It's important to remain calm and rational when trying to assess if your ad campaigns are falling victim to click fraud. Not generating business through paid search is more frequently a result of bad management or poor campaign set up rather than a destructive competitor pressing your ads night after night. Specialists place the entire percentage of fraudulent clicks at approximately 10-15% of the overall online advertising market and these are concentrated around writer scam as opposed to competitor click fraud. So if you're a small company advertising mostly on the search network (and have opted out of the content community) then you're normally safe from publisher fraud.
You're most probably a casualty of competition click fraud if you're in a business that is competitive and you also find uncommon visitor activity in a normally profitable and well set up AdWords account. Activity such as unusually high surges in traffic for one or two unique adgroups that don't result in almost any conversions are telltale signs that you might be falling victim to click fraud. Find out for further details on What is click fraud right here.
Companies that are your competitors may click your online advertisements fraudulently to deplete your budget, so you no longer come up in the search results. The competitor has more possibility of gaining credible visitors due to this and when conducted over a lengthy period it can be utilized to price you out of utilizing paid search as a traffic source entirely, particularly if it goes undetected. Excessive competition click fraud is normally detected and prevented by Google as well as other chief advertisements platforms plus they do have systems in place to help your advert from being clicked on over and over. Nevertheless in case a competitor is bent on clicking your advert repeatedly, every day and you have a limited advertising budget it can have a huge impact on the conversion campaigns and lead to significant losses in business revenue.
When detecting click fraud you're looking for unusual traffic as described below. Uncommon spikes in traffic - an inexplicable increase in traffic uncharacteristic of your market and not in line with natural traffic trends. Too many clicks from the same IP address might be a competitor clicking your ads. A lot of clicks from a nation you don't do business with potentially "click farms" in third world countries could be clicking your advertisements. A substantial decline in conversions, especially around the ad groups gaining increased traffic. Sudden decreases in some time used on a site can be due to click fraud.
The best way to detect when you have become a victim of competitor click fraud is through host logs. Take a look at this link https://en.wikipedia.org/wiki/Click_fraud for more information.