Baidu Has Their Own Click Fraud Problems – Stock Drops

Google has a new friend in the Click Fraud support group.

Baidu, the leader in China for search traffic is experiencing similar problems that Google has seen regarding click fraud, but on an even larger scale. Click-fraud is when people click on an online ad and have no intention of buying anything, thus driving up the cost for the advertiser, who pays on a per-click basis. The fraudsters can be any number of people, including competitors who want to drive up the advertiser’s costs.

The study, conducted by Peter Lu, of the China IntelliConsulting Corp, found that advertisers believe 34 percent of all clicks on Baidu ads are fraudulent, compared to 24 percent on Google.

Originally posted on Tuesday, March 20th, 2007
Search Marketing, International optimization, Valuation, China Search.