The fraud about Click Fraud

I normally don’t trust reports that are created by companies that just so happen to offer services that alleviate the issues pointed out in the reports. That’s why click fraud has not really been a big concern to me as long as I operated with tier1 search engines (Google, Yahoo, etc.) I’ve been using PPC for a lot of years and feel the tier1 engines have a lot more to lose by allowing click fraud than they do by implementing procedures to stop it. Tier2 engines are a different story for another post.

Google recently launched click fraud reporting in the adwords interface. It is pretty limited, but it’s a step in the right direction. Hopefully, they will open it up a bit more and allow us to get a bit more granular.

The new click fraud reports by themselves weren’t really postworthy, but Google’s recently released analysis of how third parties track click fraud certainly is. Among key findings about 3rd party cilck fraud audit companies are:

  • Failure to properly identify user’s browse behavior vs. actual ad clicks
  • Fictitious clicks generated across multiple PPC channels
  • Duplicated click activity within fraud reports
  • Severely overstated, fictitious clicks

For example, in one particular report from ClickFacts, there were 2261 reported events; however, over 1800 of these were duplicated events. In this same case, ClickFacts reported 6 unique click events and duplicated each one 9 times resulting in 54 “click fraud” events. when Google compared this to their logs, they found only a single click for the entire month from that IP address or search query and a charge of $0.57. Remember these reports come from the company that released widely published reports claiming industrywide 36% click fraud.

ClickFacts response to Google’s challenges was to limit the amount of data they submit to claim click fraud as well as to severely reduce their sample size for click analysis.

Another report from Adwatcher claimed the advertiser received about 12,000 clicks for the month;however, in actuality, the advertiser only received 6,800 clicks, of which 800 were attributed as invalid by Google.

The report was very interesting and an easy read. Of course, if you torture data enough it will surrender whatever you’re looking for, but I don’t believe it’s in Google’s long term interest to profit from click fraud, and as such, I believe they are going to a reasonable length to combat the reality of click fraud.

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Post-Katrina New Orleans is recovering slowly

I live about a 2 hour drive west of New Orleans and made my first trip to the area since the hurricanes of last September. I’m not sure what I expected, but I was surprised to see the French Quarter pretty much back to normal. Despite not getting flooded, there was a lot of construction going on in the Quarter. Must be a lot of Federal and Insurance money to go around for rebuilding.

I was very surprised at what was going on once I got out of the business districts. It’s as if no progress has been made in the residential districts. In the areas I visited, I would say 80% of the properties were abandoned and there seemed to be little effort to clean up. I really expected them to be further along by now. Despite total devastation, it’s been 9 months and you’d think the large sheets of roofing material would be removed from the oak trees at busy intersections. I spoke to a lady at Jacque Imo’s restaurant and she said there may be 3,000 people all trying to get the attention of the same adjuster.

New Orleans Home

Here’s a link to a few more photos I took of the area

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Google checkout conversion tracking

Here’s Google’s email reply to a request for Conversion Tracking with Google checkout:

…As for persisting analytics tracking, that’s something that isn’t possible with the way Checkout currently works.  However, we’ve heard loud and clear from many merchants that this is something that we need to somehow enable.  We have nothing to announce at this time, but we’re working on some things to address this particular problem…

Hopefully sooner, rather than later.

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Walmart.com’s Flub, I mean Hub

What happens when you violate theses #3 of the Cluetrain Manifesto.. “Conversations among human beings sound human. They are conducted in a human voice,” is you end up with WalMart.com’s “Hub”

WalMart is trying, and failing miserably, to jump on the Myspace.com bandwagon by building their own social networking site. They’re the annoying kid who always tries to interject in your conversation with one his own experiences that is in no way relevant to the discussion you were having. Not much social networking that’s going to happen in that environment.
Here’s an excerpt from Bob Garfield’s review at AdAge:

Here’s a sample Hub post from “Holly” — who happens not to be a random Hubster, but a child actress with grown-up ghostwriters. Bad grown-up ghostwriters. (Warning: If you are squeamish seeing others embarrass themselves, this would be a good time to turn the page.)

“Shopping will be my number ONE hobby this fall. I am going to be the most fashionable teen at school! I’ll be on the lookout for the latest fashions. From leggings to layers, to boots and flats, big belts and headbands! I’ll be looking for it all! Layering is SO IN right now. Hobo bags are also in style. OH! And big sunglasses! WHOO!! I don’t know where to stop! With all of the new clothes I’ll be getting, the kids at school will be begging me for fashion tips!

