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Thursday, March 09, 2006

Organic SEO vs. PPC

Google Agrees To Pay $90 Million in AdWords Click Fraud Settlement


Google has agreed to settle a class-action CLICK FRAUD LAWSUIT with an offer to provide up to $90 million worth of PPC AdWords credits to website owners who have been charged for invalid clicks. The click fraud settlement, announced today still has to be approved by the judge.

Rumors are that the judge is also seeking monetary damages and Click Fraud system improvements from Google that could help curb escalating Click Fraud trends in the AdWords Pay Per Click system.

Google willingness to settle only with 'make good clicks' on future AdWords advertising campaigns vs. a cash settlement, and abruptly push the AdWords Click Fraud issue under the rug once again is not pleasing the judge. Hundreds of Google Click Fraud lawsuits are flooding the court system and the judge is receiving pressure from the federal courts to stem the Google click faurd litigation tide.

This new AdWords Click Fraud settlement stems from a lawsuit filed in Arkansas by Lane's Gifts and Collectibles, which presented website server log files that demonstrated they had paid for Google AdWords clicks that were fraudulent. Lnae's sought class-action status on behalf of several other Google AdWords search advertisers.

Google general counsel Nicole Wong (one of nearly 400 litigation attorneys now on Google's staff) claims the companies are "near a resolution."

Under the proposed agreement, Google would allow any AdWords advertisers who believe they have paid for invalid clicks at any time since 2002 to contact the company and apply for reimbursement with AdWords credits. To date, Google required AdWords PPC advertisers to contact it within 60 days of the alleged fraudulent click acitivity for log file review.

Google will offer AdWords credits that can be used to purchase new advertising with Google. "We do not know how many advertisers will apply and receive credits, but under the agreement, the total amount of credits, plus attorneys fees, will not exceed $90 million," Ms. Wong says.

This single case is only the tip of the iceberg as Google AdWords Click Fraud is running rampant.

If your are evaluating Organic SEO vs. PPC click fraud needs consideration and analysis.

If you are outsourcing for PPC/SEM Campaign Management and your monthly invoices are increasing substantially along with your SEM management fees, consider pulling PPC/SEM back in house or at least assign an internal gatekeeper, monitor your website server logs and police your PPC campaigns...it might just save your budget.

Also analyze your organic search engine optimization strategies and contact a proven organic search engine optimization provider that is dedicated strictly to organic seo best practices.

If searchers prefer organic search results 6 to 1 versus the paid advertising (PPC listings) isn't this cause enough for you to address organic website optimization and make a LONG-TERM organic seo investment resulting in real website traffic and new business vs. short-term, leased, expensive, "click fraud riddled" SEM website activity.

Stay Tuned as this Peak Positions Organic SEO Blog we will provide details on many Google AdWords Click Fraud Lawsuits now active and preceeding in the courts in 2006.