Just did a forum post regarding BigReds.com suing Yahoo for Overture PPC Click Frauds. PPC ads are used to get instant traffic as well as targeted traffic to the your site. You can have more control than SEO, in that you can target different keywords, stop a campaign at any time and easily measure the effectiviness in the short term.
However, it is expected that a portion of the traffic you're getting will be from click frauds. Useless traffic that never had a chance in the first place to generate the action that you want on your site. How much of these useless traffic that you get also largely depends on how well the PPC Network monitors, enforce their rules and deter fraud. But even then, it's a hard, time consuming, resource draining thing to do when it comes to preventing PPC click frauds. There's a delay in detecting and realising that it's fraud and there are many methods out there to increase that delay time, sufficiently enough to receive payment Different from CPA where you help the merchant/advertiser to get what they want first and then receiving payment for it.
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