It won’t be long before executives at WalMart report to the board that that social networking concept sweeping the internet is just a crock and has no basis for longevity in the “real” world.

It’s sites like the Hub that are really clogging the tubes.

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Really off topic Youtube video

I’m not normally one to brag about my kids, but I love this video of my 1 year old, Emily. She loves to dance and she loves to spin around and make herself dizzy.

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My experience using Google Checkout as a merchant

One thing that has changed is the new Google Checkout. We’ve been working with GC (Gbuy as it was known in beta) for a while now. I really like the UI for the customer experience. Checkout is easy and pretty much painless.

On our backend, it is pretty straightforward and foolproof. Just a series of XML passing back and forth between us and Google updating the order status and injecting orders into our backend.

It has a lot more legs than MS Passport and I think it will prove to be a value add for Ecommerce in general, and particularly the consumer.

Having said all that, here are my issues:
Once a customer places an order, there is no way to edit the order. If the customer requests expedited shipping after the order was placed, you have to either give it (expedited shipping) away at no additional charge, or cancel the order and reprocess it in your internal order management system.

When an order is placed by the customer, their credit card/debit card is authorized to ensure available funds, and to hold such available funds. If the order is not charged within 3 days, Google will re-authorize the card and then capture the funds, resulting in 2 auths and a capture. This presents problems for debit card owners over weekends and holidays. Google stated that they are working on this to extend the timeframe for re-auth.

Orders tend to get in a state of “reviewing”, meaning the funds have not been authorized and the merchant cannot process the order, quite often. It seems these orders are being subject to a manual review. Based on customer feedback, I think this happens more often when the original auth fails and the customer has to go back and edit the credit card information.

Google has a Payment Guarantee Policy that should cover fraud as Google performs the AVS and CVN matches and doesn’t give the merchant any additional billing information. Some orders have a full match on the AVS and CVN, but Google still denies their eligibility for the Payment Guarantee Policy.

From Google:

“Google relies on a variety of proprietary systems–including internal data sources and advanced risk modeling–to evaluate the risk levels associated with transactions. If the risk level for a particular transaction is too high, Google will not cover the transaction under the Payment Guarantee Policy.”

These orders are still covered under the Chargeback Resolution Policy, but that does not guarantee you will receive your funds back for chargebacks.

The last drawback I’ll talk about, and it is big, is that there is no way to persist your website metrics through checkout. We use Omniture analytics and there is no way to report that a visitor that used Google checkout completed a transaction. There’s not even a way to use Google adwords conversion tracking in Google checkout. This results in a low conversion rate whereby, we have to do manual ‘cipherin’ to figure out the true conversion. I hope Google allows us to place code on the “thank you” page in the near future as this is a real pain in the ass.

Overall though, I think the product is great. Although it may be in beta for the next 3-5 years, they’ve already made some strong improvements to the product. I have high hopes for the future.

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MIA

Wow, its been a really long time since I’ve updated… My mind has been elsewhere on the job hunt at hand. A lot has happened since my last post. I’ll try to catch up over the next few posts…

Brandon

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The Value of Friendships

I was going through some of my old presentations and ran across a great piece that I had used as an idea starter at a marketing ideation meeting. I apologize to the original author as I didn’t make note of his/her name at the time; however, his/her points are well worth repeating:

Many retailers go to a lot of trouble making their customers feel like “guests.” I’d like to suggest that they would be better off trying to forge friendships.

Treating your customer as a guest isn’t a bad idea, it’s just short sighted. A guest may be pleased and satisfied with a particular visit, but it doesn’t translate into the same affinity and desire to return again and again, that is felt when visiting a good friend.

Friendships are special things. You go out of your way to see friends. You care about their health, what they need, and you enjoy their company. Guests are frequently unwelcome and sometimes they know it. Friends are rarely unwelcome.

It takes two to create a friendship. Retailers have to get to know their customers and listen to their concerns in order to establish the trust necessary for a strong, loyal, long-lived friendship.
At this moment, hundreds of retailers are trying to capture loyalty. Retailers understand the concept of repeat business and want to do what they can to get it. Both online and offline stores, from Amazon.com to WalMart, use a variety of tactics to get to know their customers’ habits.

Statistics indicate that profits can be increased by 25-125 percent just by retaining 5 percent more customers. With that in mind, it’s no wonder that loyalty, guest, and personalized programs are becoming big business. They all share the same basic goal of capturing market share and gaining repeat business. Smart retailers should be looking at these programs as a way to turn their customers into friends.

