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Inside China’s $50 Bn “Click Farm”: Here is what it is & how it works

China Click Farm

China has a growing click farm problem, fueling an industry that was worth an estimated $50 billion in advertising revenue as of 2017. These click farms are highly organized operations whose sole purpose is to manipulate the analytics of online content and social media.

The effects of these “popularity machines” are felt by consumers every day, influencing everything from the products we buy to the political ideas we support. Alarmingly, about one-third of all internet traffic generated globally is now attributed to click farms or BOTS.

What Exactly is a Click Farm?

A click farm is an organization that uses hundreds, if not thousands, of computers and phones programmed to deliver specific tasks for a customer, such as viewing an article, clicking an advertisement, or watching a video. Essentially, they are “popularity machines” designed to make something look artificially more popular than it actually is, aiming to change the public’s opinion.

Click Farm Set-up in China. (Image Credits: SCMP)

The customers funding this booming cottage industry are varied: they include shop owners seeking higher search page rankings, politicians wanting more followers, and singers and artists whose careers depend on high click numbers. The industry thrives because when clicks become a commodity, people are willing to pay for them. This involves increasing views on YouTube videos, leaving positive comments or reviews, and liking posts or accounts.

The Mechanics of the Click Economy

Click farms have evolved significantly, becoming increasingly efficient. In a traditional operation, a click farmer might own hundreds of mobile phones or computers, each using a unique IP address, and would have to physically interact with each device to follow accounts or like posts.

Modern operations, known as box farms, represent a technological leap. In these setups, devices are hooked up to a single computer, allowing the farmer to control every device with the click of a mouse. This allows for better space efficiency, as devices can be arranged in tight-fitting racks without the need for physical interaction.

Large-scale click farms can be immense; some bigger operations visited by researchers had different floors filled with thousands of phones and were capable of generating hundreds of thousands of likes and accounts daily. Smaller operations, while still substantial, can house over 17,000 phones at the same time.

These box farms are an evolution, often containing around 20 phones within a casing, typically with the screens and batteries removed. Farmers sometimes acquire devices like the Samsung S7—which flooded the market after battery recalls—and remove the batteries themselves for use in these farms. The sheer scale of the operation is sometimes revealed through law enforcement efforts; Thai police once raided a click farm and discovered over 300,000 SIM cards.

The Shift: From Bots to Humans

Despite the efficiency of bot farms, for those inside China, the news of traditional click farms is likely “old news”. The industry is rapidly moving toward a solution that is harder to detect, although almost equally cheap: human capital.

Given China’s massive population of 1.3 billion, the value of human capital remains low. Large click farm companies have begun paying humans cents on the dollar to watch 30 seconds of a video or click a specific page. Bot farms are quickly transitioning into human click farms. This strategy is extremely difficult to eliminate, detect, or even declare illegal.

This is because it would require legislating how human consumption time is spent, a step that even the Chinese government appears hesitant to take. This difficult evolution means that the problem of “social currency inflation” continues unabated in China.

Government Response and Consumer Impact

The Chinese government is concerned that if US and EU corporations believe they are being scammed by fake traffic, they may withdraw their advertising dollars. As a result, the Chinese government officially launched a campaign aimed at eliminating fraud on large e-commerce sites like JD.com and Alibaba, where vendors were boosting sales through fake transactions and reviews.

Amendments were made to China’s existing anti-unfair competition law in 2017, explicitly prohibiting false sales amounts, user ratings, or “honors” used to mislead customers. Under this legislation, such fraud is now punishable by a fine of around $3,000 US dollars. Since 2018, more farms have found themselves facing court cases under this new legislation.

Despite these legislative efforts, the problem has not slowed down significantly. The manipulation of popularity through these farms fundamentally impacts how people, particularly younger generations, understand the world through their phones. People tend to trust the analytics more than they realize, assuming that a video with 30,000 views is worth watching, or that content frequently interacted with must be true.

When someone is able to manipulate this “diet of information,” the consumer risks becoming “diabetic,” unable to properly process what is real. Raising awareness of how misleading metrics like view counts and user ratings can be is crucial to ensuring people question the authenticity of the content they encounter online.

Key Takeaways

  • Click farms manipulate online popularity metrics for financial and political gain.
  • The industry is evolving from bot farms to human-driven click farms, making detection difficult.
  • The Chinese government is attempting to combat click farm fraud, but the problem persists.
  • Consumers are increasingly susceptible to manipulated online content and need to be aware of misleading metrics.
 

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