Re: online targeting

From: Ian Douglas <ian_at_zti.co.za>
Date: Tue, 2 Mar 1999 08:34:43 -0600 (CST)

Hi All

TIM LEE WROTE:
>As Leo Sheiner pointed out in his post, we are unable to
>make any general conclusion from those numbers. It is not
>because this case is not representative. It is because we
>can hardly explain why targeted banners generated lower CTR
>but higher conversion rate.
>
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

I don't see where the problem is...

The numbers show that serving targetted ads to people who
are supposed to be interested in "X" results in less
click-throughs but higher conversions. This is what I would
expect.

Why?

Well, since the viewer is more likely to be interested in
"X", maybe he already has one. So why click on the ad?

Or since he is more interested, he is probably something of
an expert on "X", and thus applies a filtering process to
the ad, and is highly selective about his taste in "X". Or
maybe he has already read all there is to read about "X" and
is not interested. Members of the general public, with
little knowledge of "X", would not apply this filtering
process so strictly.

Thus members of the target group who DO click on the ad are
likely have gone through this filtering process, do not
already own an "X" and are thus VERY VERY interested in "X",
which translates to higher sales.

QED.

Cheers, Ian
--------------------------------------------------------------
ian@zti.co.za http://www.zti.co.za
Zero to Infinity - A new kind of net company
Phone/Fax +27-21-948-3809


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Received on Tue Mar 02 1999 - 09:41:59 CST