Google Calls Click Fraud A Billion-Dollar Problem

MOUNTAIN VIEW, Calif. — Search engine and online advertising giant Google loses about $1 billion a year to click fraud, the company announced on its AdWords blog.

The main cause of fraudulent clicks, according to Google’s business product manager Shuman Ghosemajumder, are bots or other software that generate false clicks.

Ghosemajumder said that invalid clicks are less than 10 percent of all clicks since Google launched AdWords in 2002. Every percentage point of invalid clicks Google “throws out” represents more than $100 million lost in potential revenue.

Google determines a fraudulent click via a three-stage process. Most false clicks are identified in the first and second stages using Google’s proprietary software. The third stage is when advertisers report click fraud to Google and the company investigates. Just .02 percent of false clicks get past the first two stages, Ghosemajumder said.

“Click fraud protection is something we take very seriously, and it requires a great deal of research and development to do effectively,” Ghosemajumder said in the blog post. “We are disclosing these network-wide figures in order to provide greater transparency to Google advertisers and the marketplace as a whole.”

Online advertisers that are members of the AdWords program pay Google a fee from the number of click-throughs its ads receive, while site operators earn a commission for each surfer’s click. Google does not charge its advertisers for clicks it determines to be invalid.

Google’s critics have continually harped that the search engine giant has not implemented enough preventative measures to combat invalid clicks, which is costing its advertisers money. To answer critics, Google launched the AdWords Report Center, which gives advertisers the ability to track their ads and examine fraudulent clicks.

Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Gataca Introduces Passkey Integration

Spain-based age verification provider Gataca has debuted its new passkey integration.

GloryPay Announces New Financial App

European fintech company GloryPay has announced the launch of its financial app for industry members.

Creator of Hentaied, Parasited Launches New Site 'MonsterPorn'

Romero Mr. Alien, the creator of Parasited and Hentaied, has launched new paysite MonsterPorn.com.

House of Lords Approves UK Plan to Outlaw 'Choking' Content

The House of Lords, the U.K.’s upper house of Parliament, has agreed to amendments to the pending Crime and Policing Bill that would make depicting “choking” in pornography illegal and designate it a “priority offense” under the Online Safety Act.

Indiana Sues Aylo Over AV, Calls IP Address Blocking 'Insufficient'

Indiana Attorney General Todd Rokita has filed a lawsuit against Aylo, alleging that the company and its affiliates have violated both Indiana’s age verification law and the state’s Deceptive Consumer Sales Act.

House Committee Amends, Advances Federal AV Bill

A U.S. House of Representatives subcommittee voted Thursday to amend the SCREEN Act, which would make site-based age verification of users seeking to access adult content federal law, and to advance the bill for review by the full Committee on Energy and Commerce.

New AI Companion Platform 'SinfulXAI' Launches

SinfulXAI, a new AI companion platform, has officially launched.

FSC 2026/2027 Board Members Announced

The Free Speech Coalition (FSC) has announced the results of its 2026/2027 Board of Directors election.

Report: AVS Group Beefs Up AV After $1.3 Million Fine

Adult content provider AVS Group has begun to institute robust age checks on some of its websites after U.K. media regulator Ofcom last week imposed a penalty of approximately $1.3 million for noncompliance with Online Safety Act regulations, the BBC is reporting.

FSC: Federal Report Confirms Unfair Banking Discrimination Against Adult Industry

The Free Speech Coalition (FSC) today announced that a federal report on debanking has concluded that several U.S. banks engaged in discriminatory banking practices against members of the adult industry.

Show More