Not too long ago, click fraud was the topic du jour, with a number of advertisers saying they were cutting back on pay per click ad spending because of the possibility of fraud. But a new report from click fraud tracker Click Forensics says click fraud rates have declined nearly 25 percent over the last year. The average click fraud rate was 12.7 percent last quarter, down from 16.2 percent during the same period a year ago.
Obviously, click fraud hasn’t gone away. Just over a month ago, Microsoft (NSDQ: MSFT) filed its first ever click fraud lawsuit, targeting a group that allegedly drained the ad budgets of rivals by bombarding rival ads with clicks.
Still, the Microsoft lawsuit appears to have been an exception in a sector that was heavy litigation by the major players a few years ago. What’s driving the fall? Click Forensics says ad networks are getting better at detecting and blocking invalid traffic sources (Via Andy Beal’s Marketing Pilgrim).