Moving Forward by Stepping Back

In April of 2005 I sat at my usual corner table at Krispy Kreme donuts in San Antonio.  It had become my “thinking place” and every few weeks I would ponder life over a couple of donuts and a cup of coffee. I was reading a series of articles on the growing problem of “click fraud”.  Our former parent company, Optimal iQ, had recently found a group of fake clicks and we were intrigued by the problem.  Perhaps it was the highly caffeinated sugar rush but at that moment, I had an epiphany.  I realized the problem of click fraud was only going to get worse and more complex.  Measure this challenge against the rapid growth of search marketing and there was an opportunity staring me in the face.

Click Forensics was born in January of 2006 through the hard work of my co-founders and our dedicated team. We raised over $15,000,000 to solve a problem, execute a plan and lead the industry.  Today Click Forensics is the clear leader in traffic quality management. Our original vision was to “help ensure advertisers get what they pay for” and today that is exactly what we do.  I’m very proud of Click Forensics and excited about the opportunity to continue to serve and improve the online advertising community.

In June of last year I made the decision to begin my exit from the company.  Click Forensics is growing rapidly and developing cutting edge technology our competitors can’t touch.  My role has deliberately been changing over the last year and I feel I owed it to myself and my family to explore “what’s next” for me.  So last week, I formally stepped back to a board of director position.  I will continue to help the company in any way I can and remain an active advisor, board member and chairman of the Click Quality Council.

As I reflect on the last four years or so of our growth, there are eight things that come to mind that I am most proud of:

1. We raised awareness about click fraud – Sure we may have ruffled a few feathers when we launched our Click Fraud Index ™ in the spring of 2006, but those numbers caused everyone to stand up and listen.  Google called us out in August of that year and dismissed the problem of click fraud as insignificant, claiming their own efforts to stop it were "reasonable".  The problem was hugely significant and no standards existed to stop it.  Something had to be done so we took the lead.  With the support of the advertising community, we “encouraged” Google to take the problem seriously and listen.


2. We brought “both sides to the table – No one wanted to talk about the problem of click fraud in 2006.  We recognized that solving this problem was in the interest of everyone in the advertising ecosystem.  We worked hard to listen to advertisers and work with search engines to develop sustaining solutions that are communally beneficial.


3. We built a bridge – In a groundbreaking partnership with Yahoo!, we built the FACTr™ system (Fully Automated Click Tracking and Reconciliation).  FACTr allows advertisers to communicate directly to the ad providers via Click Forensics.  Yahoo! led the way and by the fall of 2007, Looksmart, Google and others followed suit.


4. We saved advertisers money – Our tools and insight are effective in identifying unwanted traffic and allow an advertiser to work with the ad provider to get what they pay for.  Hundreds of customers have used our technology to find click fraud and improve their campaign ROI.


5. We led the charge for standards – Working closely with the Interactive Advertising Bureau (IAB) and dozens of online advertising companies we developed standards that were released in June of last year.  It was a team effort from Google, Microsoft, Yahoo!, Click Forensics and many others.  The result is a document that can be built upon for years to come.


6. We worked with some of the best – Our customer list includes industry-leading advertisers like Vegas.com, Progressive Insurance, Experian and EBay.  On the ad network side our clients include leaders like Adknowledge, Turn, Yahoo! and Lycos.  The relationships I have made through customers, partner companies and industry leaders means a lot to me (even Shuman!).  The online advertising industry is vibrant and growing.  Some of the brightest people I have ever been associated make this industry great.


7. We caught click fraud – We have an incredible team of scientists, engineers and developers. Many of them have PhD’s and tremendous industry experience.  We have put their knowledge to work by innovating ahead of the fast moving bad guys.  One example of this is our identification of the “Bahama Botnet”, an organized group of fraudsters using a highly sophisticated approach.  Our discovery of this (subsequently alerting Microsoft, Yahoo! and Google) saved advertisers from paying for these clicks.  Additionally, it forced the bad guys to change their approach.


8. We changed online advertising… for good – The work that we have done and continue to do is meant to have a sustaining effect on online advertising.  Improving traffic quality in real time means that publishers and ad networks can send out highly qualified clicks to advertisers and enhance trust.  This relationship, built on standards and delivered on quality, will accelerate the growth of online advertising for years to come.  We are proud to play an important part in the ecosystem.

I have enjoyed the opportunity afforded me to play a role in our company and the industry.  I'm deeply appreciative of the support, encouragement and hard work from our employees, partners and board of directors.  It's been an amazing five year ride!

