OK, click fraud is a real problem. But what, exactly, can be done about it? The short answer: very little. It's the model that's flawed: paying per "click" rather than per "impression" actually facilitates fraud. And until the model changes (and web advertising prices correspondingly drop), fraud will continue.
Someone could make the argument that watchdogs have better things to do. But click fraud -- endlessly clicking on ads to generate cash or hurt a competitor -- is a serious threat to the web business, and no one's doing much about it. Commentary by Adam L. Penenberg.
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