Click Fraud Testing
Danny pointed at MarketingExperiment's recent piece on click fraud (free registration required).
They tried click fraud on test campaigns, clicking 10 times on each. Below is the number of clicks Google charged for from each test set:
Individual clicking on the ad: 0
Individual clicking on the ad with Anonymizer: 1
Clicking on the ad with a different computer, same IP address: 1
Clicking on the ad with a different computer, different IP address: 1
They mentioned impression fraud and looked at alleged click faud in three real accounts, which showed that fraud tended to increase as click cost rose.
They also gave tips on how to avoid click fraud or minimize its effects. The article is worth a peak if you plan on swimming in the PPC market. They also have a 50 minute audio I have only listened to a few minutes of.
I am not sure why they did not test other engines as well. They should have at least done Overture. It would be interesting to compare how various engines fight (or do not fight) click fraud.
Whoever is big in the click fraud prevention market should really use some a / b / c comparison testing as the cheap marketing opportunity that it is.
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