It is click-fraud and it’s destructive, but is it as rampant as some want us to believe? Some networks are publicly taking the fight on. However, without full transparency advertisers are left to guess or take the network’s word regarding how much hard earned dollars may be siphoned from their budget. Here to help us understand a bit more about click-fraud and how we can fight against it is Stuart DePina, Chief Executive Officer, Who's Calling. Headquartered in Kirkland Washington, with a branch office in Irvine, California, it’s helping to win the fight against click-fraud by opening up the processes surrounding it for everyone to see. Let’s see what Mr. DePina has to say.
Mr. DePina,
Q. How would you define click fraud?
A. In my opinion, it’s really difficult to define and categorize suspect traffic. I think it’s more important to understand the overall quality of traffic and identify the key performance indicators to track results against. The risk and reality of click fraud varies greatly for each advertiser and industry and I don’t believe we have enough knowledge to really gauge the issue at this point. Quality leads that result in phone calls, completed Web surveys and actual closed sales are the true value of ad dollar spends. Our technology can uniquely track online and offline conversion metrics to enable our clients to optimize their ad spends to generate more of the quality traffic they are looking for.
Q. How does click fraud affect businesses?
A. At this point, I don’t believe we have the right standards in place to accurately measure click fraud’s significance on search engine marketing. Ultimately, I think click fraud is a symptom of advertisers being too far removed from their SEM planning, traffic and results. In my opinion, this goes far beyond just tracking clicks generated by a campaign. What’s more important is to know what happens with these visitors once they get past that click, onto the Web site or on the phone. What is the multi-channel conversion of this traffic? What percentage of these clicks are actually moving the bottom line and what can be done to increase these types of clicks? I think these concerns should keep most marketers awake at night – not the fear of fraudulent clicks. ClickPath tracks Web traffic as it converts to actual phone traffic, giving advertisers a concrete look at their marketing ROI.
Q. Do you see click fraud slowing SEM adoption of pay per click advertising?
A. I think that we’re going to see a number of evolutionary changes in search engine marketing – including the incorporation of more key performance indicators into the general SEM tracking equation. That said I don’t see the pay per click model taking a back seat anytime soon. So many factors play into the ultimate success of an online ad campaign – from the company and brand being advertised to the Web experience the visitor has once they are directed to a sponsor’s site. The job of the search engine is to create and manage online real estate that generates advertising traffic for marketers. Beyond that, I think it’s up to the advertiser to take an active role in evaluating and adjusting campaigns to achieve optimum results. Those advertisers that leverage cross-channel marketing performance data, using solutions like ClickPath, will win by having the critical information needed to make marketing decisions that get results.
Q. What is your response to the three recommendations that Google makes regarding what Google feels 3rd party auditing firms need to do which are:
Address click inflation issues as soon as possible by making use of all available tools and approaches to count clicks accurately
A. I totally agree – addressing significant click inflation immediately is a crucial part of managing a campaign. Third-party marketing analytics tools like the ClickPath technology can ensure that marketers have real-world data behind their click traffic and conversion rates. If a spike in traffic is noticed without a corresponding pattern of conversions and/or sales, advertisers have the ability to investigate this traffic and determine its legitimacy. Conversely, if the spike is related to a change in campaign strategy, marketers should be well-aware of the results generated by this move.
Invest in R&D and engineering, and take quality issues seriously
A. We have to remember that SEM is a relatively new ad vehicle and we are still determining the best ways to evaluate its real value. Who’s Calling is on the cutting edge of this research and offers the next generation in online to offline SEM tracking by using telephony to build a bridge between Web traffic data and bottom-line results. Companies like Who’s Calling continue to lead the way in finding innovative and effective ways to empower advertisers to get the most value from their online marketing campaigns.
Avoid sample-based analysis, and provide full information to advertisers, such as the total number of events from Google that were analyzed, so that advertisers can do independent checking
A. I agree that sampling is not the way to go about identifying suspicious activity – or optimizing PPC campaigns at all for that matter. Due to the interactive and rapidly changing nature of a PPC campaign, a snapshot has the tendency to over- or under-emphasize an issue. I think that all traffic and actions taken once a visitor arrives on the site must be analyzed in their entirety before advertisers can make truly informed campaign decisions.
Q. How is Who’s Calling addressing click fraud?
A. Who’s Calling’s ClickPath technology does not solve click fraud – but it can help marketers identify potential risks. The solution combines targeted Web tracking with advanced telephony services to evaluate the conversion and return of Web-based ad campaigns. By monitoring the rate of “clicks to calls” using a dynamic phone number insertion process, we can accurately report a more complete picture of the activity generated by specific campaigns and help advertisers make educated decisions. Our technology can track SEM from first click to the key performance indicator it signals and this is a very unique value proposition for marketers.
Q. What do you say to those who believe that click fraud will always be a factor in advertising online using the pay per click model?
A. Since we really don’t know if it’s even a factor today – I can’t predict how click fraud will affect pay per click advertising in the future. Again, I think that careful monitoring and accurate reporting of multi-channel conversions will greatly reduce the risk of fraudulent traffic moving forward.
Q. Can you talk a bit about what the future holds for pay per click advertising as it pertains to battling click fraud, and where Who’s Calling fits in?
A. I think we’ve seen the large search engines make a serious attempt to address the issue of click fraud in the past year and will continue to enhance tracking and valuation models. Unfortunately, I think there’s only so much they can do to really monitor and evaluate each specific campaign – and that’s where Who’s Calling comes in to play. The ClickPath technology is the ideal tool for both search engines and individual advertisers to enhance online marketing activities and make campaign decisions using tangible ROI data. I don’t think that the way ads are purchased is going to change – but what will evolve is the way SEM decisions are made and how results are tracked back to the bottom line. Marketers are already using ClickPath to enhance their efforts and demonstrate the value of their planning and I think we will continue to be a driving force in leveraging the uncharted territory of SEM valuation.
Thank you Mr. DePina.
About Stuart DePina, Chief Executive Officer, Who's Calling
As chief executive officer, Stuart DePina manages the long-term growth strategy of the company. His balanced leadership is rooted in deep financial experience and the belief that a solid organization is built on commitment, perseverance and thoughtful business practices. DePina's professional history is distinguished by leadership roles in guiding firms through various stages of development, including venture and strategic financing, long-term business planning, and merger and acquisition activity.
DePina served as president and chief executive officer of xSides Corporation, a developer of trusted computing and digital rights management technology. He was chief financial officer for Ticketmaster Corporation, Inc., and a partner at Big 4 public accounting firm KPMG, in the company's information, communication and entertainment practice.
For more information, please visit the Who’s Calling solutions site at: www.whoscalling.com for more information
