The Anatomy of a Web Advertising Scam

The Anatomy of a Web Advertising Scam

Investigating the people behind those sketchy flat-stomach ads.

Posted Thursday, April 2, 2009 - 5:31pm

Once they’re in the networks, they’re served across the Internet. The search engines will serve the ads on keywords that the affiliates have purchased. The social media sites will serve them based on the demographic data in your profile. And the third-party ad networks will pump them into websites that use their service. This last scenario is why you see the ads pop up on sites like Slate, The Big Money, and other news publications. Most sites use ad networks when they run out of ad inventory they’ve sold themselves. So when advertising is light—as it is in the recession—these ad networks are relied on more heavily. Thus the increase of the scam ads in recent months.

From there, of course, people click on the ads to the landing pages to the vendor pages. Then, when somebody buys the vendor’s product, the money flows through the system, allowing more ads to be bought and more commissions to be paid out.

In a way, it’s a beautiful system. Everybody is intertwined, and everybody relies on one another. Its interactions almost seem ecological, as though they’re a food chain contributing to a broader ecosystem. Just don’t call it the circle of life—it’s more like a circle of lies.

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This piece owes a large bit of thanks to Nickycakes.com, which has a vulgar but indispensible guide to affiliate advertising. Also, the Waffles at Noon blog is ace at keeping track of all the various scams and landing pages. E-mail me if you’ve seen this kind of multilevel marketing scam for other products than those mentioned.

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I thought those links were just to inform the readers about a thing. I did'nt know that they would be asking a penny for the product they are offering. Facebook has become the new MySpace. Ironic, since a few years ago, MySpace was touted as becoming the new Facebook. More people are joining the social networking site, and it's also a great place to advertise for a business – it's free advertising space, and social networks have become a marketing hotbed over the last few years. There are precious few opportunities for a business to have access to so many potential customers, which can be a great way to build customer rapport, as long as you aren't spamming anyone – customers hate that. And since the website is free to sign up for, a business can start advertising on Facebook without needing payday loans to start an ad campaign.

Facebook has been barraged

Facebook has been barraged with these internet scam ads for months now. The FTC is on a mission to kill this stuff

Comment On The Internet Scam Industry

Thanks for the good story. Well researched and well written. Would enjoy reading more stories on how authorities have tried to prosecute, what legislators can do, etc. Good luck.

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