Why You Shouldn’t Focus On Click-Through Rates

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Display ads are nothing new. Having been around now for over 20 years, it has become a common way to advertise online. And when we say common, we mean really common. Did you know that on average you see 362 display ads daily? That’s approximately 22 ads per every hour you’re awake. With such a flood of information you can’t expect users to click on every ad they see; they would never get anything done. But just because a user didn’t click on an ad, doesn’t mean it wasn’t noticed and remembered.

In 1994, the first banner ad received a click-through rate (CTR) of 44 percent. Over the years, it has slowly declined and is now around 0.1 percent for standard display ads, not including video or rich media ads. But, that doesn’t mean display ads no longer work. As online advertising performance changed, so did the methods, strategies, and reporting. The click-through rate is no longer the key performance indicator (KPI) of a display ad.

Many businesses no longer focus directly on the CTR because they are more focused on quality over quantity and reaching the right person, with the right message, at the right time. The goal has now become to drive action that leads to a purchase, regardless if that translates to a click or not. Ads are driving more actions than just clicks, including website visits and product research, and they must all be taken into consideration when looking at a campaign’s performance.

According to SEOmoz, 53 percent of people surveyed said they were likely to search online for a product featured in an ad they saw, which is the same percentage of who said they would click on the ad. This proves that searching for more information is just as likely as clicking on an ad, it just doesn’t happen as fast. Seventy-four percent would click on an ad immediately or within an hour, while 52 percent would search online immediately or within an hour.

Several aspects influence the action a user will take on display ads, including how close they are to a purchase decision, messaging, age, gender, and income. Utilizing consumer data is extremely useful to reach a consumer with the right message at the right time, in turn increasing your possibility for a conversion.

Savannah web development agency Robmark Web specializes in various forms of online advertising, including display ads, search advertising, pre-roll, and more. If you are interested in reaching new potential customers through online advertising, please call (912) 921-1040.