Edelman: Pop-Ups Artificially Inflating Internet Traffic Stats

Photo of Douglas A. McIntyre
By Douglas A. McIntyre Published

From Internet Outsider

Internet-sleaze detective Ben Edelman has published a new study showing that "forced visits" triggered by unwanted pop-up ads may significantly increase reported traffic statistics at many sites.  Because traffic statistics are important for business and investment decisions, this artificial traffic may be helping some companies win business/investors at the expense of others.  To anyone who has ever had his or her screen littered with unwanted pop-up ads, the practice is obviously sleazy.  At public companies that report traffic statistics, it might even be construed as securities fraud.

A "forced visit" occurs when a pop-over or pop-under for a third-party site automatically launches when you are visiting an unrelated site.  As Edelman shows, such ads can eventually count as a "visit" to the advertiser’s site, even if your only interaction with the pop-up is to delete it.  Using screen shots, Edelman details how such ads produce traffic for even big companies like Orbitz (Away.com) and Bolt.com.  Edelman estimates that, at sites that use such tactics, "forced visits" could account for a third to a half of all traffic. 

This practice presumably does not affect traffic numbers at sites that don’t use pop-up ads, such as Yahoo and Google (so it doesn’t explain the ongoing discrepancy between site-reported traffic stats and Nielsen/Comscore traffic stats).  It probably does inflate such companies’ advertising revenue, though: Sites that buy pop-ups/traffic need somewhere to find future "visitors."

Given the recent regulatory focus on spyware and inflated newspaper subscription numbers, it is reasonable to assume that regulators will eventually focus on such "forced visits."  As Edelman suggests, in the wake of YouTube and other high-profile emerging-company acquisitions, Internet companies have an incentive to pump up traffic statistics.  The smart ones will carefully weigh this incentive with the threat of future fraud charges, hellish publicity, and fines. 

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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