Waste $ 800 million per year for fake

Picture 1 of Waste $ 800 million per year for fake According to a report released on July 5, just last year, advertisers spent $ 800 million on fake clicks and the error was dumped on Google and Yahoo.

The investigation, conducted by Outsell, an American market research firm, analyzed fake clicks that are "rampaging" on Google and Yahoo over the past few years. Both Google and Yahoo have recently had to settle lawsuits related to fake clicks, although their problems with this phenomenon are still persistent.

According to the report, advertisers said they believed that 14.6% of the clicks were fake and 75% of advertisers said they were victims of this phenomenon at least once. The loss of fake clicks has forced 27% of advertisers to reduce or stop maintaining ads based on clicks.

10% of other advertisers said they plan to cut down on advertising spending, which means 37% of advertisers are cutting back on spending on ads they pay based on clicks.

" If we have 37% of advertisers who cut costs or plan to cut costs for pay-per-click ads, we'll see the total cost of advertising based on clicks. will decrease by 12%, "said Chuck Richard, Outsell vice president.

The 12% reduction in the cost will correspond to Yahoo and Google will lose $ 500 million in revenue.

The online advertising market is expected to earn $ 15.6 billion in 2006, up about $ 10 billion from 2005, of which Google accounts for about 25% and Yahoo accounts for about 20% of the market.