2007, 01:16 PM	#4
Metalsound Confirmed User Join Date: Mar 2005 Location: Right now . . . Everywhere Posts: 880	And how much money did they earn for Adsense? __________________ There are more important things than money . . . BUT THEY COST TOO MUCH

09-19-2007, 01:20 PM	#5
Vick! Confirmed User Industry Role: Join Date: Nov 2005 Location: 20 00'24.00" N, 75 09'00.00 W Posts: 6,882	Ask them to send me $1million and I will quit my share of click-fraud. __________________ Affordable Quality Web Hosting

09-19-2007, 01:27 PM	#6
WiredGuy Pounding Googlebot Industry Role: Join Date: Aug 2002 Location: Canada Posts: 34,485	I don't see how those are losses, its competition or automated bots that are clicking these ads and the advertisers shouldn't be charged. It doesn't translate into losses, just invalid clicks unless Google is paying for these clicks (ie: adsense), but I imagine Google isn't paying out on invalid clicks. WG __________________ I play with Google.

09-19-2007, 01:14 PM	#3
headless ghost Confirmed User Join Date: May 2005 Posts: 893	there goes the price of the stock

09-19-2007, 01:32 PM	#7
inabon Good Old Fat Webmaster Industry Role: Join Date: Jul 2002 Location: Boquete, Panamá Posts: 970	pay per click = obsolete i thought they would have learned from porn