It takes patience. It takes more than one visit. However, as friendships develop, great things start to happen. The increased loyalty brings referrals (new friendships). It makes marketing efforts more efficient and effective. It can help a retailer gain co-op advertising from vendors designed to meet their friends’ needs. Friends visit more and spend more because they know that this retailer is a friend who cares about they want.

Friendship is the most effective branding a store can ever use. It isn’t loyalty programs that set retailers apart from their competition, it is friendships.

Edit: The author is Melody Vargas.

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Google Adwords Dayparting – Live

Google finally launched dayparting which can be a very effective measure for cost savings and improved ROI.

Be careful when implementing as you may decide that since sales are slack during a certain time of the day that your ads should be turned off during those hours, when those clicks could actually lead to sales during a repeat visit during a different time of day. Ensure that your analytics package is tracking the time of the click and not just the time of the sale to ensure you're dayparting most efficiently. I use Omniture Sitecatalyst as well as Google conversion tracking. Out of the box, Omniture doesn't tag the visit with the time of day, so I use a custom metric to assign the hour of day, 21:00 for example, and measure the revenue/conversion rate per keyword off of that metric.

Adwords Dayparting

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Google finally launches Picasa Web for online photos

I do love Riya, but Picasa has been my application of choice to organize my thousands of digital photos on my home computer. I've always wished I could see those photos from the web, either from my office, or to share with remote family.

Google finally "webalized" Picasa. It's about time. They only offer 250 megs of storage free with an option to upgrade to 6 gigs for $25/yr, and the application is still in limited, invitation only, testing. Philipp Lenssen notes that there is no such thing as a private album, just public and "unlisted". Album titles are appended to the URL of a user's "homepage" so others can merely guess at album titles such as "untitledalbum" and discover your hidden albums. Keep that in mind when uploading photos.

Aside from the privacy implications, it is a very welcome addition to the Google portfolio. link to Picasa Web

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Entrepeneurs are an odd bunch

Munjal's most recent blog post about his experience starting Riya is the best post yet. The following quote puts into words something that most entrepreneurs, just haven't taken the time to reflect on, and realize about themselves.

Entrepreneurs are an odd bunch. As an entrepreneur you create a vision of what can be and then work really hard to make that happen. It is your imprint on the world. It is your legacy. Maybe 2000 years ago if you wanted to leave a mark you would be Julius Cesear or Genghis Khan. Today you start a technology or Internet company. I believe almost all entrepreneurs seek immortality through their products. This is one of the reasons we all seek to build products that are used by and benefit the lives of as many people as possible. We want to do good, but we also want to be remembered. Some admit this and some don't, but it is true. The greatest crusades in the world are always for the intangible. There is no other explanation for why founder's of companies work so hard and sacrifice so much. Money can only account for so much of this. You have to believe that you are on this planet to somehow change it.

What a great reflection! I would think that most entrepeneurs are more interested in the success of their ideas than of money. For those of you that I'm speaking to about employment, please disregard that last sentence. 🙂

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Top 10 Adcenter Fixes

Search Engine Watch forums has a great thread about the Top 10 Adcenter Fixes

Some of my favorites fixes extracted from the thread: 

#2 My top issue – Organize the site navigation according to a date or date range. None of the data presented on any page has any meaning if one has no idea of what timeframe it represents. Going to the report function is NOT a solution. We need to navigate from page to page according to a selected date or timeframe.. today, yesterday, last 7 days and so on. Even if the data lags by 24 hours we can work with it. Without this we can't manage campaigns at all.

6 Rejected keywords..there is no rhyme or reason to them. I have a keyword that is accepted and an obvious misspelling of it rejected. Landing page not relevant! The incorrectly spelled word, does not spell another meaningful word. How can this happen? Bankruptcy, Bankrupcy.

11. Better search functionality within Adcenter. If I don't know what campaign and order I'm looking for already, it's *really* hard to find it, because the search function doesn't seem to work properly. I get errors.

12. Add a "find" tool where we can find all ads that have a certain URL parameter, are at or above a certain CPC, etc. – and then give us a way to edit multiple CPCs on multiple orders on a mass basis. Bid management within the interface is an absolute nightmare right now.

14. Fix dynamic keyword insertion to allow for capitalization: {keyword}. {Keyword}, and {KeyWord}; and default copy if the keyword is too long.

I've been using adCenter since around September of last year, and it has come a long way, but it still has a long way to go. I give credit to Microsoft for having a presence on the thread and communicating with the users about their issues.

adCenter has been a very good tool for me in terms of ROI, but the interface is still not user friendly and I'd love to see the click and relative revenue volume pick up.

