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China click fraud lands Baidu in court

Baidu, China’s leading search engine, is defending itself in court from charges of click fraud by online advertisters in China. Analysys International, an IT research firm, conducted a survey of 2,000 online advertisers in China and found that one-third believed they were victiims of click fraud. Anyalys conducted the survey after their click throughs grew rapidly without any increase in business. Baidu has previoulsy settled out of court in other cases.

Baidu executives would not speak with BusinessWeek for this article, but a Baidu spokeswoman did e-mail a statement explaining the company’s policy regarding click fraud. “Baidu places the highest priority on preventing fraudulent clicks,” the statement said.

“We have set up numerous measures both through automated technology and manual efforts to prevent fraudulent clicks and the effectiveness of which [has] been verified by [an] independent third party. We believe our anti-fraudulent clicks measures have been working quite effectively. We are, however, continuing to invest aggressively in safeguarding measures which will help ensure that our customers and users continue to have the best possible experience using Baidu.”

Source: Business Week

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David Temple

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