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Click Forensics Traffic Quality Management. Tom Cuthbert, President & Founder Tom Charvet, Vice President & Founder IEEE March 19, 2009. Agenda. About Company Background The Problem of Click Fraud Our Approach Technical Overview. Tom Cuthbert.

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Click Forensics Traffic Quality Management

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    1. Click Forensics Traffic Quality Management Tom Cuthbert, President & Founder Tom Charvet, Vice President & Founder IEEE March 19, 2009

    2. Agenda • About • Company Background • The Problem of Click Fraud • Our Approach • Technical Overview

    3. Tom Cuthbert • EDUCATION:
· Attended M.I.T. 
· BSEE with Highest Honors, Georgia Tech
· MSEE, Southern Methodist University
· Ph.D. in Electrical Engineering, S.M.U. • PUBLICATIONS:
· Circuit Design Using Personal Computers
· Optimization Using Personal Computers Applications for Electrical Networks
· Broadband Direct-Coupled and Matching RF Networks
· Four articles, RF Design, 1994, 1997, 2000
· One article, IEEE Trans. Microwave Thy. Tech. Newsletter
· One article, Applied Microwave and Wireless· Paper and presentation, IEEE International Symposium on Circuits and Systems • EXPERTISE
· Design &Synthesis of Electrical Filters &Impedance-Matching RF Networks
· Amplifier Design by Geometric Model and Mapping
· Electronic Circuits in Frequency Ranges from VLF through K Bands
· Optimization (Nonlinear Programming)
· Numerical Methods and Analysis • JOINED IEEE IN 1958, LIFE MEMBER

    4. About the “Tom’s” • Tom Charvet • Tom Cuthbert • The company • How we got here…

    5. It’s Google’s World…

    6. Click Fraud is like spam… • Spam was up 25% in 2008 • When McColo went offline in November, the rate dropped 70%, it’s up 156% since • An unprotected user would have received 45,000 spam emails in 2008 • Virus volume increased 6X in 2nd half ’08 • Spammers have reinvested and are constantly evolving their efforts

    7. …and spam is getting worse

    8. How Click Fraud Works • Methods • Individual • Click farms • Bot and botnet • Motivations • Competitive • Malicious • Financial

    9. Types of Traffic Quality High Valid Traffic Likelihood of Conversion Low Other Invalid Traffic Click Fraud Invalid Traffic

    10. Invalid Click Detection Valid Traffic Invalid Traffic

    11. Q4 2008 Quarterly Stats Click Fraud Index™

    12. Overall Click Fraud Rate by Quarter

    13. Content Network Click Fraud Rate %

    14. Botnet Click Fraud Rate by Quarter

    15. How We Do What We Do

    16. Who We Help • Buy Side - Advertisers • Sell Side – Search Engines, Publishers, and Ad Networks

    17. The Buy Side

    18. Invalid Traffic Is MoreThan Just Click Fraud Types of Low Traffic Quality Reason • Low conversion rates • CPA too high • Broad match conflict Low Quality • Outside target service area • Competitor Clicks • Unacceptable type of site • (MFA, Adult, etc.) Invalid Traffic • Malicious intent • Click Farms • Bots/Botnets Click Fraud CONFIDENTIAL 18

    19. Five Major Threats To ROAS In CPC Campaigns • Like spam, bots and botnets are becoming more sophisticated and difficult to catch • Over 70% of all sites in Google Adsense and the Yahoo Publisher Network are made for ad sites or parked domains • Over 22% of all invalid activity comes from outside the targeted geo area of advertisers • Competitor clicks deplete ad spend • Brand infringement violations use established brands to send customers to competitor’s sites

    20. Competitors Click On Ads CONFIDENTIAL 20

    21. Clicks Are Coming From China… CONFIDENTIAL 21

    22. Your brand is sending traffic to your competitors CONFIDENTIAL 22

    23. Fully Automated Click Tracking Reconciliation FACTr™ • FACTr completely automates the submission process of invalid campaign activity evidence • The evidence report is a verifiable third-party audit containing a click-for-click breakdown of invalid activity • Google, Yahoo, Looksmart and Miva are partners in this program with more to be announced soon CONFIDENTIAL 23

    24. Case Study:Click Forensics 6-Month ROI FACTr • 45% reduction in invalid clicks • Over $200k monthly savings • Eliminated very expensive, low-quality clicks • FACTr process produced credits for exceptions (>$100k/mo) • 7% increase in conversion rates

    25. The Sell Side

    26. Traffic Segmentation Best 1000 • Route Traffic Most Effectively • Maximize Earnings Potential Marginal Click Fraud • Traffic to Discard 0

    27. Reading the Scoreboard • ClickScore - A three digit score that indicates whether a click is valid or invalid and serves as a predictor of conversion . • VisitorScore - A three digit score produced by each individual visitor. Represents the quality of visitor. • SiteScore™ - A three digit score that represents the traffic quality of an individual publisher or network.  Click Forensics 2008

    28. Primary goal is to supply high quality traffic to advertisers from publishers to maximize revenue Ad Network  Click Forensics 2008

    29. Click Forensics measures the quality of traffic from publishers and report the results Ad Network  Click Forensics 2008

    30. Click Forensics augments existing blocking mechanisms that eliminates the poor quality visitors from viewing ads Ad Network  Click Forensics 2008

    31. The result is higher quality impressions and more valuable clicks delivered upstream Premium Standard Discard Ad Network  Click Forensics 2008

    32. Reporting Tools • View the SiteScores™ of the publishers in your network • Monitor the VisitorScores™ of your worst offenders • Gain insight into the geographic areas delivering high and low quality traffic • Analyze trends within your traffic • Export data into other applications for added analysis • Setup near real time email alerts to monitor spikes in unwanted traffic • Drill down for publisher and advertiser dispute resolution  Click Forensics 2008

    33. Data Flow Diagram Raw click data – transmitted via scp, sftp, or ftps. This can be scheduled near real time. Each click is rated and assigned a ClickScore™ Each visitor is rated and assigned a VisitorScore™ Each publisher is rated and assigned a SiteScore™ Ad Network • The Click Forensics API returns: • Valid and Invalid Clicks and their ClickScores™ • High threat visitors and their VisitorScores™ • Publisher quality index and their SiteScores™ • Known Offender Lists  Click Forensics 2008

    34. Putting It All To Work • Blocking - Invalid traffic can be blocked before it ever reaches an advertiser • Routing - Ad networks can route traffic appropriately to maximize earnings • Intelligent Pricing – Traffic segmentation allows for quality-based pricing models • Publisher/Advertiser Review - Ad Assurance automates the process for detecting malware in ad creative and sites. • Reconciliation - Evidence of invalid traffic is recorded so that ad networks can reconcile payment with both publishers and advertisers

    35. Thanks!Q & A