And so now I look ahead.  Currently, I’m enjoying an “entrepreneurial sabbatical” to consider options and explore opportunities over the next few months.  I’m enjoying time with friends and family, traveling and learning about new businesses.  I’m keeping busy by consulting with an advertising technology company, joined the advisory board of an NBA agent firm and of course reading, writing and learning.  At some point, I’ll head back to Krispy Kreme.  There are an unlimited supply of donuts, coffee and problems to solve.  I can’t wait~

Tom Cuthbert

Click Fraud Gets Slicker

Andy Greensberg of Forbes has written about the problem of click fraud for years.  In fact it was Forbes who published a "debate" between Shuman Ghosemajumder of Google and me that helped set the record straight about discrepancies.  While the problem of click fraud has been widely covered by media outlets ranging from the Wall St. Journal to Search Engine Watch, Forbes (and Greenberg) have always been on the leading edge.

This is still the case today as Andy wrote and excellent piece on the problem titled, "Google Faces The Slickest Click Fraud Yet."  The article focuses on the work of Harvard professor Ben Edelman.  Ben's site (www.benedelman.org) is an impressive compilation of research and reports on a wide range of topics with a focus on spyware, click fraud and online advertising.

The article highlights "a new form of click fraud that accomplishes what online fraud watchdogs might have once thought impossible: a scam that not only simulates valid clicks on a Google ad sold to an advertiser, but seems to result in a real customer who spends money on the advertiser's site."  This is the worst case scenario for an advertiser and Edelman is right on in his method of identifying the threat.  While this approach is limited in it's ability to scale, it is the most significant finding since Click Forensics identified the "Bahama Botnet".

I applaud the work of Ben Edelman and others as well as Andy and the folks at Forbes for continuing to shine the light on this ongoing problem for our industry.  For over four years now, we have been on a mission to "ensure advertisers get what they pay for".  As long as Google lacks transparency, there will be click fraud.  Ben ends by saying, "Google owes its advertisers something better than that."  I agree and we need more guys like Ben to help hold their feet to the fire.

Tom Cuthbert

Sixteen Consistent Characteristics of Greatness

I read a blog post yesterday that really caught my attention.  It highlighted a list created by Don Yaeger, former editor of Sports Illustrated.  Don has put together a list of "Sixteen Consistent Characteristics of Greatness".  While we all aspire to be great, Don has hit on traits that separate the great from everyone else.

I read this list and thought of people I admire.  It is the best list of attributes of successful entrepreneurs, athletes and business executives I have ever read.  I thought I would share the complete list with you here... it is well worth the read.  Maybe you see some of these traits in yourself or someone in your life...

Sixteen Consistent Characteristics of Greatness

How they think:

1. It’s personal
They hate to lose more than they love to win. People that aspire to greatness know that defeat just isn’t an option.

2. Rubbing elbows
They understand the value of association. I always say that we become the people that surround us. Those of us who are aspiring to greatness, it is our job to rub elbows with the right people and to learn what makes them successful and what keeps them going. In turn, it is up to them to help us better ourselves. And if you can’t change the people around you, then choose different people to be around. Think about it.

3. Believe
They have faith in a higher power. It is proven that a strong spiritual commitment, and a strong belief in faith is linked to a positive outcome. In our current economic state, always remember the power of a positive mind-set and the importance of belief in beating the impossible.

4. Contagious enthusiasm
They are positive thinkers… They are enthusiastic… and that enthusiasm rubs off. When you’re trying to work through your challenge-professional or personal – do so with the belief that the best is yet to come. Stay positive.

How they prepare:

5. Hope for the best but…
They prepare for all possibilities before they step on the field. I am an eternal optimist. But I am also a realist. When I enter into any situation, I am excited about the possibilities it may bring. But I also know that there are a lot of variables beyond my control. So I contingency-plan.

6. What off-season?
They are always working towards the next game… The goal is what’s ahead, and there’s always something ahead. if you visualize where you want to be and work backwards from there, you can always be moving the ball forward.

7. Visualize victory
They see victory before the game begins. Positive visualization is a proven ingredient of a successful outcome.

8. Inner fire
They use adversity as fuel.One thing in life is certain… none of us gets through without adversity. What matters is that we find the strength to work through it. When we are knocked down, it may take hours, days, weeks, or months, but we need to get back up. For me, I’m at the point where challenging situations invigorate me. I’m mentally tough enough to embrace the adversity heading my way, overcome it, and learn from it.

