…Google is secretive. This started as a deliberate marketing mystique, but endures today more
as a really annoying company habit. Google folks don’t understand why the rest of us have a problem with this, but then Google folks aren’t like you and me. The result of this secrecy and Google’s "almighty algorithm" mentality is that the company makes changes — and mistakes — without informing its customers or even doing all that much to correct the problems. It’s all just beta code, after all. But the business part is real, as is the money that some people have lost because of Google’s poor communication skills combined, frankly, with poor follow-through.
First there is click fraud. Google makes its money when people click on Google ads, but some of those clicks are fraudulent — are not honestly intended to gain information or to buy products. Click fraud generally comes in two varieties that I’ll call "buy" and "sell." An example of buy-side click fraud would be my little sister religiously clicking on every Google ad on this page (What? We have no Google ads?) in the mistaken belief that doing so would make me some money. It is mass clicking by a single person without an intention to actually buy or even to gain information. Sell-side click fraud would be one advertiser clicking on the ads of a competitor with the intention of costing that competitor money without increasing their sales. Both types of click fraud ought to be detectable, and in fact, Google says it already detects the 10 percent or so of clicks that are fraudulent (Business 2.0 magazine says it is more like 30 percent), and adjusts the bill before the advertiser even knows what is happening. PBS | I, Cringely . May 25, 2006 - The Rich Get Richer
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Linked by adsensical on Saturday, June 3rd, 2006