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We’ve Seen This Movie Before…On Traffic of Good Intent

By - April 26, 2013

(image) Back in 2005 I whipped off a post with a title that has recently become relevant again – “Traffic of Good Intent.” That post keyed off  a major issue in the burgeoning search industry – click fraud. In the early days of search, click fraud was a huge problem (that link is from 2002!). Pundits (like me) claimed that because everyone was getting paid from fraud, it was “something of a whistling-past-the-graveyard issue for the entire (industry).” Cnet ran a story in 2004 identifying bad actors who created fake content, then ran robots over AdSense links on those pages. It blamed the open nature of the Web as fueling the fraudsters, and it noted that Google could not comment, because  it was in its quiet period before an IPO.

But once public, Google did respond, suing bad actors and posting extensive explanations of its anti-fraud practices. Conversely, a major fraud-based class action lawsuit was filed against all of the major search engines. Subsequent research suggested that as much as 30% of commercial clicks were fraudulent  – remember, this was after Google had gone public, and after the issue had been well-documented and endlessly discussed in the business and industry press. The major players in search finally banded together to fight the problem – understanding full well that without a united front and open communication, trust would never be established.

Think about that little history lesson – a massive, emerging new industry, one that was upending the entire marketing ecosystem, was operating under a constant cloud of “fraud” which may have been poisoning nearly a third of the revenues in the space. Yet billions in revenue and hundreds of billions in market value was still created. And after several years of lawsuits, negative press, and lord-knows-how-much-fraud, the clickfraud story has pretty much been forgotten.

Sound familiar?

It should. Because the same movie is once again playing, but this time the problem has migrated to the open ecosystem of programmatic display. As anyone who’s studied the LUMAscape knows, we now have a VC-fueled industry worth billions, with many players primed to go public in the coming year or so. And the original search players – Google in particular, but also Microsoft and Yahoo! – are also major actors in this new industry.

My post from January of this year – It’s Time To Call Out Fraud In The Adtech Ecosystem – summarized the new breed of fraud in our industry, and recently, many publications  have intensified their coverage of the topic. In late February, I invited a handful of adtech CEOs to a lunch where we discussed the issue, and everyone at the table – from AppNexus to Google, OpenX to MediaOcean – agreed that it was time to address the problem head on.

And that’s how we got to the news  this past week that the IAB is standing up a task force on “Traffic of Good Intent.” I’m proud to be a co-chair of the group (and yes, the name does come from that 2005 post in these pages). This time around, there are many more players, a much larger industry, and a far more complicated ecosystem. But it’s worth remembering that bad actors always take advantage of open systems. It’s up to us to unite and drive them back. We should all be trading in traffic of good intent – real human beings, engaged with real content and services across the Internet. Our customers, partners, investors, and our good company names depend on it.

I look forward to the work.

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3 thoughts on “We’ve Seen This Movie Before…On Traffic of Good Intent

  1. John Murphy says:

    John, you’re absolutely right: It’s deja vu all over again. As someone who was in the trenches for the first fraud battle (and is again taking up that fight in display), I can attest to the similarities. Luckily, the lessons and techniques learned in the effort to root out fraud in search remain relevant in display. We just have to have the courage as an industry to use them.

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