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Advertising The Almighty Buck Technology

Fraud Bots Cost Advertisers $6 Billion 190

Rambo Tribble writes A new report claims that almost a quarter of the "clicks" registered by digital advertisements are, in fact, from robots created by cyber crime networks to siphon off advertising dollars. The scale and sophistication of the attacks which were discovered caught the investigators by surprise. As one said, "What no one was anticipating is that the bots are extremely effective of looking like a high value consumer."
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Fraud Bots Cost Advertisers $6 Billion

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  • by Kergan ( 780543 ) on Wednesday December 10, 2014 @04:08PM (#48567437)

    3... 2... 1...

    • characters in the body

    • I would say, don't hate the player, hate the game. I think the ad-driven web is thoroughly corrupted, right down to clickbait headlines, and steal-and-reprint news aggregators (ahem).

      But at this point there is no market for paid content on the web, or anywhere else (note the crash-and-burn of investigative journalism as a result) - nobody even remembers or can imagine what a spam-free web would look like. (Including you adblock users, since there is nothing to consume but ad-sponsored content). So it'

    • Been busy loading all the ads, or why the lateness?

  • by Tablizer ( 95088 ) on Wednesday December 10, 2014 @04:10PM (#48567453) Journal

    "What no one was anticipating is that the bots are extremely effective [at] looking like a high value consumer."

    Maybe because "high value consumers" are usually bot-like drooling idiots.

    • Artificial intelligence is by now not far away from natural stupidity.

    • by gl4ss ( 559668 )

      you would have thought that EVERYONE would have been anticipating just that though.

      there's no point running a bot that looks like a low value customer and provided that you know what counts as a "high value customer" then surely you make it look like that.

      like, what kind of idiots commissioned the study?? there's a reason why many people only pay for adclicks that result in a sale. because if you're paying for impressions, you're paying for air.

  • Good. (Score:5, Interesting)

    by pla ( 258480 ) on Wednesday December 10, 2014 @04:15PM (#48567499) Journal
    Where do I get one of these bots?

    I don't want the money, I just want to make sure Madison Ave doesn't have it either.
  • by lambent ( 234167 ) on Wednesday December 10, 2014 @04:15PM (#48567501)

    Here's the thing. This is like a microeconomics modeled market. If the click rate is inflated by 25%, I'll wager the payouts compensate by being deflated by 25%. Advertisers are willing to pay for clicks, and will probably adjust their prices accordingly.

    One of the few times I feel comfortable saying online that the free market will handily solve this problem, without worrying that I'll end up sounding like a lolberterian.

    • by dunkindave ( 1801608 ) on Wednesday December 10, 2014 @04:24PM (#48567581)
      Except while the real advertisers will see a 25% payout reduction, the market will also see 25% of the ad expense budget from companies go to scammers. Not the best free market outcome.
      • Except while the real advertisers will see a 25% payout reduction, the market will also see 25% of the ad expense budget from companies go to scammers. Not the best free market outcome.

        In all honesty, I don't really see this as being much different from High Frequency Trading, or half of the other crap companies do -- price fixing, collusion, non-poaching/non-compete agreements. Basically anything they can do to manipulate the system in their favor, and skim a little off the top.

        Someone is always gaming th

    • Here's the thing. This is like a microeconomics modeled market. If the click rate is inflated by 25%, I'll wager the payouts compensate by being deflated by 25%. Advertisers are willing to pay for clicks, and will probably adjust their prices accordingly.

      One of the few times I feel comfortable saying online that the free market will handily solve this problem, without worrying that I'll end up sounding like a lolberterian.

      Doesn't matter? tell that to all the millions of websites that get a 25% cut in advertising revenue because those with bot nets need to get their cut. Your statement is moronic, The effects are potentially massive as it funnels funds away from legitimate sites in favor of the corrupt and I say that as someone that despises advertising.

      • by timeOday ( 582209 ) on Wednesday December 10, 2014 @05:07PM (#48567987)

        Doesn't matter? tell that to all the millions of websites that get a 25% cut in advertising revenue because those with bot nets need to get their cut.

        You assume this is to divert ad revenues to phony sites? The article disputes that:

        "We found a lot of bots suddenly inflating the audience of websites we recognize that are clearly not being run by international organized crime," said Michael Tiffany, the CEO and co-founder of White Ops.

        Unfortunately, the article didn't get around to explaining why spammers would inflate ad impressions on legitimate sites. Are we so sure these legitimate sites aren't clients of marketing agencies that are paid to increase the clicks, never mind how they do it?

        • The article clearly states it is fraudulent bot traffic for selective sites, that doesn't mean the site has to be fraudulent. They said the sites were not organized crime but that doesn't make it any less fraudulent or less intentional. You have a site legitimate or not stealing revenue from others.

        • Unfortunately, the article didn't get around to explaining why spammers would inflate ad impressions on legitimate sites.

          To make them look like real people. Real people click around the internet and gather cookies. If everyone who comes to your website has no advertiser cookies, it makes your website seem like a scam site.

          That's my hypothesis.

        • by gl4ss ( 559668 )

          number of reasons.

          for example, you're an advertising agency. your campaign payout is tied to the number of rise in traffic. so you buy extra traffic. or maybe you buy it to get extension of the contract. once your campaign stops, you stop the extra traffic. then you have black and white data about your campaign being effective.

      • The effects are potentially massive as it funnels funds away from legitimate sites in favor of the corrupt and I say that as someone that despises advertising.

        Since I can't think of a single online ad network that I don't consider corrupt, I think this is more funneling funds away from one corrupt group to another corrupt group.

