Exposing click fraud: This is why I think that, ultimately, pay-per-click business models are flawed for the advertisers.
[…] some marketing executives estimate that up to 20 percent of fees in certain advertising categories continue to be based on nonexistent consumers in today’s search industry.
[…] Human operations can be more difficult to detect because a wide network of people can click on ads from different computers across many regions, without a steady pattern. According to a report in the India Times, residents are being hired to click paid links from home, with the hopes of making between $100 to $200 per month.
I think the future is pay-for-performance (the advertiser only gets paid if someone actually puchases something).
This is an evolution, but so was the original pay-per-impression model that’s slowly vanishing these days. I remember when pay-per-impression began to lose favor, site owners protested by saying, “But that’s how it works on TV and radio…”
However, with those mediums, you can’t easily measure performance. With the Web, you can. That fact led to the demise of per-per-impression, and I think it will eventually lead to the demise of pay-per-click too. Pay-for-performance is pretty foolproof — the merchant doesn’t pay until they have cash in hand, and that’s hard to spoof.