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Indian-origin researchers propose new method for preventing pay-per-click fraud

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New York: Indian-origin researchers have proposed a new method for detecting fraud from the pay-per-click model – a pricing model used for online advertising.

“If somebody likes something, they can click on the ad and go directly to the site. Hopefully, that translates to a sale. No matter whether it does or not, the advertiser pays for these clicks. In the pay-per-click model, if people or bots are clicking fraudulently, then the advertiser is losing money,” said Suresh Radhakrishnan, professor at the University of Texas in the US.

The researchers have proposed a way to support technological improvements to check fraud which, they said, is affecting the advertising industry as a whole.

The study considers identifying click fraud as a three-stage process: the service provider — for example, Google or Yahoo — classifies clicks as fraudulent or not.

Then, the advertiser does the same, using his technology. If there is a disagreement, the service provider examines further and its conclusion is considered binding.

The problem with the new approach is intuitive. For a service provider, if he gets paid, it doesn’t matter whether it’s a valid click or a fraudulent.

But the advertiser would want to verify whether the click is fraudulent or not. Even if the click is valid, the advertiser may say that it’s fraudulent because of the pay-per-click cost, the researchers explained.

To solve the problem, the researchers suggested that an independent third party investigate and flag fraudulent clicks when a conflict arises between the advertiser and the service provider.

“In the long term, for the pay-per-click model to survive, you will need to make sure both parties are happy, so technologies will have to get to a point where click fraud is minimized,” Varghese Jacob, vice dean of the Naveen Jindal School of Management.

“People will have to invest in such improvements. Otherwise the pay-per-click model may not be sustainable,” Jacob noted.

The findings appeared in the journal Information Systems Research. (IANS) (Photo: http://www.lifehack.org)

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India is Leading Mobile Ad Fraud in Asia: Report

Marketers must understand the potential of technologies such as Blockchain that can help solve issues related to fraud and create security and transparency in mobile marketing ecosystem

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Asia
Major types of ad Fraud are cookie stuffing (74 per cent), adware traffic (65 per cent), data fraud (61 per cent) and ad injection (54 per cent), and the cases Have Been Increasing in Asia. Pixabay

India is leading mobile ad Fraud in Asia with a rate of 62 per cent as marketers are spending nearly 20 per cent of their advertising budget on ad fraud, a new report said on Monday.

Nine out of 10 marketers said there is scope for improvement in ad fraud prevention methods while 95 per cent respondents felt that lack of penalties and transparency in industry regulations give rise to ad fraud,” said the report titled ‘Ad Fraud Benchmark Report’ from global non-profit organization Mobile Marketing Association.

Major types of ad fraud are cookie stuffing (74 per cent), adware traffic (65 per cent), data fraud (61 per cent) and ad injection (54 per cent).

Only 37 per cent respondents are aware of Blockchain and its application to fraud prevention, said the report published in collaboration with a leading research firm Decision Lab.

Asia
India is leading mobile ad Fraud in Asia with a rate of 62 per cent as marketers are spending nearly 20 per cent of their advertising budget on ad fraud, a new report said on Monday. Pixabay

“In India, the awareness on ad fraud risks is very low with almost a fifth of the marketers being unclear of their ad fraud budget and majority of them believing that fraudulent activities will only increase,” said Moneka Khurana, Country Head, MMA India.

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“Marketers must understand the potential of technologies such as Blockchain that can help solve issues related to fraud and create security and transparency in mobile marketing ecosystem,” Khurana added. (IANS)