Ben Edelman Accuses Google Of Conversion Inflation Fraud

In a new report by Harvard professor Ben Edelman shows how he believes Google and its partners inflate conversion rates and, in turn, increase advertising costs. From his report: Google and its partners systematically inflate advertisers’ conversion rates by interceding in transactions advertisers would otherwise have received for free. This conversion-inflation syndication fraud overstates the […]

Chat with SearchBot

In a new report by Harvard professor Ben Edelman shows how he believes Google and its partners inflate conversion rates and, in turn, increase advertising costs. From his report:

Google and its partners systematically inflate advertisers’ conversion rates by interceding in transactions advertisers would otherwise have received for free. This conversion-inflation syndication fraud overstates the true effectiveness of the ads Google delivers — leading advertisers to pay more than they should.

He cites four cases that can be read in full in his report, but here is a summary:

Traffic source How users are found What would have happened had Google and its partners not interceded
WhenU – adware User requests advertiser’s site. Adware covers advertiser’s site with pay-per-click listings. Advertiser’s site displays as usual, with no covering popup. User stays at advertiser’s site, and advertiser pays no PPC fee.
SmileyCentral – toolbar Reconfigured browser tricks user into running a “search” for a site’s domain name. User’s browser retains its ordinary configuration. User runs a direct navigation, and advertiser pays no PPC fee.
Typosquatting User misspells advertiser’s domain name. User’s browser shows a list of alternatives, and user selects one — reaching advertiser’s site at no charge. Or, user sees an error page, notices the misspelling, and corrects the spelling to reach the advertiser’s site without a PPC fee.
Chrome – browser suggestions User typing a web address is encouraged to run a search instead. User finishes typing the site’s web address and reaches the advertiser’s site without a PPC fee.

Personally, I might not agree 100% with all these cases. We may dig deeper into this report at a later time.


About the author

Barry Schwartz
Staff
Barry Schwartz is a Contributing Editor to Search Engine Land and a member of the programming team for SMX events. He owns RustyBrick, a NY based web consulting firm. He also runs Search Engine Roundtable, a popular search blog on very advanced SEM topics. Barry can be followed on Twitter here.

Get the must-read newsletter for search marketers.