Blacklist the IP Blacklist: Experts at Anchor Intelligence Say Lists Are Not a Solution for Click Fraud

Behavioral and Reputational Data Required to Reduce Click Fraud Rates Associated With Search and Display Campaigns

MOUNTAIN VIEW, CA–(EMWNews – August 19, 2008) – According to research conducted by click

fraud experts at Anchor Intelligence, Internet Protocol (IP) address

blacklisting is not an effective long-term solution for eliminating click

fraud. A comprehensive click fraud solution must leverage the behavioral

and reputational characteristics of traffic in real-time.

“Despite use by some ISPs and the general industry, blacklists are a 1980s

approach to a modern-day problem,” said Ken Miller, CEO of Anchor

Intelligence. “The online advertising industry has already witnessed

firsthand the deficiency of IP blacklisting, as it is highly ineffective

for catching other types of malicious activity on the Internet, including

payment fraud and spam. It’s time to evolve our approach to click fraud if

we really want to solve the problem.”

In July 2008, Anchor Intelligence conducted a study of IP transience over a

three-week period. Analysis showed that more than a quarter of all users

were tied to two or more distinct IP addresses, or were from a single IP

address that was tied to multiple users. Using an IP address as an

identifier for a fraud perpetrator is a broad stroke effort to a very

complicated problem.

Another issue that reduces blacklist effectiveness is that IP addresses can

be compromised by malicious programs such as botnets, which are used to

commit fraud or conduct other illicit activities on the Web. Because the

users of these IP addresses may have no idea their machines have been

compromised, and may also be engaging in completely legitimate activity

online, blacklisting them can result in missed opportunities to drive

profitable traffic and clicks from search marketing efforts.

“In the case with email, IP blacklists have been used to block unwanted

emails from being sent to users and have provided some level of protection

in the short-term,” said Walter Harp, Director, Windows Live Product

Management for Microsoft. “However, blacklisting IPs is not a singular

solution — ISPs need to take a more comprehensive and nuanced approach to

fighting junk mail while ensuring that legitimate email gets delivered to

the inbox.”

Anchor Intelligence Moves beyond Blacklists

IP-based reputation and other IP-related intelligence is only one component

of Anchor Intelligence’s comprehensive anti-click fraud solution,

ClearMark. ClearMark scores each click in real time based on behavioral

characteristics for a given user as well as fraud signatures that match

with other known malicious activity identified across the Anchor

Intelligence network. These methods enable Anchor to link bad actors

across the globe and keep up with the ever-changing nature of click fraud.

“Between IP blacklisting and doing nothing to combat click fraud,

blacklisting will provide some value,” added Miller. “However, a solution

that leverages behavioral and reputational characteristics of traffic in a

timely manner will do a much better job in identifying non-billable clicks,

reducing the number of clicks that are incorrectly classified as

non-billable, and, in turn, bringing a higher level of accountability to

search engine marketing.”

To learn more about this extensive study and the impact of click fraud on

the online advertising ecosystem, please contact Carla Vicens, blast! PR to

arrange an interview with Anchor Intelligence experts. Or, visit the

company at booth #630 at Search Engine Strategies in San Jose on August

19-20, 2008.

About Anchor Intelligence:

Anchor Intelligence Inc., headquartered in Mountain View, CA, is a leading

online advertising traffic quality and click fraud solutions provider.

Anchor Intelligence provides ad networks, advertisers, and agencies with

cutting edge solutions to reduce click and impression fraud, identify high

performing traffic, and ultimately optimize their business offering to

their customers’ needs. Anchor Intelligence is funded by JK&B Capital;

angel investors include Ron Conway of Baseline Ventures, Ram Shriram of

Sherpalo Ventures, and Rajeev Motwani, Stanford Professor.