Interesting article on Google Ad Sense....

Google Needs Some Ad Sense
By Robert X. Cringely

After 29 years of working in high-tech companies and writing about them, I have noticed how insular they tend to be, often not seeing either the world or themselves at all clearly. Whether intended or not, this cultural artifact comes to control how the world in turn sees them, which rarely works in their favor. The classic example is Microsoft, where hiring smart people fresh from school and working them 60 hours or more per week -- in an environment where they don't even leave the building to eat -- leads to a state of corporate delusion, where lying and cheating suddenly begin to make sense. But it isn't just Microsoft that does this. It is ANY high tech company that hires young people, isolates them through long hours at work, feeds them at work, and effectively determines their friends, who are their co-workers. This trend even extends to the anti-Microsoft, to Google, where the light of day is sorely needed.

Google is secretive. This started as a deliberate marketing mystique, but endures today more as a really annoying company habit. Google folks don't understand why the rest of us have a problem with this, but then Google folks aren't like you and me. The result of this secrecy and Google's "almighty algorithm" mentality is that the company makes changes -- and mistakes -- without informing its customers or even doing all that much to correct the problems. It's all just beta code, after all. But the business part is real, as is the money that some people have lost because of Google's poor communication skills combined, frankly, with poor follow-through.

First there is click fraud. Google makes its money when people click on Google ads, but some of those clicks are fraudulent -- are not honestly intended to gain information or to buy products. Click fraud generally comes in two varieties that I'll call "buy" and "sell." An example of buy-side click fraud would be my little sister religiously clicking on every Google ad on this page (What? We have no Google ads?) in the mistaken belief that doing so would make me some money. It is mass clicking by a single person without an intention to actually buy or even to gain information. Sell-side click fraud would be one advertiser clicking on the ads of a competitor with the intention of costing that competitor money without increasing their sales. Both types of click fraud ought to be detectable, and in fact, Google says it already detects the 10 percent or so of clicks that are fraudulent (Business 2.0 magazine says it is more like 30 percent), and adjusts the bill before the advertiser even knows what is happening.

But not all click fraud is detected automatically. It is one thing to notice the same IP address being used to click 30 ads in three seconds (that is obviously fraud), but quite another if the clicks are spread out or come from what appear to be a variety of users. There, too, Google pledges to make things right, though it may take some time -- too much time, I think.

more...

http://www.pbs.org/cringely/pulpit/pulpit20060525.html