28 Jul 2006
Google has had its proposed $90m settlement in a click fraud case approved by a US state judge.
The agreement came after years of wrangling over legal action first brought by Lane's Gifts and Collectables in February 2005, and later changed to a class action suit comprising more than 70 objections.
Google had been accused by several companies of not doing enough to protect advertisers from 'click fraud' in which advertisers are falsely charged for channelling clients to their websites.
The search firm charges advertisers a fee every time a user clicks on an ad displayed on the company's website.
Google has since improved security and brought in new features which ensure that advertisers get more details regarding their Google ad accounts and any invalid click activity.
Under terms of the settlement Google will have to give advertising credits worth $4.50 for every $1,000 spent on advertising on its website.
Miller County Circuit Judge Joe Griffin approved the settlement as "fair, reasonable and adequate".
Yahoo settled a similar case brought in California earlier this year.
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Do you agree?
Why we all have to fight Click Fraud
I believe Click Fraud is more of a danger to existing Google AdSense publishers who are honest than Google. I also read about eBay promoting click fraud with allowing people to place dishonest ads. Shame on eBay! I believe Google has created tremendous value with Google AdSense. Google and Google AdSense Team should be congratulated for such achievement. Let me show you how I mean this. Here is my reasoning: First, I like to pose this question: How much is your website worth if you generate revenue from Google AdSense? Let's say your website makes a good $30 per day on average. This is how we calculate the value of your website: Yearly income = $30 x 30 x 12 = $10,800.00 Value of the Website= $10800/interest rate = 10800/.05 = $200,000 (this is assumed that the income will never end and is good for ever. Of course if the income grows, the value will be even more). I like to emphasize that the Valuation formula is only valid if the income is for indefinite period of time. If Google AdSense, for one reason or another changes or stopped, this formula is no longer valid. What might make it stopped or changed? The answer is click fraud. How many websites do you think make over $30 per day? If the answer is say 10,000. Then total value created is: 10,000 x $200,000.00 = $2,000,000,000. That is more than $2 Billion. Google should be congratulated for creating such a wealth. I strongly believe not many honest AdSense Publishers are aware of this value. If they knew, they would be more protective of the existing AdSense system and the integrity of the AdSense system. Hence, I believe Google should plan a campaign to educate the honest Publishers of such value and the fact that Click Fraud can jeopardize this value. If the Honest AdSense Publishers recognize this value and also recognize the danger that such value could be jeopardized by Click Fraud, they will take action. This might relieve Google from Burden of fighting Click Fraud alone. I suggest AdSense Publishers boycott eBay. We must fight along Google to eradicate Click Fraud. I have one last suggestion for Google AdSense Team to fight click fraud. Google should run ads in eBay pretending to be Ukraine advertisers that promote click fraud. If dishonest publishers know that there is a possibility that they are actually talking to Google to deal on Click Fraud, this will end eBay's business.
Posted by: corey 28 Jul 2006