Click fraud is a subset of a larger category known as ad fraud, which encompasses various deceptive practices aimed at manipulating online advertising. Ad fraud includes activities like click fraud, conversion fraud, and ad injection, all of which aim to generate illegitimate revenue or deplete advertising budgets. Understanding click fraud within the context of ad fraud helps in recognizing the diverse ways in which digital advertising can be exploited.

Several techniques are employed to execute click fraud, with bot traffic and click farms being the most common. Bot traffic involves the use of automated programs to generate fake clicks on ads, while click farms are groups of individuals paid to manually click on ads. Cookie stuffing is another related tactic where multiple cookies are placed on a user's browser without their knowledge, leading to fraudulent clicks and conversions.

Invalid Traffic (IVT) refers to any clicks or impressions that do not come from genuine users. Click fraud significantly contributes to IVT, affecting the accuracy of key performance metrics like Click-Through Rate (CTR). A high CTR resulting from fraudulent clicks can mislead advertisers into believing their campaigns are performing well, when in reality, they are losing money to fraud.

More sophisticated forms of ad fraud related to click fraud include domain spoofing, ad stacking, and pixel stuffing. Domain spoofing tricks advertisers into believing their ads are being displayed on legitimate websites, while ad stacking involves placing multiple ads on top of each other, registering multiple clicks for a single user action. Pixel stuffing hides ads within a single pixel, making them invisible but still generating fraudulent clicks.

To combat click fraud, advertisers and ad platforms employ various detection and prevention strategies. These include using advanced analytics to identify unusual click patterns, employing IP blocking to prevent known sources of fraudulent activity, and implementing CAPTCHA tests to distinguish between human and automated clicks. By understanding the various aspects of click fraud and related jargons, stakeholders can better protect their advertising investments.