Is CTR Just a Crock?
It is not a surprise to anyone in the online advertising business that the CTR (click through rate) of your campaign does not always determine how strong or well your campaign is doing. If you are like most people you will just ignore the banner ads, or even more the annoying pop up ads while you are serving the net. Maybe only clicking on one, by accident when you are trying to close out of the page, won’t hurt.
So why do advertisers even bother with display advertising? Even though CTR may not be the best way to measure your success rate (but sure seems to be one one of the easiest) it still drives traffic to the advertisers site. According to adage.com, “Consumers exposed to a display ad were 65% more likely to visit the advertiser’s site than users who never saw the ad.” Personally, I think that advertisers should be focusing more on conversions rather than CTR. Having a high CTR is great, but you need a low CPA (cost per action), and high ROI (return on investment) to maintain/increase revenue.
Even with display advertising becoming more advanced over the past few years with expandable, floaters, and even interstitial, it still does not seem to cut it. Display advertising is great if you are just trying to get your name out there, but if you are looking increase and revenue there are defiantly many other better options to look into.