Eric Schmidt: "fake clicks" is normal
During his speech at Stanford University, Google’s executive director said that the Pay Per Click (PPC) contextual advertising model is self-correcting for “fake clicks”. That is, the issue of fraud is not a serious threat to the effectiveness of the PPC model. According to Schmidt, the advantages of PPC are more important than disadvantages. The main advantage of PPC is the ability to accurately record clicks and a detailed analysis of advertising campaigns.
In combination with the auction system of buying keywords, the PPC model has an inherent property of self-correction. When asked what could have happened if Google didn’t fight this type of fraud and the “fake clicks” had spread much, Eric Schmidt replied that in this case the cost that the advertiser would pay for advertising would decrease, that is, the price would decrease these clicks themselves. Thus, an automatic correction would occur in the system. “In fact, the ideal economic solution is here: not to stop the situation from developing,” said Eric Schmidt.
According to the logic of Eric Schmidt, it turns out that fraud with clicks is a normal phenomenon with which it is not even necessary to fight. His thesis on the “ideal economic solution”, in fact, opens the green corridor to fraudsters.
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Google's foes may say that fraud can be resolved in any other market in the same way. From an economic point of view, the market will simply respond with a change in supply and demand, and the price will be adjusted for the level of fraud - and this is supposedly normal. According to the logic of Eric Schmidt, advertisers should consider the level of “fake clicks” as the natural level of the “unfavorable environment” in which they conduct business. Moreover, it can be initially included in the economic calculations of the effectiveness of an advertising campaign.
Well, for Google it is a very convenient position. After all, it is no secret that the company receives indirect profit from the "false clicks" in its advertising network. For her, this is an additional source of income. In this case, the company is constantly trying to distance itself from the problem of fraud. Even the need to combat the "fake clicks", it turns out, can be questioned.
However, according to Eric Schmidt, programmers at Google are still interested in an interesting problem that is very difficult to solve. “Because it’s a bad thing, because we don’t like it and because, at least in the short term, it creates some problems, we are trying to find and fix it,” said Schmidt.
According to independent analysts from Outsell, the economic damage from fraud with fake clicks on the Internet exceeds $ 1.3 billion. Among all the referral links, on average, 14.6% are fake.
In combination with the auction system of buying keywords, the PPC model has an inherent property of self-correction. When asked what could have happened if Google didn’t fight this type of fraud and the “fake clicks” had spread much, Eric Schmidt replied that in this case the cost that the advertiser would pay for advertising would decrease, that is, the price would decrease these clicks themselves. Thus, an automatic correction would occur in the system. “In fact, the ideal economic solution is here: not to stop the situation from developing,” said Eric Schmidt.
According to the logic of Eric Schmidt, it turns out that fraud with clicks is a normal phenomenon with which it is not even necessary to fight. His thesis on the “ideal economic solution”, in fact, opens the green corridor to fraudsters.
')
Google's foes may say that fraud can be resolved in any other market in the same way. From an economic point of view, the market will simply respond with a change in supply and demand, and the price will be adjusted for the level of fraud - and this is supposedly normal. According to the logic of Eric Schmidt, advertisers should consider the level of “fake clicks” as the natural level of the “unfavorable environment” in which they conduct business. Moreover, it can be initially included in the economic calculations of the effectiveness of an advertising campaign.
Well, for Google it is a very convenient position. After all, it is no secret that the company receives indirect profit from the "false clicks" in its advertising network. For her, this is an additional source of income. In this case, the company is constantly trying to distance itself from the problem of fraud. Even the need to combat the "fake clicks", it turns out, can be questioned.
However, according to Eric Schmidt, programmers at Google are still interested in an interesting problem that is very difficult to solve. “Because it’s a bad thing, because we don’t like it and because, at least in the short term, it creates some problems, we are trying to find and fix it,” said Schmidt.
According to independent analysts from Outsell, the economic damage from fraud with fake clicks on the Internet exceeds $ 1.3 billion. Among all the referral links, on average, 14.6% are fake.
Source: https://habr.com/ru/post/4147/
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