Conversion and Convergence: the transparency of click-rates

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In the last decade, there was a lot of discussion between media and platform providers versus clients. The topic was all over the world valid – next to negotiations on the cpx-currency: What are average click-rates for banner advertising?

Now, that leading marketers admitted in the latest CMO report that they need to get more power on their conversion. The first online strategy rule to bear in mind is: clicks are still the basis for the success of an ad campaign.

Although click-rates is not the basis for conversion -for transforming a consumer into a customer- it simply shows the amount of users who wish to access the advertiser’s website or landing page. It seems that the common perception still is that click-rates indicate the success of a display campaign. Now, there is some proof on the best-hidden online secret ‚average click-rate‘ in our modern online world. This week there comes some transparency and background-light, provided by Eyeblaster and ADTECH.

Eyeblaster Analyst Bulletin
In their latest bulletin ‚Trends in Conversions‚ of more than 2,000 campaigns representing 29 billion impressions, Eyeblaster concludes that the average click-rate is 0.14% which does not correlate with the convergence rate. That is much higher with 0,32%! Via conversion tags, which were placed on the advertiser’s web site, Eyeblaster was able to track actual user activity that the marketers and advertisers are looking for. The interesting story on top of these findings is that ‚In-Banner‘ conversion is 5-times higher than On-Site‘ data capture.

The bulletin offers some very interesting insights in banner conversion and optimization, data capture creation and benchmarks for different banner formats, click rates and performance statistics in different markets. It’s definitely a recommended reading on the future of display advertising and results…

ADTECH (via eMarketer)
A recent study of more than 10 billion banner inquiries across Europe states that the average click-through rate is somewhere between 0.11% and 0.19%. eMarketer makes clear that the end of the season, i.e. X-mas shopping, is a powerful driver for higher click-rates. But it has to said, that there is no definition explained on B2B or B2C, banner- or creative formats differentiation – it’s an average number.

And sure, there is some difference between European countries. It surprises that the majority of clicks in display ads still go to pop-ups and layers 0.5% although these format seemed to have killed the consumers nerves for ages (imho). The future definitely belongs to video ads (1.7%). See…

Spot On!
No doubt, summarizing these studies it becomes clear that the average click rates on classical display advertising have been decreasing by half, from 0.3% to less than 0.15%. BUT: Companies and agencies have to ask themselves what the reasons for this ‚recession on click-rates‘ is.

Apart from obligatory argument of ‚banner-blindness‘, watching the development of client’s and agency’s creativity there is some obvious tendency from an ad consultant perspective…

– colors not ,catching‘ the users attention
– creative scenario not for the consumers (nor customers)
– text talking to target-group
– pictures not attracting the target-group
– banners ‚clickable‘, but not immmediately
– call-to-action missing
– call-to-action displayed too late
– a free-be does not make a sale
– mpu’s have become simple bigger (or video) banners, not multiple-functional creations

Come on there are thousands of reasons. It’s yours. Be creative, find some more and help us all….

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