Emily Tan
May 9, 2013

People who click ads don't buy: FAME 2013

SHANGHAI - Clickthrough-rates are a false measurement that will lead online advertisers down the wrong path, argues Matthew Harty, Asia-Pacific general manager for Omnicom Media Group's trading desk, Accuen.

Matthew Harty
Matthew Harty

Speaking at the Festival of Asian Marketing Effectiveness 2013 in Shanghai yesterday, Harty related a ComScore report from last year that profiled people who clicked on online advertisements and those who ultimately converted. The online measurement company discovered a less than 0.01 correlation between the two groups. 

"People who clicked tended to be either very old or very young," Harty said. "In other words, they didn't tend to have much buying power. Those who converted tended to be from the middle age range—in other words, those who click are not your customers." 

Based on this insight, the obsession with clickthrough rates is dangerous and unprofitable for marketers. 

View all Festival of Asian Marketing Effectiveness coverage >>

"We don't expect people to click on print TV and radio," Harty continued. "Our expectation is strange that just because banner ads can be clicked on, that's the most important factor." 

Because 90 per cent of web surfers never click on ads, targeting ads to those who do is essentially aiming for a subset of a subset. "In fact when CTR goes up, conversion rates drop," Harty said. "Why are we concentrating spend and optimisation around people who are not likely to spend?"

Accuen's own insight on post-click information and post-view impression activity supports the study, he continued. Two campaigns, one geared for clickthrough rates and the other with a mirror strategy, not optimised for CTR, had identical conversion rates. "CTR had no bearing on eventual outcome," he said. "It's a false metric and using it the way we have is a mistake."

So what should online media buyers be doing?

1. Use the data to control the message

Consumers move through different stages in the purchasing process, and online those stages are clearly marked out like milestones. "We don't control messaging very well," Harty said. "We should be changing the message as they pass through each stage." 

2. Forget clicks forever

"They don't do anything useful for us," he said. "Get rid of them from our campaigns and don't go down that route anymore."

3. Keep our media-planning skills

While the instincts honed by media planners and buyers may not always be scientific, they represent experience gained over decades. "Computers have to try thousands of possibilities before they come up with the best answer," Harty said. "A person can cut through all that and save time." 

4. Don't be blinded by parlor tricks

New technologies can be like "mesmerising shiny baubles", but advertisers must strive to know how they work and apply them usefully.

"The technology might change, giving us the ability to do smarter advertising which changes the work forever," he concluded. "But the job's still the same, so the world has actually changed just a little bit."

Source:
Campaign Asia

Related Articles

Just Published

1 hour ago

TikTok ban looms: Meta and YouTube positioned to gain

With over 170 million users and seven million businesses bracing for impact, the looming ban is similar to TikTok’s struggles in APAC—from outright bans in India and Nepal to restrictions in Australia and New Zealand.

2 hours ago

One year on: Running an indie and the price of ...

"We were the same folks, the same award-winning team, just with a new name. But being indie was somehow synonymous with 'cheap' in the market. Seven lost pitches, six on price, it was a rude awakening," writes Moonfolks’ Anish Daryani.

3 hours ago

X escalates fight against advertisers

Less than a week before President-elect Trump takes office, X doubles down on legal war against advertisers with plans to expand its antitrust lawsuit.

3 hours ago

Spikes Asia 2025: Banana Balloon’s creatives on ...

Winning at Spikes in its first year of operation increased confidence and morale at China-based independent agency Banana Balloon.