Clicks vs. Click Throughs and Why You Need to Understand the Difference

Thursday, February 26th, 2009

If you run advertising campaigns, you should be receiving reports from the publisher’s ad serving software/company showing you the number of impressions your ad received, as well as the number of clicks.

This information can be valuable to you as you decide whether or not to proceed with additional ad campaigns with said vendors. But what is a click, really? For vendors and ad-serving comapnies, a click can include the following:

1. People who click through to your website
2. Spiders/bots/webcrawlers trolling the net to index information and links
3. People who clicked on your ad (by accident) and realized that wasn’t the action they wanted to take and closed things down before actually visiting your site
4. Fraudulent click activities – which end up being a combination of automated clicking devices/ip addresses who never make it to your site

As you can see there are a lot of instances where a click may not be an actual click and may be inflatign your results. This is where the click-through comes in.

A click-through is exactly what it sounds like – someone has clicked on your ad and landed on your (campaign landing) page.

It can be kind of tricky to get this information, as it requires you to have your own tracking system in place that allows you to place your own click tags in your ads (as well as those from the ad serving company/publisher.) It also requires you to have the ability to place tracking code on your site to tell when someone has clicked through from an ad.

Generally speaking, if you sit down with your IT and marketing teams, you should be able to figure out a way to do this – especially if you are using some sort of paid tracking software/system.

Did you know that the variance between clicks and click-throughs can differ as much as 30-50% in some cases? Every tracking system will be different and there will always be discrepancies between data sources, but normally you look for a less than 10% differnce.

Paid Search advertisers seem to have the lowest data discrepancies, and that is because they have long since instituted double tracking and didn’t stand for the difference between clicks and click-throughs, especially because paid search is billed on a cost-per-click basis. This forced serving companies/software systems to pay attention and fix the discrepancies quickly in order to avoid losing money.

However, in banner advertising, most programs run on a Cost per Thousand (CPM) impressions basis, so it’s advantageous to the publisher to show lots of clicks and not worry about fixing any potential discrepancies. For anyone who is running banner advertising campaigns on a CPC basis, I strongly recommend you ensure there is a second tracking option in place for you to compare the numbers.

Perhaps it’s time to stop and take a second look at your advertising campaign and see how it’s really doing.

Photo Credit: iamwahid; Stock.Xchng

Roadblocking the Way to New Online Ad Measurement

Sunday, September 28th, 2008

All forms of banner advertising should be measured with the same yardstick.

That statement couldn’t be further from the truth, yet more often than not, this is how things are done.

Roadblocking is not a new term, it’s been around in the television space for sometime now and refers to an advertiser buying all of the ad placements within a given media space. In this instance, we’re referring to an advertiser who has purchased all the impressions / ad placements on the same page of a particular website during one specific time frame.

Roadblocking is good for things such as campaign launches and general brand awareness as it gets your message out to the masses since it takes over every advertising spot your audience might see as they visit that site/web page. Click through rates for these types of ads are generally found to be low because the impression levels are so high.

Generally speaking, a roadblock has a leaderboard and a skyscraper and a box or rectangle of some kind.

To calculate click through rate for banner ads, you divide your total clicks by your total impressions. So if you get 3 million impressions as part of your roadblock campaign and 100 people click through, your click through rate through rate percentage is 100 divide by 3 million.

Which is completely incorrect.

It should be 100 divided by 1 million.

Each time an ad is shown that counts as an impression. If your ad is showing at the same time as another one of your ads in a different size on the same page, that’s also an impression for that ad – which now gives you two total impressions, for one person or set of eyeballs. And if someone were to click through on one of those two ads, that should be a 100 per cent click through rate.

Why?
Because it’s physically impossible for someone to click on both ads if served at the same time, yet standard click through rate measurements don’t take this into account.

As you evaluate your next online ad campaign, consider these two things:
1. Did you run any roadblocks?
2. Do you know if your ads ever appeared together on the same page at the same time?

If you answered yes to either of these scenarios, then you’re actually calculating your click through rate based on a physical impossibility and it’s time to see how these banner ads are really doing. You might just be surprised by what you learn.

Photo Credit: iboy_Daniel; Flickr