Saturday, August 15, 2009

Click tricks? Google 'inflation ads'

The world's most powerful Internet company, Google, has been accused of advertising client overcharging and to exaggerate the number of visits to their Web site.

Google has dominated the world of online information for nearly a decade and apart from providing limited information on any topic, but also a profitable business of digital advertising.

Professor Benjamin Edelman of the Harvard Business School in the United States said that Google's inflation rate of about 10 percent and that all important figures hit often exaggerated.

Professor Edelman said he was a big critic of Google and other search engines who exaggerate their advertising rates.

"I think for Google advertising rates can be 10 percent lower if not for the type of inflation I've been looking at lately," he said.

"Ten percent may not sound like much. Of course, when you spend big money advertisers spend big, 10 percent actually increased.

"All the more because this is only a direct fraud, charging for services not actually provided."

A Google spokesperson has denied the claims, says Professor Edelman allegedly tainted because he was a consultant for one of Google's main rival, Microsoft.

Spokesman said that Professor Edelman's visit to Australia was sponsored by Microsoft and is part of an "anti-Google" tour.

Professor Edelman said that one of the more disturbing examples of online advertising fraud is a way of displaying search engine advertising.

"Advertisers count on search engines, especially these days, Google, to provide them with a customer who will actually buy their products," he said.

"Good luck advertisers to measure the effectiveness in order to see whether they get what they pay.

"I just found a set of syndicators, Google's partners, which displays ads in ways that are very complicated. When you've been on the Dell website, they may show your ads for Dell.

"What's that? Displays a Dell ad man who was at Dell; was a fraud. It's Dell overcharging, but it is very difficult for Dell's ever to understand. So that daunting prospect for marketers who spend big money on this type search advertising. "

Professor Edelman says Google's sales based on their promise that they can measure how well the ads do.

"They say, they have a way to measure where the consumer comes through advertising," he said.

"But unfortunately some of the more disgusting their partners have found ways to get the system to claim credit for the work they do not really do."

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