A needle of Hope
amid a haystack of Chaos.

Massive profits, mediocre growth

Created: Sunday, October 22nd, 2006
18:19:35 UTC
Last modified: Sunday, October 22nd, 2006
18:19:55 UTC

Listen, the clickfraud gates were opened in March 2006. Certain major corporations (I only know of 1 but there may be others) secretly encourage clickfraud by arbitrarily reducing their filters and dogmatically refusing to prosecute scammers. One company in particular is in a very public alliance with these asshats and simultaneously uses it to generate billions in income *and* as both a scapegoat for poor quality (which it probably artificially caused to happen, to increase revenue!) and to strong-arm the more naive, honest SEOs into what not to do, so as to create an even more unfair field for the blackhats to amass pay per click fortunes (and w/ the company collecting 50%).

The company collects significantly less from the scammers (i've heard only 30%, i've seen 50%) merely because it makes so much more and uses them collective as market movers to arbitrarily and artificially increase the bid price of fringe keywords in an industry by industry sweep. It's like mini-hostile take overs. The scammers come into your market, make a few blackhat sites working off the Company's new exploits, giving them billions of pages and billions of visitors, and then the blackhats bid *each*other* up. Then they wait for mom and pop businesses, desperate to maintain visibility on the organic listings page, bid up the keywords higher and then ... profit.

I've seen this so much since July 2006 and let me tell you, if the Company has had any involvement at all in the process, or even just allowed it to continue, it is possible they could be indicted uder the RICO Act for organized fraud against all the thousands of victimized ad bidders.

Really, i think it's high time a site like TW do an expose on this underground phenomenon. Or just go the easy way and explain away how a company can become so much more profoundly profitable as it takes on ever increasing costs on income-free services and has not had nearly as profound user growth.

While I know Google missed its 1Q 2006 projections (causing stock to nearly collapse in March — decline of 25% in a few days), I do not know how they got so much more revenue in any quarter sense, esp. the 3Q 2006! They're getting less traffic than 1Q 2006! And we all know advertising is the ONLY income stream. Just doesn't make sense to me at all.