What is Impression Fraud or "How Grinch Stole Cindy Lou's better Web Site ROI" ?

Impression fraud is a special case of click fraud.suddenly back in business, while Cindy has to keep
The prototypical impression fraudster is theup somehow. Remember, it's almost November
competitor who resorts to unfair means to gainand she has to sell off her trees rather soon.
an advantage. His primary motivation is to reduceAnecdotal evidence suggests that the loss from
the ranking of his competitor, and then savethis activity may well run into thousands of dollars
himself money by inserting his own ad at a lowerfor larger advertisers(maybe when Cindy Lou
rate. Another possible motivation may be aTrees Inc. goes nationwide).
hit-and-run operation(random act of violence).How to Prevent your Self from Impression
Given the potentially devastating consequences itFraud?
could have on a person's web site return onFor impression fraud to be effective it has to
marketing investment, it could even be ahappen at relatively high volumes(usually
disgruntled employee.accompanied by a "traffic spike"). The result will
To illustrate the mechanics and motivation of Let'sbe lots and lots of impressions and a very low
call this individual Grinch. Assume that CindyCTR. Also, if its done for competitive reason,
Lou(our protagonist) has an advertisement forGrinch may identify himself (if you are really
Christmas trees running on google ad words.keeping tabs on things) because he has to switch
Cindy Lou's Pay Per Clickadvertisement has beenhis ads on and off. Reporting it to Google
doing rather well, getting a lot of click throughs.immediately will help but will not get you any
She doesn't have to bid a whole bunch to rankcompensation. Google will still charge you more
high on the sponsored links because the position ismoney for ad placement in a certain position. The
a function of bid price and Click Through Ratio.impression fraud attack is extremely insidious,
She is getting decent traffic through her PPCbecause even though the consequences can
campaign. The traffic is very focused, a largeseverely affect the return on investment ( ROI),
number of visitors end up converting. The treesGoogle's policies don't allow refunds to take place.
are moving off the lot and things are shaping upThe take home point is that you have to keep
rather fine. Grinch too has an advertisementtabs on the traffic, including traffic that is not
running. Unfortunately (for Grinch), hisgetting to your site. It is imperative for you to
advertisement is not getting a lot of clicks. In fact,use a web metrics product on a periodic(and
his CTR is so dismal that he has to pay everfrequent basis). A lot of times, we see people
increasing sums just to keep it displayed. His ROIinvest in a log analyzer or even a hosted web
is not that great given his higher cost base formetrics application without devoting time and
the PPC bid. He does not like the fact that Cindy'sresources to get actionable data. If you are
campaign is doing rather well. Not one bit! So helimited in terms of resources, you should be able
does something devious.to set alarms through your web analytics package
Grinch toggles off his own PPC ads and then doesand should be able to receive alerts. Ask your
a lot of searches for keywords appropriate tovendor if they have the ability to upload your
Christmas trees. He searches on google, and asksAdWords data into your web metrics account.
his friends to search too. Only he never clicks onYou have to reconcile the data from what your
Cindy Lou's ad. He runs his campaign for a fewhistorical CTR has been to your current CTR, and
days, and Cindy sees her CTR go down and sheyour costs. It will help to level the playing field,
is at the bottom of the heap. It's now down to acalculate your effective ROI, and may even allow
level where Grinch sees a level playing field andyou to compare google with competing services
steps in toggling his PPC ad back on. Grinch isavailable from Yahoo, MSN and Ask Jeeves.