Clickthrough rate Tag

[caption id="" align="alignright" width="300" caption="Image via Wikipedia"]New scheme of estimation advertising effectiveness[/caption]
In my introductory ad classes, students review two ad articles each quarter. And from the very first class I taught in January of 2001, an overwhelming number of reviews have extolled the glory of highly targeted advertising on the web. These articles described a virtual eden – where advertising’s power is increased because ad dollars are spent only on communication with those who care. Just imagine, they say, targeting by interest, by their browsing history, by online purchase history, by selection of keywords in the past 10 years, and perhaps even by the genetic make-up of the consumer’s children Ten years later, how is Eden? The answer is decidedly “mixed”. First, response rates to web advertising are horrible. I was reading

[caption id="" align="alignright" width="160" caption="Image via Wikipedia"]Quel ricco sfondato di Mark Zuckerberg, founde...[/caption]
Don’t you hate it when facts interfere with a good story? That must be the way Facebook feels today. Scoop is, somebody cared enough about where their money was going to take a hard look at the effectiveness of Facebook ads. A dedicated Facebook user’s response just might be “Ads? They have ads on Facebook?”. (Yup, those clusters of 20 words or so that clutter the right hand side of the page – sometimes with microscopic images attached.) And, that’s exactly the problem. We now learn that the clickthrough rate on Facebook ads is .051%. (Here is a summary of the study by Webtrends.) To be clear, that’s 5 one-hundredths of a percent. Or, one click through for every 2000 times your ad is displayed. Heck, maybe this rate is pretty good since your ad is probably only noticed once out of every 1999 times it’s seen. But it is scary that this clickthrough rate is DOWN. That’s right, the click-through rate was an astronomical .063% in 2009. And, there’s one more key concern. Facebook ads should be highly