The Interactive Advertising Bureau (IAB) has launched a new industry-wide initiative to define and measure click fraud with a view to eradicating the problem, which some have said is undermining internet search marketing.

The Click Measurement Working Group's main aim will be to create a set of Click Measurement Guidelines, which will include a definition of what constitutes a click and set a standard to measure and count clicks and identify invalid clicks, according to the IAB

On board already are big name search vendors such as Yahoo, Google, Microsoft and Ask.com, and industry body the Media Rating Council (MRC).

Click fraud takes various forms but is fundamentally when a person, or automated computer program, clicks on adverts to make them appear more popular than they are. With pay-per-click (PPC) advertising, the publisher or web site owner agrees to display adverts in exchange for a fee-per-click from the advertiser.

Click fraud may be carried out by web sites to boost income from such ads, or by advertisers keen to exhaust their competitors' revenues so they can then move in to take over certain keywords on sites.

"Standards and best practice are key for the industry," said IAB Europe's chief executive Danny Meadows-Klue. "Online marketing may be the fastest growing marketing channel in history, but as an industry body the IABs worldwide are keen to ensure that trading rests on a secure foundation."

Some have criticised providers of advertising networks such as Google's AdWords and Yahoo Search Marketing of not doing enough to prevent this practice, as they indirectly benefit from click fraud.

Shuman Ghosemajumder, Google's business product manager for trust and safety said, "We've been working to improve transparency about invalid clicks for our advertisers, and we're pleased to join an industry-wide effort with the same goal."

A Microsoft spokesperson also said its AdCenter network "has developed a variety of proprietary technologies to help protect your advertising budget from invalid clicks".

Paul Vallez, director of search advertising products from Ask.com, also a member of the group, said the formation of standards should help to provide a level-playing field for all stakeholders.

"We want to be as transparent as possible and once the draft guidelines are finished we want to open it up to anyone who has a stake in the industry," he explained. "It's still one of the most accountable forms of advertising in the business but because it is in its infancy there are a lot of holes."

Graham Titterington of analyst Ovum said the issue threatens to undermine web sites publishing adverts, and advertising networks such as Google AdWords, which profits from pay per click charges.

"This initiative is very welcome and long overdue," said Titterington in a research note. "It is vital for the health of the internet site operators to clarify the situation and restore the advertisers' confidence. Tackling click f raud is a part of restoring confidence in the cyber world, along with eliminating malware and stopping phishing, but it is likely to be nearly as hard to achieve as these other objectives."