How they work:

9. Ice in their veins
They are risk-takers and don’t fear making a mistake. Failure is one of our greatest teachers. I’m amazed at how much risk-tolerance I have acquired. But it’s the one component that enables me to keep growing. If I stopped to think about how much I have on the line, I would be paralyzed.

“I’ve missed more than 9,000 shots in my career,” NBA legend Michael Jordan, who was known for his late-game heroics in addition to six national titles, once said. “I’ve lost almost 300 games – 26 times, I’ve been trusted to take the game winning shot and missed. I’ve failed over and over and over again in my life, and that is why I succeed.”

10. When all else fails
They know how – and when – to adjust their game plan. Flexibility and adaptability is essential to survival. I wrote a previous column on this exact topic… the ability to shift when everything around you is shifting too.

11. Ultimate teammate
They will assume whatever role is necessary for the team to win. Individual accomplishments are important, but the sum is always greater in value than the individual parts. How much do you step up to help those around you? When others around you thrive, you thrive as well.

12. Not just about the Benjamins
They don’t play just for the money. It’s never about the money. And if it is, it’s about the wrong thing. The money will come if you follow your passion… if you become a part of something bigger than yourself. As a business owner, I view our profits as a catalyst to build a greater organization.

How they live:

13. Do unto others
They know character is defined by how they treat those who cannot help them. One of the greatest sources of satisfaction is helping others, from a truly altruistic standpoint. We all have something to give… our time, our experiences, our compassion.

14. When no one is watching
They are comfortable in the mirror… they live their life with integrity. I always tell my kids… “What matters is not what you do when everyone is watching. What matters is what you do when no one is watching.” Your ultimate accountability has to be to yourself.

15. When everyone is watching
They embrace the idea of being a role model. As leaders, we have an obligation to promote positive leadership, and demonstrate the positive influence we can have on others. Our actions shape those coming behind us.

16. Records are made to be broken
They know their legacy isn’t what they did on the field. They are well-rounded. A legacy isn’t what you took from this world. A legacy is what you leave behind.

Now go out and accomplish something!

Tom Cuthbert

"The World is a Complicated Place, Hobbes"

I really miss Calvin and Hobbes.  For years I enjoyed reading them to my son and laughing together.  Today the cartoonist, Bill Watterson is retired and my son is reading Fantasy Football stats!

Calvin represented the boy in all of us.  He was inquisitive, fearless (to a point) and adventurous.  I enjoyed his imagination and certainly saw some of me in Calvin, and Calvin in my son.

Hobbes is the quintessential calming influence.  The imaginary tiger was both a friend and counselor.  Together they made a great team and got into (and out of) more trouble than I ever did!

The comic below is one of my favorites.  Often times, Calvin and Hobbes dealt with 'big picture' issues in a simple way.  Live life for a few years and you realize the world is a complicated place.  There are definitely days when I would have loved to take Hobbes advice and just "take a nap in a tree and wait for dinner."



I hope this holiday season your world can be uncomplicated.  Enjoy the little things and appreciate the blessings of life.  While the world may not be as simple as black and white, it is an awesome place when filled with the color of life.

My favorite quote is by Ronald Reagan, "Enjoy life, it's ungrateful not to." Indeed.

Tom Cuthbert

The LeBron Switch is Not About the Number

LeBron James is arguably the best player under 30 in the NBA, I don't think there is much debate.  So when he announced recently that "out of respect for Michael Jordan" he was going to wear the number 6 next year, there were a few eyebrows raised. There are currently 11 other players in the NBA who sport MJ's digits.  (Most notably Marcus Camby and Kevin Martin, least notably Stephen Graham and Jodie Meeks).  So why is LeBron so concerned about the number?  I think it's because he is already thinking of a change of scenery next year and a little spiffing up for the ole brand.

Sure there are huge marketing benefits for changing numbers. You may recall Kobe going from 8 to 24 a few years ago.  That switch pushed him past LeBron in jersey sales.  But in this case, I don't think LeBron is worried about selling gear in the near future.  And with all due respect to both messieurs James and Jordan, it's not about honoring MJ.  If it were, LeBron would realize that Bill Russell, a #6, (11 championships to Jordan's 6) should be honored as well.

I like LeBron and think he is great for the NBA.  But let's get real, changing numbers is not about honoring anyone. It's about positioning for next year and marketing.  LeBron is a brand, and every once and awhile, brands need to be freshened up.  So let's not hide the fact that LeBron is a savvy marketer as well as an amazing athlete.

