Google’s Accuracy Can Easily Cost Advertisers $285 Million

Brandt Dainow has a interesting article named How Accurate is Google AdWords? In that article, he shows how Google has earned $6 billion from advertising during 2005 and $4.6 billion in the first two quarters of 2006. He explains that if the conservative estimate that 95% of Google’s revenue comes from AdWords, that puts Google’s income from AdWords last year at $5.7 billion and $4.37 billion in the first two quarters of 2006. Now, if Google’s statistical accuracy in detecting invalid clicks is 95%, which is pretty good, then they “mis-billed $285 million last year.” Read the full article at iMedia Connection.