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NONE: Re: ONLINE-ADS>> Mass Medium, Targeting?

Re: ONLINE-ADS>> Mass Medium, Targeting?

LOpauski_at_aol.com
Wed, 8 Jul 1998 00:07:16 EDT

Ivan Weltman <egben_at_dockside.co.za> wrote:

><<Let's look at numbers. Assume a cap of 3, and for
>simplicity assume that a visitor to site A visits 3 pages.
>Assume a click thru rate of 3% of individuals seeing the
>banner. Assume 1000 visitors. Before cache busting 1000
>impressions were recorded and 30 click-thrus returning a
>3% rate. After cache-busting 3000 impressions are recorded
>with 30 click-thrus, a rate of 1%. The number of
>impressions actually delivered, and the number of
>click-thrus, hasn't changed, but the rate has dropped from
>3% to 1%. An over-simplification, perhaps, but
>unquestionably an important contributor to the recorded
>decline in click-thru rate.>>

Why does it hold in your example that increasing frequency from one to three
decreases CTR from 3% to 1%? Doubleclick has studied user response to
hundreds of thousands of advertising banners and determined that there is,
indeed, an optimum frequency on the Web. In fact, their studies show that a
CTR of 2.7% at frequency of one decreases to a CTR of 1.75% at a frequency of
3. This is a spread of 0.95% (< 1 %). With your CTR figures (declining from
3% to 1%) you are talking a spread of 2% (a difference of almost 100% from the
Doubleclick findings). What are you basing your conclusions on?

My point is, to even talk about the effects of cache-busting on CTR without
considering frequency is looking at half of a picure. The picture does not
have meaning unless in its whole. Moreover, controlling frequency has
different ramifications depending on the purpose of your campaign. For
"branding" campaigns, controlling frequency can be critical in making sure
your message has the right penetration - too few impressions and your message
is not getting through. For "direct response" driven campaigns, frequency
control can be more critical. So in this case, set your frequency cap at 2
and call it case closed.

Leigh Opauski
imADgiNET, Internet advertising solutions for the small business
a subsidiary of Global Link

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