Recent estimates indicate that there are approximately 1 Trillion searches per year using Google and at least 95% of Google’s total revenue comes from advertising.
Advertisers rely on the relevance of Google ad placement, Google reporting statistics, and the quality of the clicks their ads receive. Publishers in turn count on advertiser participation, relevant ads which create a good experience for users, and an accurate and reliable source of income which contributes to the success of their websites and business.
A strongly voiced criticism lies in the problem of advertising Network companies (Google for example) losing money to undetected click fraud when paying out to the publisher but continuing to make more money when collecting fees from the advertiser. Because of the spread between what they collect and what they pay out, unfettered click fraud would create short-term profits for the Advertising Networks.
Click fraud refers to clicks generated with malicious or fraudulent intent. This causes financial losses to the Google AdWords advertiser.
One of the main challenges of click fraud is that while Advertising networks may try to stop fraud by all parties they often do not know which clicks are legitimate. Unlike fraud committed by the publisher, it is difficult to know who should pay when past click fraud is found. Publishers resent having to pay refunds for something that is not their fault.