Should low click through rates put you off online display advertising?

Ok, I guess no one will be surprised to hear me say no. But perhaps the reason why might be of interest.

The simplicity of measuring online advertising is clearly a benefit. However, the actual stats make a far from compelling case. Across the globe, online display ads only gain around 1 click every 1000 impressions. Click through rates (CTR) currently around the globe are 0.9% and in Australia it’s even less.

Sure, ad networks are talking about viewable impressions or hover time being a better proxy going forward.

But the question still remains, why is online display advertising seeing 18% year on year growth and has a 23% share of an online ad industry that is on track to reach $3 billion this calendar year.

Well let’s start with the medium. You’ve got to be where the action is, and that’s online.

People are spending more and more time online and more and more businesses are joining them. According to Nielsen research, the average internet user now spends 68 hours online per month. That’s over two hours a day.

While Deloitte Access Economics noted that the total number of Australian domain names registered reached 2.18 million last year. 2011 saw almost 60,000 new domain name registrations each month in Australia.

So, considering the surge in websites and the consequent traffic, it makes sense to advertise in the online arena.

But then why not concentrate on search directory advertising (such as Google Pay Per Click)? In short, these text based ads, appear where and when people are actually searching for the related product, hence, click through rates are normally stronger.

Well, whether it’s online or offline, to establish an on-going bond with consumers, we need to introduce the brand. We need to invest in our brand bank.

Organisations that invest in brand building, ensure better reach and effectiveness over the life of their brand. When it comes to on-going media spend, essentially their return on investment (ROI) will improve with heightened brand awareness.

And like its offline cousin, the billboard, online display advertising is a popular brand-awareness tool amongst marketers. However, it’s more than a static billboard, it can be dynamic, animated and engaging.

Display ads serve a greater purpose than simply CTRs. In addition to creating brand awareness, display ads actually increase CTRs of search ads. By taking an integrated approach, using search in tandem with display, you can finally cast a comprehensive net across your customers, driving clicks, leads and sales.

Dimmi ‘Best restaurants’ online launch campaign.

1Cover ‘Working harder for your travel insurance’ online campaign.


Sydney Monorail Smartcard online launch campaign.