Click Fraud : The Dark Side of Online Advertising

1. Click Fraud : The Dark Side of Online Advertising - Avdhesh Patel

2. Definition • Source of Click Fraud • Why Does Click Fraud Matter? • Google’s AdWord and AdSense Advertising Model • How Click Fraud works? • Proposed Solutions • Conclusion Overview

3. Click Fraud is a type of internet crime that occurs in pay per click online advertising when a person, automated script, or computer program appears like a authorized user of a web browser clicking on an ad, for the purpose of generating a charge per click without having actual interest in the target of the ad's link. Definition

4. Source of Click Fraud Competitors of advertisers: These parties may wish to harm a competitor who advertises in the same market by clicking on their ads. Competitors of publishers: These persons may wish to frame a publisher. It is made to look like the publisher is clicking on its own ads. The advertising network may then terminate the relationship. Other harmful intent: There's an array of motives for wishing to cause harm to either an advertiser or a publisher, even by people who have nothing to gain financially. Friends of the publisher: Sometimes upon learning a publisher profits from ads being clicked, a supporter of the publisher (like a fan, family member, or personal friend), will click on the ads to help.

5. Pay Per Click Advertising Pay Per Click advertising or PPC advertising is an arrangement in which webmasters (operators of web sites), acting as publishers, display clickable links from advertisers, in exchange for a charge per click. As this industry evolved, a number of advertising networks developed which acted as middlemen between these two groups (publishers and advertisers). Each time a (believed to be) valid web user clicks on an ad, the advertiser pays the advertising network, who in turn pays the publisher a share of this money. This revenue sharing system is seen as an incentive for click fraud. The largest of the advertising networks, Google’s AdWords/AdSense and Yahoo! Search Marketing.

6. Why Does Click Fraud Matter? Google's’ 99 percent of its turnover through Pay-Per-Click advertising. If click fraud is not countered in the near future, the backbone of its business threatens to collapse. Google’s advertising revenues have risen from 6.07 billion US dollars in 2005 to 10.49 billion dollars in 2006. In 2006, 60 per cent of the revenues (i.e. 6.29 billion dollars) were made through Google AdWords, a system that is susceptible to competitor click fraud, while the remaining 40 per cent (i.e. 4.2 billion dollars) were made through Google AdSense, a system that is susceptible to publisher click fraud.

7. Key Measures of how effective an advertisement Click-Through Rate (CTR):it specifies on how many ads X, out of the total number of ads Y shown to the visitors, the visitors actually clicked; in other words, CTR = X/Y. CTR measures how often visitors click on the ad. Conversion Rate:it specifies the percentage of visitors who took the conversion action. Conversion rate gives a sense of how often visitors actually act on a given ad.

8. Internet Advertising Payment Method CPM – Cost per Mille – an advertiser pays per one thousand impressions of the ad (“Mille” stands for “thousand” in Latin); an alternative term used in the industry for this payment model is CPI (Cost per Impression). CPC – Cost per Click (Pay per Click or PPC) – an advertiser pays only when a visitor clicks on the ad, as is clearly stated in the name of this payment model. CPA – Cost per Action – an advertiser only pays when a certain conversion action takes place, such as a product being purchased, an advertised item was placed into a shopping cart, or a certain form being filled. This is the best option for an advertiser to pay for the ads from the advertisers’ point of view.

9. Fundamental Problems of CPC/PPC Model Good click-through rates (CTRs) are still not indicative of good conversion rates, since it is still not clear if a visitor would buy an advertised product once he or she clicked on the ad. In this respect, the CPA-based models provide better solutions for the advertisers since they are more indicative that their ads are “working.” It does not offer any “built-in” fundamental protection mechanisms against the click fraud since it is very hard to specify which clicks are valid vs. invalid in general. For this reason, major search engines launched extensive invalid click detection programs and still face problems combating click fraud.

10. Google’s AdWords Program Google’s AdWords is a program allowing advertisers to purchase CPC-based advertising that targets the ads based on the keywords specified in users’ search queries. An advertiser chooses the keywords for which the ad will be shown on Google’s web page (Google.com) or some other “network partner” pages, such as AOL and EarthLink ,and specifies the maximum amount the advertiser is willing to pay for each click on this ad associated with this keyword. When a user issues a search query on Google.com or a network partner site, ads for relevant words are shown along with search results on the site on the right side of the Web page as “sponsored links” and also above the main search results. Ad Rank for the ads is defined as Ad Rank = CPC x QualityScore.

