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Another Click Fraud Lawsuit Brewing

There's little question on which side of the click fraud debate Wired columnist Adam Penenberg resides. In describing the problem and one case that's slowly moving forward, Penenberg writes this: "Don't count on the search engines to confront the problem, though. Sure, they pay lip service to cleaning up click fraud, and issue credits — not refunds — to businesses they identify as having been victimized by false clicks. Usually, however, these refunds are a pittance compared to the revenue click fraud generates for them." Yow. That's strong, and possibly actionable, language. Search companies protect fraudulent clickers because they don't want to lose the revenue? I doubt that Penenberg has the sources to back up that astounding and damaging claim.

Moving on, the column describes a case of click fraud that is being put together piece by agonizing piece. It involves two karaoke supply companies battling it out in the contextual search space, and is worth following. Penenberg reports that Overture (now Yahoo! Search Marketing) revoked the advertising status of one of the plaintiff karoake company without explanation, when that company's investigation allegedly got too close to the truth.

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