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Saturday, October 13, 2007

AdSense Clickbots On The Rage?

Panda Software reported that it has discovered a clickbot network used to create fake-clicks targetted at pay-per-click advertisements. The computes infected by Clickbot.A are connected to a number of webservers. Owner of the botnet can then monitor and control the botnet from there, including the page URL, number of clicks, etc.

?PandaLabs has detected a network of computers infected with the bot Clickbot.A, which is being used to defraud ?pay per click? systems, registering clicks automatically and providing lucrative returns for the creators. According to the data collected so far, the scam is exploiting a global network comprising more than 34,000 zombie computers (those infected by the bot).?

Commenting on the story, Publishing2 did an interesting (albeit exaggerated) calculation to predict the extent of the damage.

10 clicks/day X $1/click X 34,000 computers X 365 days = $124M annual fraud
100 clicks/day X $1/click X 34,000 computers X 365 days = $1.2B annual fraud
100 clicks/day X $5/click X 34,000 computers X 365 days = $6.2B annual fraud


Now, someone smart enough to create a botnet of 34000 computers will not run all at the same day. Probably only about 1% or 340 of the clickbot is running at any one day. 10 clicks a day? Probably. But 100 clicks/day is a tad too much. Coupled with an almost non-existant conversion rate, 100 clicks a day will raise too much red flags.

With Google’s smart pricing, the cost per click will drop to a low figure, probably less than 10 cents/click.

So, what we get here?

10 clicks/day X 10 cents/click X 340 computers X 365 days = $125 K annual fraud; just peanuts compared with Google’s multi billion dollar revenue.

What Is AdSense Clickbot

A bot is common parlance on the Internet for a software program that is a software agent. A Bot interacts with other network services intended for people as if it were a real person. One typical use of bots is to gather information. The term is derived from the word “robot,” reflecting the autonomous character in the “virtual robot”-ness of the concept.

Put simply, clickbot is a specialized bot made to simulate clicking. Initially popular for gaming cheat, now clickbot has taken the highlight in pay-per-click advertisement business. In 2004, a California man created a clickbot that he claimed cannot be detected by Google. Failed to make good money selling the program, he tried to blackmail Google for $150,000 to hand over the program. He was arrested, nonetheless.

For computer savvy users, creating a clickbot is very simple and straight forward. You just need a macro to record your activities. While the macro is recoding, you visit your own site and click on the ads. Save the macro, and then let it run. Of course, you will also need a list of proxies to cover your track.

Fortunately for advertisers and honest publishers, Google is not stupid. With the huge amount of data that it has, Google can easily compile the most comprehensive proxy list on earth. In the AdSense report, clicks from proxies will add up to the number of clicks, but no money is credited to the earning. As you guess, when the proxy clicks exceed a certain number, your AdSense account is disabled.

Organised crimes handle this by having the clickbot software on many computers around the world, each with their own Internet Service Provider. Some of these software may be installed without the computer owners’ permissions or knowledge, via trojans and viruses. Or it might be installed voluntarily by the click-network members.

Beginning of this year, Greg Boser from WebGuerilla did an experiment to test the extent of click-fraud by using clickbot, with no conclusive answer. Some experts claims that click fraud accounts for up to 20% of the clicks, generating more than $1 billion in a year.

Whether or not the estimation is correct, one thing is sure. Google, Yahoo and other big players in the PPC advertising business takes click-fraud very seriously, and it will be just a matter of time when fraudsters are caught.

20 Google AdSense Tips

1. AdSense Earning = Impression-count x Click-though-rate x Cost-per-click x smart-pricing-factor.
2. Impression count is basically referring to your traffic. It means the number of times AdSense block is displayed.

3. Click-through-rate (CTR) is ratio of clicks per impressions. It can range from 0.1% to 30%, but most commonly around 1% to 10%.

4. Cost-per-click (CPC) is the earning you get per click. While traditionally it refers to the amount advertisers pay for each click, it can also mean the amount publishers get for each click.

5. Smart-pricing is AdSense method to determine how valuable clicks from your site is worth. If clicks on your site doesn?t provide good value to advertisers, e.g. from visitors? geo-location that seldom translate to sales, you will only get a fraction of the supposed CPC.

6. Apply for AdSense account via blogger.com for faster approval

7. Once you get your AdSense publisher code, you can put it any of your websites without requiring further approval.

8. Read and reread Google AdSense Program Policies and Terms and Conditions.

9. Don?t click on your own ads, or ask people to click, even if you are using proxies.

10. Don?t use click-bots.

11. Don?t encourage your visitors to click on ads. The only acceptable text is ?Sponsored Links? and ?Advertisements?.

12. Don?t put competitor contextual ads on the same page as your AdSense, for example: Yahoo Publisher Network, Clicksor. Non-contextual ads are ok.

13. Don?t put your ads on objectionable material, e.g. adult sites, gambling sites, mp3, etc.

14. Basically, don?t cheat AdSense. Google will catch you, sooner or later.

15. Viewing your on website will not get you banned. Just make sure you don?t click on the ads.

16. However, repeatedly reload your page to jack up page impressions can get you banned.

17. When in doubt don?t hesitate to contact the AdSense team. They are very helpful.

18. You can try highest paying keywords from cwire.org, but know before-hand that you?ll face very fierce competitions.

19. Use Overture Bid Tool and Search Engine Keyword Tool to find suitable keyword.

20. CTR isn’t everything. If your CTR is high but gives low conversion rate for the advertiser site, it will trigger AdSense smart pricing.

 

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