Impressions and engagement are fine for a branding campaign, but if you want results, you need to track clicks … right? Not exactly.
One of the benefits of online advertising, compared to traditional media, is the ability to track performance on a granular level.
For years, marketers and agencies have used click-thru-rate (CTR) to determine the effectiveness of a campaign. And, some campaigns are purchased on a cost-per-click (CPC) basis, only paying for clicks received.
Consider these statistics before you evaluate the effectiveness of your next local media campaign:
According to comScore, 8% of online users represent 85% of all clicks.
That’s right, “Heavy and Moderate Clickers” make up a majority of clicks. As we know from our own media habits, you may not want to redirect to a landing page in the middle of an interesting article, but that doesn’t mean that you ignore the ad or the message.
Many advertisers see a noticeable lift in site traffic when a display campaign is live. Oftentimes the traffic is attributed to search, because someone searched for you after being exposed to the advertisement. Don’t discount the power of your campaign just because the visitor isn’t directly attributed to that particular ad.
The metrics with the highest correlation to conversion are interaction and viewable impressions, not clicks.
A recent study from comScore and Pretarget show that interaction and viewable impressions are the top metrics correlated with conversions, at 0.49 and 0.35 respectively.
Interaction is classified as user engagement, such as hovering over the ad. Viewable impressions ensure the ad is viewable in a user’s window, not just displayed on the page.
More importantly, clicks showed almost no correlation at all, at 0.01.
The industry average click-thru-rate (CTR) is 0.05%.
This figure will vary by campaign type, product category and creative execution. You can increase CTR and engagement by utilizing rich media units and video, versus a basic flash banner campaign.
Also, the more relevant a message is to the user, the more likely they are to interact with your brand or product. Utilize all applicable targeting options in your online campaign, such as demographics, geography and behavior. This isn’t broadcast, you don’t have to advertise to the masses and hope you reach your target demographic.
Not all online vendors provide the same level of tracking and targeting. When evaluating online campaigns and strategy, start with the right questions. Ask for a report sample, so you know up front which metrics are available.
How do you measure success of an online campaign?