11. Google’s AdWords Program Cotd…

12. Google’s AdSense Program Google AdSense is a program for the website owners (known as publishers) to display Google’s ads on their websites and earn money from Google as a result. There are two ways for publishers to participate in the AdSense program: AdSense for Search (AFS):Publishers allow Google to place its ads on their websites when the user does keyword-based searches on their sites. In other words, as a result of a search, relevant ads are displayed as links sponsored by Google, and these links are produced using the same methods as on Google.com. Examples of such publishers include AOL and EarthLink. Moreover, the search results pages containing the ads are customizable to fit with the publisher’s site theme, and may have a different “flavor” than the ads on Google.com. AdSense for Content (AFC):The system that automatically delivers targeted ads to the publisher’s web pages that the user is visiting. These ads are based on the content of the visited pages, geographical location and some other factors. These ads are usually preceded by statement “Ads by Google.” Google has developed methods for matching the ads to the content of the pages that also take into account the CPC values when selecting the best ads to place on the page.

13. Google’s AdSense Program contd..

14. How Click Fraud works? Simulating a Click Distributed Click Fraud with Botnets Taking over a Computer Command & Control Referrer Click Fraud

15. Simulating a Click Typical online advertisement services work by providing webmasters a copy of JavaScript code to add to their pages. This code is executed by the web browser of a visitor to the site, and downloads ads from the advertiser’s server at that time. The ad download triggers a rewrite of the frame in which the JavaScript appears, replacing it with the HTML code necessary to display the ads. When a user clicks an advertisement link, they “click through” the ad provider’s server, giving the ad provider the opportunity to bill the client for the click. The user is then taken to the ad client’s homepage”

16. Distributed Click Fraud with Botnets When the program sends an HTTP request to the advertiser’s server, the IP address of the computer making the request is transmitted in order to establish a connection between client and server. To increase the efficiency of the fraud, the fraudster can distribute the program so that it does its work from all over the internet, with the help of a so called botnet.

17. Taking over a Computer The targeted computer(s) can be compromised by exploiting security holes. The program which does the exploiting is commonly referred to as an exploit. Attackers either write these exploits themselves or, more commonly, use exploits for known security holes that are available on the internet. Attacker begins scanning (IP) address blocks for systems which fulfill the requirements of the exploit by using open source program Nmap.

18. Command & Control Internet Relay Chat (IRC) is used as command and control centre (C&C) for a botnet. An IRC consists of one or more servers which relay messages and/or commands to the connected clients. That way the botnet owner can centrally command the clients to download and execute a program which will commit click fraud on the owner’s website(s).

19. Referrer Click Fraud The dishonest publisher puts a script on his website that is automatically downloaded onto a visitor’s computer when said visitor goes to the publisher’s website. The script then appears like a click onto the advertisement. The log files of the advertiser will thus show the visitor’s client ID and IP address.

20. Proposed Solutions Cost-Per-Action (CPA) Duplicate Detection Association Rules

21. Cost Per Action In the Cost-Per-Action model, advertisers don’t pay for clicks, but rather for specific actions that are performed on the advertiser’s page after the click. These actions might, for example, be making a purchase, filling out a form, or registering. Such systems are used by Amazon, for example, to sell books on web pages: a service provider, say Expedia, can list an Amazon ad for a travel guide with the understanding that, should a user purchase the product advertised, then the service provider will receive a payment”

22. Duplicate Detection In order to differentiate between authentic and fraudulent clicks, the advertising publishers “tracks individual customers by setting cookies.

23. Association Rules This is a proposed a solution to the referrer click fraud. They propose encouraging ISPs (Internet Service Providers) to provide the data stream necessary to detect this kind of click fraud. This data stream would contain the HTTP requests to page P, which might or might not be fraudulent. They would devise an algorithm to detect associations between one or more sites that refer to P very frequently, and clicks on an ad on P. If strong associations are found, it is very probable that P is using one or more ‘decoy’ websites in order to commit undetected click fraud.

24. Google's Approaches to detecting invalid clicks Anomaly-based Approach : According to this approach, one may not know what invalid clicks are. However, one can know what constitutes “normal” clicking activities, assuming that abnormal activities are relatively infrequent and do not distort the statistics of the normal activities. Then invalid clicks are those that significantly differ from the established norms.. Rule-based Approach : In this approach, one specifies a set of rules identifying invalid clicking activities; alternatively, one can also identify a set of other rules identifying valid clicking activities. Each Rule has form “IF Condition1 AND Condition2 AND … AND ConditionK hold THEN Click X is Invalid (or respectively Valid).” An example of such a rule is “IF Double-click occurred THEN the second click is Invalid.”

25. Legal Case In 2004, California resident Michael Anthony Bradley created “Google Clique”, a software program that he claimed could let spammers defraud Google out of millions of dollars in fraudulent clicks. Authorities said he was arrested while trying to blackmail Google for $150,000 to hand over the program, believed to be the first arrest for click fraud.

26. Conclusion All the conceptual definitions of invalid clicks assume human intent. This means that none of these definitions can be operational in the sense that invalid click detection methods can be developed that would algorithmically identify invalid and only invalid clicks satisfying these definitions. This is the fundamental problem of invalid clicks that makes click fraud a difficult problem to solve.