How to Protect Your Brand From Click Fraud in China

I’m often asked about click fraud on Baidu. How can I know if my account is receiving fraudulent clicks? How can I protect my company from click fraud? What does Baidu do to prevent click fraud?

How Does Baidu Deal With Click Fraud?

To reduce fraudulent clicks, Baidu has developed a sophisticated system to detect suspicious patterns coupled with a click fraud department of over 3,000 dedicated staff.

Kaiser Kuo, Baidu’s director of international communications, states that Baidu is quite advanced when it comes to dealing with click fraud.

“Click fraud is a problem for all search marketing platforms, and here at Baidu we take the issue very seriously. Paid search is our lifeblood, and allowing click fraud to turn into such a serious problem that it impacted our business and scared off customers would be suicidal.

The most common manifestation of attempted click fraud on Baidu is of course competitors who try to run up a customer’s bill by repeated clicking on a paid search link. We have a three-tier defense to ensure that customers aren’t victims of this sort of thing.

First, we monitor all clicks and look at activity for unusual patterns – for instance, repeated clicks from a single IP address or cluster of IP addresses – and any suspicious clicks that are detected simply aren’t counted as clicks.

The second line of defense is regular monitoring of logs, looking at data in those logs for suspicious patterns through algorithmic comparisons covering longer periods of time. We’ll look across different keywords bought by a given customer, at clicks from IP addresses from known past offenders, for clicks that exhibit patterns that suggest botnet activity and so forth. Then we’ll credit back money for suspicious clicks, without the customer having to alert us to possible click fraud first.

Finally, in cases where we’ve already been paid, we’ll examine on a case-by-case basis any activity flagged by customers: a run-up in costs without a commensurate run-up in leads, for instance. This can result in the discovery of new patterns and we certainly encourage any customer who suspects they may have been victim to such practices to let us know. We’re as eager as our customers to address these issues!”

What Should You Do to Protect Yourself From Click Fraud?

Watch Out for Sudden Changes
Watch out for sudden increases in daily spending or clicks for a certain keyword or group of keywords. If you see such an increase, you can first check your website usage. If sales went up with clicks, it’s obviously not a problem!

If the increase in clicks was quite pronounced, and did not result in greater sales or website usage, you should ask Baidu or your pay per click management provider to help you investigate.

Make Use of Baidu’s Invalid Click Report

Baidu also provides an “invalid click report” that can help you see which clicks were automatically considered invalid by Baidu. Of course, you aren’t charged for invalid clicks.

The columns in the image below show the date, total clicks, filtered clicks, the percentage of filtered clicks and the price of the invalid clicks you would have paid if they had not been filtered out.

Click to enlarge

Take Measures to Limit Your Campaign

You can also proactively place limits on your campaign to reduce the risk of click fraud. The measures below are not specific to click fraud. They will help decrease expenses by only displaying ads to people that are most likely to make a purchase.

  1. Limit your daily expenditure. It’s best practice to put a cap on your daily expenditure so that you don’t exceed your budget. Although rare, it is possible that a competitor with advanced click fraud tactics could suddenly ramp up your costs. Limiting your daily spend will protect you against this. However, remember that this would also result in your ads not being shown to valid potential customers after you reach your daily limit.
  2. Impose time restrictions. I usually recommend that ads be active while employees are available to take customer inquiries. This is especially important in China, where Internet users expect a live person to talk to via chat box, QQ messenger or phone
  3. Only choose keywords relevant to your business. Use negative keywords to filter out traffic not relevant to your business.
  4. Manually create a white list or black list of websites that content network ads appear on. Both Baidu Union and the Google AdWords content network place ads on websites that are seemingly more advanced at performing click fraud than Baidu and Google are at preventing click fraud. These should be monitored and corrected for.

There are also applications available to help reduce click fraud, such as SEM 360 (Chinese). I’ve tried such software in the past and have not been impressed with the results. The reason is that it blocks valid traffic as well as invalid traffic. Plus, it blocks traffic that Baidu won’t charge for anyway, such as duplicate clicks from the same IP address. If you know otherwise, let me know what kind of great click fraud detection software there is out there in the comments.