Jump to read the entire thread. 

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Google AdWords Feedback Buttons

Thanks to Philipp Lenssen at Google Blogoscoped (who received from James Boulter), Google is testing feedback buttons on Google Adwords.

I don't see consumers saying this "link was helpful" because by the time they discover that, they are already on the advertiser's website and hopefully, completing a transaction. I see this as a collecting negative feedback only, which isn't so bad either. This ends up as a tool for Google to penalize those with poor relevancy which indirectly benefits those with marginal or good relevancy.

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Dayparting Google AdWords – Coming Soon

Posted at the Search Engine Watch blog…

New Google AdWords Dayparting & Ad Scheduling Coming
The new features will allow advertisers to schedule the ads to show on weekends or weekdays only, or on other set days the advertiser specifies. Dayparting is also included allowing advertisers to schedule their ads during specific hours, such as to run late at night or at lunchtime only.

Internet Retailer recently reported the value of dayparting over here at Golfballs.com and the addition to the Google UI will be very welcome. As Jennifer says, it's a move to catch up to Microsoft adCenter's dayparting and demographic targeting options.

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Last 60 Days of Riya – launch of a startup

Munjal Shah, Founder and CEO of one of my favorite new companies, Riya, started blogging the experience of the last 60 days of Riya's launch…

Last 60 Days of Riya

"I will recount the days following our launch, the cocaine like high and subsequent crash of the Techcrunch effect, the final analysis on whether Riya's technology worked, the feedback we recieved from users, the competitors we beat (at least in traffic), the flaw in the Riya business strategy we uncovered, the crisis it precipitated, the concern I developed for the entire Web 2.0 industry as the numbers rolled in, the search for a new strategy as Azhar, Burak, and I sat in a conference room for almost 10 days straight, the customer data that lead us to a counter-web 2.0 and counter intuitive strategy, the board meeting and debate about it, and the first execution around it."

This should prove to be a very interesting read. Riya has shown the power of developing a great product and letting the consumers and word of mouth drive growth rather than the push of ad dollars to drive growth.

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Incredibly poor customer service

I was rooting through some old email looking for something and found this entertaining email thread from a friend of mine that tried to purchase a phone card from Worldphonecard.com

First Message from Worldphonecard.com:

Hello xxx,
Your attempts to order were not complete. You have not been billed for your attempts. Check the credit card number and transaction information to make sure they were entered correctly. If this does not resolve the problem, call the credit card issuer to resolve. Please let us know if there is anything else we can do for you, and thanks for choosing World Phonecard.

Best Regards,

WPC Support Team
http://www.worldphonecard.com

Reply from xxx:

I tried to purchase a card twice and both times my browser locked up.

xxx

Now for the good stuff from Worldphonecard.com

Hello xxx,

Sorry to hear that. We hope you don't think it was our fault?

Best Regards,

WPC Support Team
http://www.worldphonecard.com

Does your customer support team treat your customers like this? It seems to be an attempt to reclaim an abandoned checkout that could be very effective at driving revenue from a customer that you've paid good money to acquire. That's a sure way to run your business into the ground. 🙂

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Slow Gmail with Firefox

I find that Gmail is incredibly slow in rendering with my FireFox browser. Not sure if it is FF in general or if it's extenstion related, but I found a workaround that speeds up Gmail considerably.

I use a "User Agent Switcher Extension" for other areas of my job including SEO and debugging internal applications. This extension allows you to change the information that you send to the host website and specify whether you're using Internet Explorer, Firefox, Safari, or anything else that you want.

I found that if I use the extension to change my user agent to something like "Googlebot 2.1", Gmail reads my request as an "unsupported browser" and switches to an alternative mode which renders many, many times quicker.

Another benefit to claiming that you're Googlebot 2.1 is that you can sometimes get into password protected areas on news websites. 🙂

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MSN adCenter targeting and conversion tracking

I've been beta testing MSN adCenter (PPC Search) for quite a while and have not been impressed with the application so far. They've made tremendous improvements to the UI now that it is out of beta, but it seems that every feature that should be a positive tick for MSN works out to be a negative for the advertiser. It seems they're putting revenue potential ahead of their customer's requirements and expectations.

MSN has a great set of ad targeting options, at least they could be. One example is the demographics targeting or, "Incremental Pricing for targeting" as they call it. This sounds great. I'm in the golf industry so I would like to target the "Males" "35+" demographic.

