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The Daily Stream

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Have Click Rates Finally Stopped Declining?

November 16, 2010 // By: Stream Companies

Findings show encouraging signs for advertisers 

One of online marketers’ simplest metrics, the clickthrough rate, has been in decline for years. However, the decline appears to have stopped.

Analysis of data from July 2006 through July 2010 shows that annual average click rates have plateaued, at 0.9%.

We’re finally seeing clickthrough rates reach equilibrium; demonstrating that online advertisers have reached a new level in their ability to lure potential customers.

The end of CTR decline is good news for all advertisers, however studies reveal that successful display campaigns shouldn’t focus solely on clickthrough rates.

The chart below reveals that only 20.4% of ad conversions came from clicking on an ad. Instead, the vast majority of ad conversions came from viewing a banner ad without clicking it, and then converting at a later date.

To conduct successful display campaigns moving forward, advertisers are being advised to consider sophisticated ads, pay attention to placements and take advantage of retargeting.

For more information regarding online display advertising trends and news, please contact us at StreamCompanies.com

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