It's time we ended our obsession with clickthrough rates

I continue to be amazed at the constant obsession that agencies and clients have about clickthrough rates. CTR, CTR, CTR! It's fast becoming the dirtiest acronym in media -- or is it? As agencies increase their digital expertise and consistently educate clients about the importance of digital within the wider communications mix, it's become all too easy to refer back to the easiest to understand metric -- the ubiquitous clickthrough rate. One might argue that this is the most straightforward measure metric to start clients on and helps them understand the basics and build from there. I disagree -- we're missing a big trick and are in danger of oversimplifying a very complicated space by talking to clients in the simplest possible terms, using the simplest possible metric. In order to truly educate clients, we should be overlaying core digital metrics with language that clients already understand -- coverage, frequency, exposure, reach, recall, response and ROI. Ultimately Client X doesn't care what his CTR rate when all he wants to do is increase his brand awareness scores, but because that's what he's been taught by his media and creative agency to be the important metric, he has to crowbar this irrelevant metric into his results and somehow cobble together an explanation that clicks = awareness. So what are the alternatives? Ultimately the most sensible approach is to tailor your campaign metrics to your campaign objectives. A great example of this is a campaign that uses VoD to increase reach and frequency of brand TV activity. For the client, the key response metric is likely to be an increase in brand awareness scores and a demonstration of how this awareness converts into increased sales / viewing figures / ticket sales, etc. In a campaign like this, the CTR is irrelevant. What we really need to be talking to the client about is the total amount of exposure the target audience received and whether or not the VoD creative was successful in generating post-impression activity back to the client’s site. Tie this is with some quantitative reasearch and Client X will have a much better picture of the success of the campaign than if he were to just receive a report based on clicks and CTR. So to take it back to traditional terms, a campaign like this should be looking at reach, frequency and brand recall as core metrics of online success. Key to implementing this type of approach is an understanding of the role of digital in the wider comms mix. Digital isn't a channel or medium -- digital complements and enhances other part of the communications plan, which means that a silo approach where the digital agency / department receives briefs long after the comms planners / comms agency have crafted a solution will never work. Consumers don't consume media in channels, so why should media be planned in channels? Keen to impress your clients? Drop the obsession with CTR and start looking at the bigger picture. You’ll get better results and your clients will love you for it. Le'Nise Brothers is head of interactive, PHD Rocket.
 

Comments

Dean Donaldson
Dean Donaldson October 21, 2008 at 8:44 AM

Woman after my own heart!

Lets face it, clicks DO NOT equal response and are unnatural behaviour towards advertising. They are neither a branding metric nor a derivative Direct Response metric. They only time it can be argued if the latter has clear call to action saying click here to buy, and even then we see appalling fall-off rates.

You simply cannot and will not measure "animated” advertising on TV, Outdoor, Print and dare-say Mobile via a click to prove effectiveness, and neither do I believe it is the most effective way of measuring online display advertising. It is floored and based on historic user experience from Search and we simply would not measure any other media channel by such an immediate trigger-happy response. Every other channel takes a message to the people, not the people to the message (on a landing page).

0.5% clicks is suggesting that 99.5% of people exposed have had no effect. We now know through studies that most of the clickers are not the target audience anyway (reducing actual CPC to your CPM) and have ZERO recollection of the brand – so what is the point of the click? Most people exposed to an ad campaign (wherever) make an emotional connection with a brand that leads them into exploration and inquiry later on – this could be measured within the ad itself, or via search for further info or possibly (but relatively small numbers) on a client direct site. I would argue we trust reviews on places like Amazon more than client site information these days in terms of consumers moving through a conversion funnel.

With this in mind we must measure effectiveness in terms of exposure in situation such as Dwell Time (i.e. the number of seconds user interacts with a creative of their own volition) and then any resulting effect seen along a path-to-conversion – doubtfully clicked and more likely searched. From data I have I can tell you that 10-20% of impressions are touched and played with for 1 minute on average (twice as long as TV spot) and up to 30% of people searching have been "exposed” to an online display ad first. These are lot more exciting and interesting numbers to demonstrate digital advertising effectiveness then the measly few who bothered to click…

Dan O'Sullivan
Dan O'Sullivan October 21, 2008 at 6:26 AM

When presenting your figures, absolutely - focus on those that the client will not only pay attention to, but can also relate to in the end to end reporting of their campaign. But CTR can't be forgotten as it is key to understanding why your response metrics are behaving the way they are. If results were particularly poor, then you have to track back through to granular simplisitic levels like CTR to discover the reason, allowing you to evaluate and re-focus your next efforts. I agree that the obsession with CTR has been unhealthy and in need of review, but it still deserves it's place in what's accountable within your campaign tracking.

Tim Trent
Tim Trent October 21, 2008 at 5:18 AM

Thank god for sanity!

I still see people talking about Open Rates, let alone CTR! These people are trying to bamboozle each other with meaningless bovine scatology.

The only thing that matters is the ratio of positive outcomes to messages sent, whether that be enhanced brand awareness or physical purchases.

But I do find CTR a useful measure when compared with the outcome ratio in order to determine the effectiveness of landing pages. High CTR and low outcome ratio implies poor landing page.

To be a little fair to CTR, though, a high CTR does imply that the initial call to action was good enough to generate sufficient interest to click. We can;t abandon it, we must qualify it instead. For far too long people have seen CTR as the end goal. Ludicrous, of course!