Click Fraud Just Another McGuffin

Click Fraud Just Another McGuffin Click Fraud Just Another McGuffin By Cody Willard RealMoney.com Contributor 1/26/2006 9:26 AM EST Click here for more stories by Cody Willard This column was originally published on RealMoney on Jan. 24. It's being republished as a bonus for TheStreet.com readers. So let's talk about this Google (GOOG:Nasdaq - commentary - research - Cramer's Take) click fraud thing for one second, as it has become a large part of the bear case on Google right now. Look, Google knows there are some teens in Siberia, and yes, probably Duluth too, who are messing with click-through rates by repeatedly hitting ads. 1. 10 Hot Techs That Aren't Apple or Google 2. Google Catches Cold 3. Sirius Hires Allen & Co. Exec 4. New Tech Deserves Some Respect 5. Slower Growth's Upside But the big question isn't whether or not this nefarious stuff is going on. It's whether or not this evil stuff (to borrow the Googlite phrase "do no evil") is going on to an extent that Google's customers will be surprised to find out about. It's related to how advertisers in television and magazines (and all other media) have to account for TVs that are left on for the dogs while nobody's home, or for subscribers who never open the magazine. And guess what -- both the sellers and the buyers of such advertisements are aware of and account for this ahead of time. You see, Google tells its customers beforehand that there will be click fraud, and it even accounts for that in its pitch. That's right, when Google tells a customer that they can expect X return on investment (ROI) when using Google's ad network, Google's already included click fraud in those numbers. So in essence, the only way for this supposed click-fraud issue to really become problematic is if it's worse than Google realizes. Consider it the online marketplace version of Wall Street's "worse than expected" scenario. Funny Quotes Quotes Gatlinburg Cabins Quotes Directory Famous Quotes