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NONE: ONLINE-ADS>> Continuation - Stats on False Click-throughs

ONLINE-ADS>> Continuation - Stats on False Click-throughs

Bev Bernard (bev_at_notifyme.com)
Thu, 19 Jun 1997 11:47:16 -0700

I just wanted to confirm Arie Grossman's comments with my own research.
Arie comes up with an estimated 8% click-through loss rate, on average. My
research indicates a very close 9% average, with possibilities ranging from
3% to 20%. The important thing in this discussion is that this
click-through (or false click-through) loss needs to be considered when
calculating the cost of banners to the advertiser. Without it, your
numbers can be nearly 10% off, not something to take lightly when you are
working with a tight budget. Example, you pay $20 CPM for 600,000
impressions. You get a 2% click-through rate. You have paid $12,000 for
12,000 clicks (I am using easy numbers to work with, not necessarily a real
situation). It has cost you $1.00 per click. But in reality, with
click-through loss, you only got (on average) 90% of those clicks to
actually arrive at your site. The cost is $1.11 per click. This analysis
should be made in order to compare costs wisely when choosing advertising
options. It also should be made when comparing running banners on one site
versus another because the potential false click range is so wide. I would
rather advertise on a site where false clicks are only running at 5% than
with one that is running near 20%.

Bev Bernard, VP Operations, Ersys, Inc.

http://www.notifyme.com
bev_at_notifyme.com

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