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gregbo - 5:31 am on May 23, 2006 (gmt 0)
Google should automatically rebate me for any non US IP traffic because that is traffic coming from non-legitimate clicks. What are you using to block non-US IPs? Geotargeting is not guaranteed to be reliable. Fraudsters have ways of making the fraud come from any IP (in theory) by compromising the computer and manufacturing clicks. In practice, there are people who religiously protect their systems from being compromised, but because IPs can be reassigned, there is no guarantee that an IP (or IP block) is immune to compromise. My opinion (as usual) is that the business model is wrong. Charging per click, or impression, or some other "actionable" event was just ripe for these types of problems.
One of the major concerns I have is that I am choosing to block non US with my ad campaigns but still get non-US IP addresses on my server logs from my PPC ads. Pareto applies here and once the sources of click fraud are truly exposed we will see that 80% of the fraud is coming from 20% of the IPs.