Wow. Click Forensics and MediaPost are reporting that click fraud has reached 28% on content networks. Even if it’s half that, it’s still a giant number. This level of fraud puts a lot of pressure on making cost-per-click (CPC) advertising models work as they scale beyond search and into content placements. I suppose, the upside in the story is that 28% click-fraud really represents a artificial 28% depression in the CPCs that advertisers are willing to pay as the fraud is priced into the market. Either way it’s bad news as there is virtually no way to stop click-fraud in CPC models.

Luckily alternatives to CPC text ads are starting to emerge.

For example, the Matchpoint search model shields advertisers from the fraudulent clicks by it’s very nature. Consumers that use Matchpoint to get competitive offers and proposals from businesses first complete a category specific search form and then confirm their interest via e-mail before businesses are charged for the introduction.