Final Tip: Don’t Always Blame Click Fraud

I’ve seen click fraud blamed much too often. From my experience, when visitors aren’t converting, there is almost always something other than click fraud that is the culprit. I advise that you look to click fraud only if there is a pronounced increase in traffic that isn’t bringing value to your business. Other times, you should focus on improving your website navigation, ad creatives, website copy and PPC bids. There are quite a few links in the chain from search to purchase and all need to be optimized.

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HTML 5 - Conclusion of the previous articles

THE BOTTOM LINE

  • Web-based HTML5 will replace the majority of native apps over the next 3 to 5 years.
  • Native apps will stay on the scene for a long time, and will probably always be relevant for some types of apps such as games.
  • HTML5 will allow online software and content to be much more interactive and richer.
  • As a result of HTML5 proliferation, the power of app gatekeepers like Apple will DIMINISH in the future, not grow.
  • All of this will have big impact on the distribution (web instead of app stores) and monetization (primarily, still, advertising-driven) of content.
  • This will also shift the balance of power between content providers and platform providers modestly back towards content providers: Apple and other “store” operators will have such tight control over distribution.
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What The HTML5 Future Will Look Like

HTML5 is a promise of web-based software and experiences becoming much richer.

Native iPhone and iPad apps show what the web could look and behave like a few years from now in terms of interactivity and beauty of use.

One of the biggest boosters of HTML5 has been Elevation Partners co-founder Roger McNamee. It’s part of his 10 hypotheses for tech investing (see the slides at right, which you can click to enlarge), and he’s also made it part of a talk earlier this year.

Even though we think HTML5 will be a longer time coming than McNamee does, we agree with his vision.

Roger McNamee Investing Hypotheses

Roger McNamee by permission

HTML5 is the next step after the app model (click to enlarge)

According to McNamee, this is what HTML5 will enable:

  • Much more interactive online content. “In HTML5, an ad is an app, a tweet is an app, everything is an app.” “It’s a blank sheet of paper, and creativity rules again.”
  • McNamee believes HTML5 will make online content go from a commodity to a differentiated good because of this added interactivity. (We don’t think online content is quite the commodity that most people think.) Because HTML5 can make sites rich and interactive, engagement on a site can go from seconds to minutes.
  • HTML5 will also change online advertising, McNamee says, by making it richer and more interactive. Ads will become interactive experiences where demand can be generated and satisfied in the same place, which is impossible with other forms of advertising today (except infomercials).

So here’s THE BOTTOM LINE →

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An Example of an HTML 5 Pioneer: The Financial Times

ft financial times ipad app

The FT was the first big media publisher to go the HTML5 route. To find out about how this is going, we spoke with Stephen Pinches, Head of Emerging Technologies at the FT.

Here’s what we learned:

  • The FT went the HTML5 because of the lower cost and also the control: they can test and deploy features much faster, and retain their business model based on a single username and password.
  • It’s still a technical challenge to do HTML5 apps, because the standards are not yet fully defined.
  • Pinches thinks the app store is a poor model for distribution: big brands will get found regardless, and smaller brands have more ways to market themselves to get discovered on the web. (This is another edge for HTML5.)
  • HTML5 is still difficult to implement on the web, because older browsers like Internet Explorer 6 and 7 are still so prevalent (they don’t support HTML5). Web sites that don’t have legacy desktop apps will serve up new experiences, Pinches thinks.

So, what will the HTML5 future look like?

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How HTML5 Will Take Over - Part 4

growingNative apps seem to have lots of advantages over HTML5. Why, then, do we think HTML5 will take over?

Because HTML5 has all the hallmarks of a disruptive technology.

Within Clay Christensen’s famous technological disruption framework, a technology comes along that is inferior to the incumbent, but is cheaper and has something key the incumbent doesn’t have. The newcomer takes the low end of the market. And, over time, the new, cheaper technology gets better and better, and as it does it starts to eat the rest of the market.