        • It isn't funneling revenue away from the ad network, it funnels it away from the websites that have advertising on them. More hits generate more money for the advertising networks, not less.

  • by excelsior_gr ( 969383 ) on Wednesday December 10, 2014 @04:19PM (#48567535)

    That's because a "high value customer" doesn't behave much different than a bot. Sadly, it's not the other way around.

    • by TWX ( 665546 )
      I'm a little confused as to what constitutes a high value customer". Wouldn't a customer, to qualify for the title, actually have to buy something?

      This is more like "high value mall-rat" than customer.
      • I'm a little confused as to what constitutes a high value customer". Wouldn't a customer, to qualify for the title, actually have to buy something?

        This is more like "high value mall-rat" than customer.

        Here's (roughly) how it works: advertisers bid in real time for ad space on sites. They use what they know about you to determine how much they want to bid for the ad you're about to see. If they want to advertise for some car dealership, people who have searched for cars are more likely to click on an ad for a car dealership, so the advertiser who wants to serve a car dealership ad will make a higher bid than the advertiser who is hocking gummi bears.

        If you know enough about which user characteristics i

      • I'm a little confused as to what constitutes a high value customer". Wouldn't a customer, to qualify for the title, actually have to buy something?

        Well, first of all, it has to be someone stupid enough to click the ad. That's already plenty.

    • I was thinking the other way around: bots click many ads, so they appear to be interested in looking at ads, and that is what makes them look like a high value customer.

      After all, people like me (AdBlock installed; for that reason alone won't ever click on an ad, not even accidentally) have no value for online advertisers, no matter how rich I am or how much stuff I buy.

  • Comment removed (Score:5, Interesting)

    by account_deleted ( 4530225 ) on Wednesday December 10, 2014 @04:23PM (#48567577)
    Comment removed based on user account deletion
    • by TWX ( 665546 ) on Wednesday December 10, 2014 @04:44PM (#48567807)
      Trouble with that is it'd still require a means by which to know from where the consumer came from, and that could get problematic if the consumer came in several times from different sites before finally purchasing. Who gets credit and who gets credited for the assist? How do you subdivide that? What if the customer clears their browser history? How long does the retailer need to store referrer information in order to be fair to those sites advertising?
    • by tlhIngan ( 30335 )

      Perhaps advertisers should finally move away from the current revenue system that pays per-click and should instead move towards a profit sharing system where the referring website receives a commission based on any sales or executed transactions.

      Which would result in the ad-supported websites dying because very little people actually purchase based on a click through. Instead they'll probably click it, then browse around a bit then come back later and do the transaction.

      I'm sure advertisers probably alread

    • Doesn't work. Most of advertising is not to generate a direct sale; it is to get your name out. To get your brand image in potential customer's minds, so that when later they're in a shop they gear toward the know, i.e. your, brand. It's impressions that really count for most advertising, not click-through rates, though the latter (with the increased number of visitors on your web site) do give you a nice, warm, fuzzy feeling.

    • Perhaps advertisers should finally move away from the current revenue system that pays per-click and should instead move towards a profit sharing system where the referring website receives a commission based on any sales or executed transactions.

      Then you get things like CPALead where you have to choose one of three offers and complete it in order to view a page. One time I visited a site locked by CPALead and all three were to download, install, and try a Windows-exclusive program. Though I have Wine installed on my PC, it still wouldn't let me in due to my Linux user agent.

  • The botnet architects are just honing their skills for next years Turing competition.
  • by erp_consultant ( 2614861 ) on Wednesday December 10, 2014 @04:28PM (#48567629)

    not in the least. I never click on those annoying ads unless its by mistake. Which begs the question...who exactly is clicking on those ads? And how many of those clicks add up to actual sales? I think it's a lot lower than advertisers would lead us to believe.

    • by TWX ( 665546 )
      I will admit to clicking on Google's ad links on their search page when they match exactly what my search was for, but I am aware that they're the ad links and not the search-indexed links.
  • by FictionPimp ( 712802 ) on Wednesday December 10, 2014 @04:33PM (#48567687) Homepage

    http://yro.slashdot.org/story/... [slashdot.org]

    Seems like everyone in this article though it was a bad idea..but it looks like it does hurt them.

  • Thank you very much, Mr. Fraudboto
  • by king neckbeard ( 1801738 ) on Wednesday December 10, 2014 @04:40PM (#48567763)
    It's arguable that they only have themselves to blame for not doing better audits. A lot of malware comes from ads, which end up in botnets, which end up clicking ads to make money.
    • Yo dawg, I heard you like clickbots so I downloaded a clickbot with a clickbot so you can commit click fraud while you commit click fraud.

  • There was this new add - on reported a day or two ago which auto clicked on ads. If really the advertising industry is losing money on that.... Maybe I'll look again into adding that addon on all PC I install FF onto (with the rest of the gang, nos script, no flash, ad block)...
  • One of my ideas was for a gaming network where you played online video games, and you split ad revenue between the player and yourself.

    I then wanted to simplify the system and just have a streaming network where you watched advertisements and got paid. The problem is that someone could simply turn it on and walk away from their computer and there's no way to know they watched the ads. The same thing is going on with bots. Anyone can say they watched ads or clicked on ads with computer, and until you so
  • What no one was anticipating is that the bots are extremely effective of looking like a high value consumer.

    Actually, what is surprising is that these supposed high value customers are not in fact actually bots (instead of essentially being web users programmed to be overconsumers by a history of exposure to saturation advertising and silly enough to click on adverts for stupid things).

    Philosophically, when some thing exhibits indistinguishable from another (e.g, a consumer exhibiting behavior indistinguishable from a bot), are these high-value consumers not really acting like "artificial" bots? Because we know

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