July 17, 2006, 12:00 AM

Click Fraud rate tops 20% for high-priced search terms, study says

The overall industry average click fraud rate was 14.1% in the second quarter, but the average click-fraud rate for search terms valued at $2 or more was 20.2%, Click Forensics reports in its Click Fraud Index.

The overall industry average click fraud rate was 14.1% in the second quarter, but the average click-fraud rate for search terms valued at $2 or more was 20.2%, Click Forensics reports in its Click Fraud Index.

The overall industry average click fraud rate in Q2 was 14.1%, up from 13.7% in Q1.

The Q1 industry average click fraud rate was 12.8% for companies running online ad campaigns through tier 1 search providers such as Yahoo and Google, up from 12.1% in Q1; 20.3% on campaigns through tier 2 search providers, down from 21.3%; and 27.1% through tier 3 search providers, down from 29.8%.

The largest percentage of click fraud, at over 88%, originated from the U.S. and Canada. Outside of North America, the largest amount originated in India, Click Forensics said.

It also noted that the average pay-per-click cost for the top keyword terms across the five biggest search advertising industries-retail, financial services, health-and-fitness, technology and entertainment-was $4.51 in Q2, down from $4.75 in Q1.

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