According to research by the search engine giant, between 12 and 15 per cent of clicks on Yahoo! search marketing ads are "fake" and as a result are discarded from advertisers' bills.
The news could be welcomed by internet advertisers, as it indicates that the clicks they are paying for are from consumers who are genuinely interested in their products and services.
However, the search engine company pointed to Panama, its new advertisement publishing network, which it claims is set to give companies more control over their marketing budgets and prevent fraudulent clicks.
Writing on the Yahoo! Publisher Network blog, Michael Mattis claimed one of the new Panama features is "quality-based pricing, which will help ensure that traffic is priced consistently with the quality it delivers".
Earlier this month, rival search engine firm Google announced that about ten per cent of its PPC activity is 'invalid'.
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