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Randy Cassingham

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bullet  Robbing Peter to Pay Paul

A few weeks ago I grumbled in a newsletter about the lousy ads I was getting on one of my sites, which were bringing a whopping 4.8 cents per click. I said "I may try Bing ads instead if Google doesn't get me better [ads] soon."

A reader I'll leave nameless replied, "So, when I go to the mugshot website you make four cents each time I just CLICK on an ad? That I all have to do? I could go there and click on every available ad and you would make 4 cents for each click? And then I could go out, enter again, do it all over and you would make more money? Or do the limit it to a certain number per person? Hey, I would be quite happy to spend some time each day (on the days I think about it) happily clicking on the ads on your site(s) if it would give you extra cash. Does it do the same on Jumbo Joke, Groxx et al? I just never before paid any attention to how money was made by sites."

It is one of the primary ways web sites make money, yes, but I definitely don't want you to go clicking on ads for the sole purpose of making me a few cents here and there: that's stealing -- someone has to pay for those clicks. Advertisers expect people to click on the ad if they're interested in the product or service offered. If you see an ad on any of my sites, or any other site, that interests you, then by all means support that site by clicking the ad to see what that advertiser has to offer.

But clicking on ads when you don't have interest has a name in the industry: "click fraud" -- they defraud the advertiser out of cash for no positive return on their investment. There are sophisticated methods for detecting click fraud, and while you (almost certainly!) won't end up in jail, you won't help the site, either -- and you could hurt it. When click fraud is detected, the clicks are discounted (ignored).

It can really hurt the advertiser, too -- and that's sometimes what the perpetrators are hoping for. What's one way to hurt a competitor? Click on his ads to cost him a good chunk of profits without giving them any business. It can be enough sometimes to push a competitor out of business, so this is serious stuff. Like using spam (a way to get "advertising" for free by stealing the resources to send it), it's an unfair and unethical way to get ahead online.

It doesn't always work anyway: not all ads are "pay per click". Some pay only on some action (e.g., you fill out a form so a salesman will call), others pay only on a sale. So just clicking may not do anything for the site. And other ads are paid by the "impression" -- just showing it may earn the site a fraction of a cent whether you click it or not. Bottom line: it really isn't worth it to try to outsmart the system to create a false reward for the site (or a false cost to a competitor), so again the advice is: only click if you're actually interested.

One of the positives of online advertising is that it's more "targeted" toward what you want. If you visit home improvement sites, which indicates an interest in fixing up your home, you'll probably be pitched on home improvement-related products and services, and that's great: you may find something you'd like that you wouldn't otherwise have learned about. A company in a small niche who might not be able to afford advertising on TV found you, and you found them -- a win-win scenario.

Some people resent online ads, thinking they get in the way of what they want out of a visit to a web site. Some ads are intrusive, popping up windows, flashing in your face, etc., and I understand that: those irritate me, too, and my business philosophy is to treat others the way I want to be treated, so I don't allow those kinds of ads on my sites. But some people fight all ads with "ad-blocking" software, and that's really sad: the trade-off for a site being free is usually that there are ads there to pay the costs of running the site (and, hopefully, some sort of living for the owner). You come and take the entertainment or information, but don't even give the ads a chance to offer you something of interest, so the site owner gets nothing. Some web site owners call that stealing, too; I simply call it unfair. But the bottom line is, that's why so many web sites fail, going under so you can't get the information or entertainment anymore, and that's a lose-lose scenario.

So, do you see the balance here? Some want to click ad after ad solely to support the site, others want to block ads. Both are wrong ways to do things. If you don't like flashy or pop-up ads on sites, punish the owner by not going back. If they treat you well by being respectful of your eyeballs, then at least glance at the ads once in awhile as you visit and see if the site's advertisers are offering something that you're interested in -- and if so, then should you click on the ad for more information. Fair enough?

- - -

Oh, and things did improve: once the site found its legs, the clicks got more lucrative -- by about 10x as much (so far this month, anyway). There are still not enough clicks to actually pay for my assistant to research and write up the mug shot posts, let alone bring in profit, but I have a long-term outlook: hopefully over time it will build to an acceptable level -- or maybe that site will join so many others on the "gave it up and quit" list....

Most Recent Comments

Posted by Barry - Goshen, NY on March 23, 2010:

Web browsers such as Google obtain all IP addresses through the use of cookies. These allow these browsers to place a limit on the number of payable clicks any IP address user may make in any single day. Click fraud used to be an issue in days gone by, but isn't any more.

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You don't have a very good understanding of how things work (or, at least, didn't describe it accurately). Google doesn't need any special element added to a browser (or even a cookie) to count clicks: if the ad is displayed, they know what IP address it's displayed to. Counting the clicks from an IP is one way to detect click fraud, but it's hardly a perfect solution, since some ISPs (notably AOL) reuse IPs frequently on the one side, and on the other, scammers can rotate through as many IPs as they need to avoid that level of detection. A complete solution is much more sophisticated. -rc

Posted by erica, rome on May 1, 2010:

What you are asking, Randy, is that I run your software on my computer.

Okay, it may not literally be _your_ software, but it is Javascript that has been fed to my browser as a result of my visiting your site.

Any Javascript could contain malicious elements; and, as previous comments here suggest, ads are an attractive vector for malware purveyors. So ads (or the software that implements them) are more likely to be unsafe than the other software served from an otherwise trustworthy site.

Therefore, one of two conclusions:

1. the website user must take extra care in allowing ad-serving software to run; and the safest way for most non IT-savvy people to do that across the board is to ban ads altogether.

2. to make an outright ban not the safest approach, the ad vendors and the ad servers (ie you, Randy) need to put in place active steps to guarantee the quality (and non-maliciousness) of your software....Perhaps add some certificates to assert the software has been tested/inspected for malware; my browser would then happily run ad software with a valid certificate from a recognized certifying authority. I'd expect the ad serving parties (you, Google, Bing, the cert auth, etc; work out who is responsible among yourselves before implementing certificates) to pay the costs of any damage to my machine if a certified ad was a malware vector.

Basically, there is no trust in the ad industry. You could start to change all that. Maybe make some more money by making ad blockers a thing of the past too.

Posted by Aidan, United Kingdom on May 29, 2010:

Randy: not gonna happen. Ad networks have been delivering malware on a regular basis for years now. Preventing it would require actually checking the ads they run, and that's just not economical for the big ad networks.

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Though I spend about 10 hours/day online, and DON'T run an antivirus program, I've never, EVER had a virus. Yet you claim that the ad networks spread them. I just have to think this is unfounded paranoia. -rc

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