This is what HTML5 is, right now. It’s less good than native apps at lots of things. But the technology is improving. And it is cheaper to produce HTML5 apps than native apps.

What’s more, for certain types of apps–apps that represent a majority of the apps out there–HTML5 is particularly useful:

  • Media apps. Apps that display text, images and video and monetize through ads and subscriptions can be done more cheaply and effectively through HTML5. Apple has been trying to get media inside the native app world through special distribution schemes like “newsstand”, but most of the big media companies aren’t biting.
  • “Access” apps, i.e. apps that just let you access an account with a service, like a bank or a utility, from a mobile device.

Another thing that shows HTML5’s promise is the increasing prevalence of shell apps. These are apps that have a native “shell” so they can get in the app stores, but where the entire functionality is done via HTML5. One such shell app is Facebook’s iPad app. These “hybrid” apps get the best of both worlds and mean more developing resources will shift to HTML5 over time. These “wrapper” apps will also end up on the web as HTML5 improves.

All that being said, it will take a lot of time for HTML5 to replace apps—more than HTML5 bulls think.

HTML5 support

binvisions

Top sites increasingly support HTML5

Why?

  • First, history has shown that technologies tend to overpromise in the short term and overdeliver in the long run.
  • Second, HTML5 still isn’t ready for prime time. There are many things that HTML5 apps just can’t do right now that native apps can, such as location, payments and more. And native apps are richer and prettier. Another huge subset of apps that will stay native for a very long time (perhaps forever) are games, which require the richness of native software.
  • Third, HTML5 comes from a consortium. This means the technology will evolve slowly. It means the technology isn’t really worth using until everyone adopts it. Once W3C decides on a new HTML5 standard, Microsoft, Google, Mozilla and Apple have to update their browsers for the standard to be widely used. When Apple decides on a new iOS standard, it just needs to implement it and developers have to use it.

So HTML5 will likely progressively replace apps as the feature set improves, starting with media and “access” apps and ending with games.

Native apps will still be part of the landscape for the foreseeable future, but their number and power will be greatly reduced after a while–much as many PC users today “live inside their browsers” but still use some native apps.

For an example of the benefits to going to HTML5 instead of native Apps, the FT is a good example…

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HTML5 vs Native Apps: Part 3

We’ve summarized the pros and cons of HTML5 vs Apps in a simple table:

Item

Winner

Why

Cost html5 logo small HTML5 apps are cheaper to make because they’re cross-platform. If you want to build an app on every platform, you need to build it almost from scratch. With HTML5, you can (mostly) develop once and be up and running on every platform.

According to Romain Goyet, CTO of app development company Applidium, engineers are more comfortable with HTML5, to boot.

User experience app store logo On this score, so far, native apps win. “All the most beautiful apps are native”, Goyet says. This is because HTML5 technology still isn’t evolved enough, and also because you can do more with native code.
Features app store logo This is a big problem with HTML5 right now. There are some things HTML5 simply can’t do. For example, browser apps cannot access a phone’s GPS, so for any app that relies on location data HTML5 is a non-starter. This should change as HTML5 evolves
Distribution html5 logo small This could be a wash, but we’ll award it to HTML5. Some people are very happy with the native/app store distribution model. But ultimately the more open web model will let more people have distribution. It will also reduce the power of gatekeepers like Apple.
Monetization app store logo With app stores and native apps hooked into services like iTunes that have your credit card, native apps are just much easier to monetize than HTML5.

It looks like native apps have the edge. So why do we think HTML5 will eventually take over?

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HTML 5 Will Replace Native Apps - Part 2

People keep talking about HTML5, but it is poorly understood.

First, some context. You should know that HTML is the basic programming language that is used to render pages on the world wide web. The page you’re looking at right now is written in HTML.

You should also know that since the web became popular circa 1995, many other technologies have been bolted on to HTML to make web pages richer and more interactive: technologies like Dynamic HTML, JavaScript and Flash.

