Click Thorugh Rate

The web is amazing. You can move around this medium, going "virtually" anywhere. And just think what it means to your brand to be able to generate awareness and have a two-way presence in an editorial environment that has affinity with your product or service? Yes, yes. What a powerful branding medium this could be, placing advertisers' images and messaging in an appropriate editorial context, but with the added benefit of being able to have the potential consumer communicate with the brand. What a great medium for exercising a little engagement branding, getting folks to involve themselves in brand by having brand affiliated with this two-way medium. The promise of Internet advertising has always been that it is more quantifiable than advertising offline. Being able to quantify the impact of branding, and eventually develop best practices that work best for us, is a great benefit for the Internet advertising industry.

One of the measurement tools is the Click-Through Rate. The average number of click-through’s per hundred ad impressions, expressed as a percentage is a CTR. It is important to distinguish what a click-through rate does and does not measure. The CTR measures what

· Click-through rate did not predict the brand building impact of the ad banner exposure.

· Cryptic messages may increase click-through, though they may not attract the right audience or reinforce branding.

"Click-through rates are a misleading statistic," said Scot McLernon, executive vice president of sales at MarketWatch. "They aren't indicative of raised awareness of consumer interest." And the first idea of click-throughs was to get advertisers to look at the Internet as a passive medium, where branding is as important as interaction. To some degree, that theory goes against much of what has been the major selling point of online advertising. During the heyday of online content sites, advertisers were told that online ads would redefine the business, because for the first time, consumers would be able to interact with a company and not just passively view messages. Not only that, but advertisers were promised that they would be able to get precise measurements of just how their ads were viewed by consumers. Imagine if a magazine could tell its advertisers whether readers read individual ads or just flipped past them. Getting that level of data is fairly difficult in the offline world. For instance, lets take TV viewing. The challenge of the empty room where the TV is on but no one is watching, is a problem that ratings companies are still trying to figure out.

· The impact of a single web banner exposure on the Consumer Loyalty ranged from a 5% increase to over 50%, whether or not the viewer actually clicked on the banner.

· Logo size. Results suggested that the bigger the logo in an ad, the more likely the advertisement would send a clear message to consumers.

· Banners at the top of the page are twice as effective.

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