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Report: Click Fraud Rises in Q2 & High-Priced Keywords Click Fraud Rate At 20.2%

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The Click Fraud Index issued an updated report on the state of click fraud. In the second quarter click fraud rose four points to 14.1 percent, compared with the Q1 results of 13.7 percent. In addition, this time they broke out click fraud rates in terms of high-prices keywords versus low-price keywords. For terms that cost over $2.00 per click, high-priced keywords, the click fraud rate is higher than the average, at 20.2 percent. Click fraud is less of an issue at Google and Yahoo, tier one providers at 12.8 percent but did rise from 12.1 percent in Q1. Tier 2 search providers was 20.3 percent vs. 21.3 percent in Q1 and Tier 3 search providers was 27.1 percent vs. 29.8 percent in Q1. Full release posted below...

FOR IMMEDIATE RELEASE

Industry Average Click Fraud Rate Climbs
in Second Quarter 2006

Click Fraud Rate for High-Priced Search Terms Tops 20.2 Percent

SAN ANTONIO, Texas ? July 17, 2006 ? Click ForensicsÔ, LLC today released the latest industry Pay Per Click fraud figures for the second quarter 2006 from the search advertising industry?s leading independent click fraud reporting service ? the Click Fraud IndexÔ (www.ClickFraudIndex.com). The Click Fraud Index monitors and reports on data gathered from the Click Fraud NetworkÔ, which more than 1,300 online advertisers and their agencies have joined. Network members can track their online campaigns for click fraud free of charge. Key findings from data reported for Q2 2006 include:

- The overall industry average click fraud rate was 14.1 percent, slightly higher than the average of 13.7 percent for Q1
- The industry average click fraud rate for high-priced search terms was 20.2 percent. High-priced terms are defined as terms that cost over $2.00. These high-priced terms often make up the majority of an advertiser?s total spend.
- The industry average click fraud rate for companies running online advertising campaigns through:
o Tier 1 search providers, such as Yahoo! and Google, was 12.8 percent vs. 12.1 percent in Q1
o Tier 2 search providers was 20.3 percent vs. 21.3 percent in Q1
o Tier 3 search providers was 27.1 percent vs. 29.8 percent in Q1
- The average pay per click term cost for the top key terms across the five biggest search advertising industries ? Retail, Financial Services, Health & Fitness, Technology, and Entertainment ? for Q2 was $4.51. This compares to $4.75 from Q1.
- The greatest percentage of click fraud, over 88 percent, originated from within the U.S. and Canada. Outside North America, the greatest amount of click fraud originated from within India. Unwanted click activity originating from India increased 26 percent during Q2.

?One of the most interesting findings from our Q2 data was the difference between the overall average industry click fraud rate and the click fraud rate for the most expensive search terms,? said Tom Cuthbert, president and CEO of Click Forensics, LLC. ?For the first time, we have industry data that clearly shows what many have expected ? organizations purchasing higher-priced search terms are significantly more vulnerable to click fraud.?

The Click Fraud Index publishes data collected from the Click Fraud Network (www.ClickFraudNetwork.com), the industry?s first independent third-party click fraud detection service dedicated to helping companies more accurately monitor their online advertising campaigns for Pay Per Click (PPC) fraud. Using CF Analytics?, a patent-pending click fraud detection technology, the Click Fraud Network allows advertisers to track their online campaigns for potential click fraud. The service is unique in that it monitors online campaigns for click fraud by correlating data collected from search provider campaigns and the advertisers own web sites ? providing the industry?s most accurate view of click fraud to date.

The Click Fraud Index tracks and publishes industry click fraud data on a weekly and quarterly basis for specific search providers, industries and trends. Industries covered include Retail, Financial Services, Health & Fitness, Technology, and Entertainment. Individuals can access information from the Click Fraud Index at www.ClickFraudIndex.com. Advertisers can join the Click Fraud Network at www.JoinTheNetwork.com and monitor their individual pay per click campaigns for up to 100,000 clicks per month free of charge.

About The Click Fraud Network
More than 1,300 advertisers and agencies are currently members of the Click Fraud Network, which is the industry?s first and largest independent third-party service dedicated to helping advertisers, agencies and search providers monitor online advertising campaigns for click fraud free of charge. The network is comprised of a representative cross-section of online advertisers and interactive advertising agencies, including Fortune 500 companies and some of the world?s largest retailers, travel sites, financial services firms and pharmaceutical companies. Advertisers and agencies who wish to monitor online Pay Per Click advertising campaigns with up to 100,000 clicks per month free of charge, can sign up for the Click Fraud Network at www.JoinTheNetwork.com.

About Click Forensics, LLC
Click Forensics, LLC is the leading provider of third-party technology and services that help online advertisers, agencies and search providers to better identify and stop Pay Per Click fraud. The company runs the top independent click fraud detection service in the industry, the Click Fraud Network (www.ClickFraudNetwork.com), which monitors online advertising campaigns for click fraud free of charge. Click Forensics also provides and enterprise-class solutions to help advertisers with campaigns of 100,000 clicks or more per month track click fraud. More information on Click Forensics and its offerings are available at www.ClickForensics.com.


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