HTML5 is the newest and most advanced version of HTML. It is a big deal for two reasons:

  • It wants to replace and supersede every other web language that came before it.
  • HTML5 promises to make the web as rich and interactive as native apps. Once HTML5 is mature and widely adopted, advocates argue, all of the things that can be done in native software will also be doable on the web. Given that the web has been disrupting native software, transforming whole industries in the process, this is a momentous development.  It means that the web could replace all client-based software and move us fully to a world where computers are “thin clients” and all the computing happens on the web and in the cloud.

Another thing you need to know about HTML5 is—and this is important, as we’ll see—is that it is technology done by committee. HTML5 needs to be adopted by everyone to be useful, so it is being built by a consortium, the World Wide Web Consortium (W3C), which is the main international standards organization for the web.

This doesn’t mean that HTML5 is a bad technology, but it certainly means that it is evolving slowly and haphazardly.

The video at the top of this page shows how HTML5 can enable rich and interactive apps within the browser.

Ok, so what are the advantages and drawbacks of HTML5 versus native apps?

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HTML5 Will Replace Native Apps - PART 1

1. Why This Issue Matters

HTML5 support

Top sites increasingly support HTML5

HTML5 vs. native apps sounds like a technical debate, but that’s not just what this is.

The question of whether HTML5 or native apps will dominate the future has an impact on many things, including:

  • Distribution. How applications are distributed is different depending on whether they are native or HTML5. Native apps are distributed through app stores and markets controlled by the owners of the platforms (mostly iOS and Android). HTML5 is distributed through the rules of the open web: the link economy, whether through search or social platforms.
  • Monetization. HTML5 and native apps are probably monetized differently. Native apps come with one-click purchase options built into mobile platforms, and so can be monetized easily with direct consumer payments, even though this increased effectiveness comes at the cost of having to pay the gatekeeper. Conversely, HTML5 apps will tend to be monetized more through advertising, because payments will be less user-friendly.
  • Platform power and network effects. One of the reasons Apple’s app distribution gateway is so powerful right now is that app developers have to conform with Apple’s rules and give Apple a piece of the action. Apple’s market share, meanwhile, creates network effects and lock-in: If they want to reach users, developers need to work with Apple. If and when developers can build excellent iPhone and iPad functionality on the web using HTML5, meanwhile, developers can cut Apple out of the loop. This will reduce the network effects (and financial power) of Apple’s platform.
  • Functionality. Right now, native apps can do a lot more than HTML5 apps. HTML5 apps will get better, but not as fast as some HTML5 advocates think. (More on that later.)
  • Freedom of speech. The web is a totally open medium that allows for full freedom of speech and expression. App stores (famously) are “curated” environments where there is less freedom of speech and expression.

So this issue isn’t just about technology. It will affect every player in the technology industry, and change a lot of the landscape. But first, just what is HTML5?

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HTML5 Will Replace Native Apps–But It Will Take Longer Than You Think

As we enter a post-PC era dominated by many devices synced through the cloud, one crucial question is this:

How will we consume software? Will it be mostly through the web, or will it be through apps native to our devices?

This is more than a technical debate: it has implications for distribution, monetization, and functionality. It also affects which companies will win.

Right now most apps on post-PC platforms like Android and iOS are native apps, meaning that they are written for a specific platform.

Many people think apps are making the web obsolete, and that we’re in a new app world. Wired magazine even had a cover on this provocatively titled “The Web Is Dead.”

A new technology called HTML5, however, allows developers to build rich web-based apps that run on any device via a standard web browser.

Some people think HTML5 will save the web, rendering native platform-dependent apps obsolete.

So, which will win? Native apps or HTML5?

We believe that HTML5 will replace apps, but we also think this process will take longer than HTML5 advocates think.

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Search Engine Optimization Is Dead, Long Live Web Presence Optimization

“The Web Is Dead” screamed the cover of Wired Magazine last year. At first I thought to myself, yeah right! Then as if enlightened I thought to myself, they are absolutely right. Consumers are spending less and less time on the web and spending more time on social platforms, apps, mobile devices… it was about that time that I broke into a cold sweat. As one of the largest search engine optimization companies in India, all we had ever done is optimized websites for clients. Will we also cease to exist once the web dies?