One other note... I have decided to change my name in honor of Tom Landry (or maybe Tom Cruise, or Tom's Shoes, or TomTom GPS...).  I'm taking nominations for a new name to begin wearing next year.  It needs to meet two critical criteria... first honor someone famous (but not too famous) and secondly, look good on a jersey :)

FKA Tom Cuthbert

Blogging About Blogs

This week, I'll be attending Blogworld in Las Vegas for the first time.  I'm looking forward to the show and interested in learning about the world of blogging and social media in general.  The conference features thought leaders, bloggers and participants from an industry that is still in it's infancy.  For years I have been fascinated with the blogging phenomenon.  Blogs have connected people, spread ideas and information, created 'micro-celebrities' and contributed to the downfall of the newspaper industry.

The term 'blog' is a contraction of 'weblog', first coined by Jorn Barger in 1997 then turned into just 'blog' in 1999.  Today blogs are part of everyday life and a fairly large industry in and of itself.  This week at Blogworld, I plan to learn about that industry and am specifically interested in the sports aspect of blogging.  If you are in this area and will be at Blogworld, I'd love to connect!

I have been blogging now for almost two years on everything from Google to Rascal Flatts.  Much of my focus has been on click fraud and online advertising.  I'm not interested in making money off my personal blog, only sharing ideas, connecting with interesting people and ranting about random topics.  However, blogs have definitely been a vehicle for Click Forensics to share information and reach new customers.

Finding a blog that interests you is easy.  Sites like Technorati allow you to search by topic and find your interests.  (For example my love of the NBA returns these results)  There are several blogs I read everyday including the Wall St. Journal, Bleacher Report, Silicon Alley Insider and ChrisBrogan.com.

Nowadays, setting up a blog could not be easier.  Sites like Wordpress, LiveJournal, Blogger.com and Typepad.  The WSJ Blog recently had a post called "To Blog or Not?".  If you have something to say I encourage you to blog!  It can be therapeutic, entertaining, engaging and even profitable.  Jump in, speak out and blog away...

Tom Cuthbert

Beware the “Bahama” Botnet

By Steve O'Brien, Click Forensics

Just when you thought the fraudsters couldn’t get any more sophisticated … they surprise you.  Click Forensics researchers have recently discovered one of the most advanced sources of click fraud we’ve seen.  We’ve named it the “Bahama botnet” because when first discovered it was redirecting traffic through 200,000 parked domain sites located in the Bahamas.  It has since been reprogrammed to redirect through other intermediate sites hosted in Amsterdam, the U.K., and even San Jose, CA, but the Bahama name stuck.

Interestingly, the Bahama botnet appears to be closely related to the recent spate of “scareware” attacks, such as the one perpetrated against The New York Times digital site just a few days ago, reported by ComputerWorld.  Visitors to the NYTimes.com site were greeted with a pop-up informing them their computer was infected and directed to an authentic-looking site where they could install a program called Personal Antivirus.  Users duped into purchasing this phony software were then infected with a Trojan that gave control of their computer to an unknown third party that we now know to be part of a gang in the Ukraine.

We believe the Bahama botnet is controlled by this same gang, or their neighbors down the street.  More info about the “Ukranian fan club” can be found in Dancho Danchev’s excellent security blog.  We’re pretty sure the Bahama botnet is related to the Ukranian fan club and the NYTimes.com scareware because they each phone back to a bogus “Windows protection” domain located on the same IP address.

These sources were originally identified by the Black Hat community, but we believe Click Forensics is the first to discover the breadth and depth of click fraud being perpetrated by the botnets it controls.  And the botnet is incredibly insidious.

The video below shows the botnet in action, caught on film and narrated by Click Forensic’s own Matt Graham, the infected machine will exhibit some really funky behavior.  Clicks on organic search results are redirected through a series of parked domains across a number of top-tier ad providers (search engines and ad networks), eventually arriving at an advertiser unrelated to the original query.  The user is momentarily confused, but likely just performs the search again, this time with easy success.



What makes the botnet so insidious is that it operates intermittently so that the user doesn’t really know that anything is wrong.  Additionally, it can operate independently of the user because the authors appear to be building a large database of authentically user-generated search queries.

[caption id="attachment_718" align="alignright" width="500" caption="Seemingly random clicks discovered through advanced pattern detection"][/caption]

And because the queries come from many different machines (IPs) across a broad segment of the Internet population, it is very difficult to find and identify these clicks as fraudulent.  But these auto-generated clicks were not able to disguise themselves well enough to escape Click Forensics anomaly detection algorithms.  Additionally, large amounts of non-converting clicks were spotted in the data we receive from advertisers.  From there, our team was able to hone in on the source of the Bahama botnet.