At issue here is that AdCenter only allows a "positive bid increase" in multiples of 10%. Doesn't sound that bad at first until you think about the 10-100 or so keywords I'm bidding on within the same "order" (an order is the same as an adgroup on Google), all at varying levels of CPC. If I already know the maximum CPC I'm willing to pay for the keyword phrase "Titleist Pro V1", how do I determine what percentage to increase my bids for males only? For the 35-50 demographic? For the 50-65 demographic?

If I assume I can increase my bids 30% for the term "Titleist Pro V1" for those given demographics, how does that affect the keyword phrase "Titleist golf ball" that is also within the same adgroup and subject to the same increase? So if I increase bids by a percentage for a given demographic, then my individual keyword bids should be lowered to maintain my target CPC. What happens when MSN can't determine the demographics of the searcher? I assume I'll get outbid because my base CPC bid is too low.

It would be easy for MSN to offer "negative bid percentages" rather than forcing me to place positive bid percentages for the demographic options. This way, I could maintain my set Max CPC on the keyword level and decrease my bids by 70% for women and 18-25 year olds. No offense to women or young people… you get my drift.

Naturally that would seem to decrease my adspend on adCenter, but it would actually play in the inverse as the more optimal my campaign is running, the more money I'll throw at it. That's why Google commands over 50% of my Search budget and second tier engines get 0%.

One way to get to the true ROAS is to use adCenter's conversion tracking tool in addition to the Omniture Analytics package I currently use. This way, I could manipulate the incremental pricing and keyword CPC until I hit my target ROAS. Again, great in theory, but adCenter does not track conversion on the keyword level, but on the Campaign level. If you're not familiar with adCenter's heirarchy, it's: Campaign>Order>Keyword. So adCenter tracks at the most macro level it possibly can which is of little to no use to the advertiser, but good for MSN's short-term revenue.

MSN conversion tracking also advertises their adCenter services on all checkout confirmation pages, regardless of how the customer was referred.

So I won't be using MSN's new targeting options or their conversion tracking. Google will continue to dominate my adspend and I'll hope that MSN gets it together and builds their applications for their advertisers and consumers and not primarily their pocketbook, because when advertisers and consumers win, their pocketbook will follow.

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Advertising in the real voice? – Philips Bodygroom Shaver

Philips has a great site to launch its Bodygroom shaver. It's a flash site that talks about men's bodygrooming and why it's important. A good bit of the dialog is censored because it brags about such things as women "eating frozen yogurt off of your bleeep" if you are clean shaven.

I enjoy when a large brand with strong brand equity gets off of its Ivory tower and creates advertising that the consumer might actually be interested in. I hope it proves successful and we we get see more of this in the future. It's not exactly Cluetrain, as it's not a bi-directional dialog with the consumer, but at least it's stepping away from traditional "corporatespeak" and "positioning".

It would be interesting to see if this type of viral site could drive the next generation of affiliate sales. Currently affiliates offer coupons or malls that drive traffic to a merchant in exchange for commission on sales. What if this Philips website was actually an affiliate produced site and the "where to buy" link as well as every other external link was funneled through Linkshare or CJ? Provided it was effective and viral, I wonder how the Earnings per Click (EPC) would translate?

Anyway, check out the site as it's is very fun and entertaining. By the way, it is a European site which explains why it is a little more risque than we would see in the US.

EDIT: It's been eating at me that I mentioned Cluetrain in the above paragraph. To be clear, this is not Cluetrain, it's just an entertaining advertisement and nothing more. A better example of Cluetrain is how WordPress (the maker of this blog software) is communicating with it's users about why their blogs are not being served all the time. Matt is completely open about the network issues they are having and does not attempt to hide anything. If you read the comments, you will see the true effect of Cluetrain and Pinko Marketing

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Google relaunches Sketchup

Last month I wrote about Google buying @Last software, the makers of 3d modeling application Sketchup. Google relaunched Sketchup today, and the best news is that it is now FREE. There's a pro version for $495, but I'm not sure yet what the difference is.

Google seems to be positioning the application as a tool to enhance Google Earth. You can create your own 3d models and upload them to their searchable 3D warehouse. Interestingly, Google hasn't branded the 3D warehouse as such, but is using just a standard Google logo, there's not even a "beta" indicator. Even Froogle is still in beta!

I really like how Google has implemented the use of tags for the objects available on the 3D warehouse search engine. I haven't uploaded an object, but I assume the uploader chooses tags when uploading. Leave it to the Internet though, someone already created an object called "sex house" and tagged it with obscene tags. And no, I wasn't searching for "sex", I searched for "White House"  🙂

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