It is in desperate times like these that one needs to change the question. The question is “What do we need to do to remain relevant?” The answer is simple – instead of optimizing websites, we would need to learn how to optimize the web presence for clients.

Now that we have a head start, the time has come for us to share the need for web presence optimization, benefits, and mainly ideas and processes that large enterprises can follow to execute a web presence strategy.

Need for Web Presence Optimization

In the early days of the Internet, the company website was the primary source for information for consumers. Today consumers are engaging with brands through YouTube, Facebook, Twitter, Foursquare, mobile applications, etc., thus it is almost essential for your prospects to find you during these engagements.

Benefits

Making two into 10: Most search engines including Google list only two results from your website even for your brand search. Unless you have optimized for the web, all the remaining results on the first page of Google shall be results that you don’t control. When you optimize for “web presence,” the first 10 results from the search engine could be controlled by you.

Online reputation management: Consumers have a tendency to click on a negative result of a brand rather than a positive review, thus in many cases less flattering results find a place in the top 10 results.

Shortcut to ranking: It is getting increasingly difficult to rank your website for core terms as search engines give a lot of importance to the age of the domain as well as the age of the back links. Universal search of Google makes it easier to identify lack of universal content for specific keywords and then create a content creation strategy to rank for the same.

Traffic from the right psychographic audiences: If you deal in car insurance, you can target SEO for only keywords such as car insurance. However, in web presence optimization, you can target people who are from specific psychographics. Example: a video that demonstrates what precautions you must take when you go off-road.

Creating intellectual property: Web presence optimization is about creating content in terms of videos, photographs, blogs,and social/mobile applications, all of which becomes IP for the brand. It may continue to engage your target group for years to come, the older the content, the better value it delivers in the web optimization process.

Multiplier effect on paid media: Web presence optimization not only helps in organic traffic, but it also helps in reducing cost of clicks on paid media. Google Quality Score is getting more and more dependant on landing page content as well user engagement after the click, thus reducing cost of paid media in the process.

Ideas to Execute Web Presence Optimization

Web presence optimization is about creating content for the right psychographic audiences rather than demographics, thus one needs to forget the conventional process of SEC, age, gender, and focus on what is the lifestyle of your perfect target group and what content shall be most relevant to them. Here are some tools that you can use to aid the process.

Google traffic estimator tool: Today one can identify the approximate number of searches for any keyword; this must be the starting point for web presence-oriented content creation. If no one is searching for that keyword, it may not make sense creating content for the same.

Identify low-hanging fruit: Once you have identified the type of content you should create, analyze the content that is currently raking for that keyword from universal search point of view. Fight battles that are easier to win, no use creating content where the top eight ranks are dominated by authoritative sites that may be difficult to beat. You will also find an obscure image, video, or blog ranking for a high volume keyword; start your journey there.

Using paid media to beef up value of content: Most of the universal search algorithms take the number of video views into account while ranking that content. It may be a good idea to create the initial video views through social media and paid media. Initially, the snowball requires a push to start rolling.

Identifying strategies for different segments of universal search:
Each unit of universal search content requires a different strategy, thus one cannot have a uniform strategy to rank for all parts of web presence optimization. It is important to segment universal search into video, images, news, wiki, social media, and user-generated content while planning the execution of a web presence endeavor.

Google Trends and Insights: Google Traffic estimator gives you an idea of the number of searches for the last month, while Google Search Insights and Trends allow you to predict the future. If a keyword is showing a hockey stick curve trend, it may be a good idea to create content in advance based on the trend.

Web analytics: Many a time we get enamored by the volume of searches and forget about the keywords that deliver the conversions to us. It is important to balance the web presence optimization strategy with keywords that are converting into customers.

You can use surveys to create content. The key is to start the journey and once you start, the content engagement itself would give you insights on how further content creation can be planned.

My company believes that content creation is also the spinal cord of your social media strategy, thus brands can receive benefits across organic, paid, and social media by planning and executing a strategic content creation strategy as a part of their marketing endeavors.

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