Google Inc. has exposed a Web site “resource center” that concentrates on the thorny matter of click fraud, which many believe a possible threat to the company’s main source of revenue: pay-per-click advertising. In the pay-per-click advertisment, advertisers pay every time some body clicks on their ads that are linked to a Web page. Click fraud occurs when companies click on competitors’ ads to build up their ad spending.
Click fraud has led advertisers to sue Google, Yahoo Inc. and other people of pay per click ads. Google attained a landmark settlement of a click-fraud class action lawsuit previous year that many described as a huge success for the company. A loss could have probably cost the company hundreds of millions of dollars, but instead Google managed to settle the case for US$90 million.