Do Click-Throughs Really Matter?

With the online advertising market growing by leaps and bounds – although still only 5% of total ad spending – there’s lot of discussion about how advertisers measure success. Is it click-throughs? Is it measured by purchases, the amount of information collected or downloads of white papers, etc.? According to the Journal of Consumer Research (hat tip Ars Techica), the most important thing for advertisers is exposure and ads that make a consumer feel good about a brand or product. If that’s the case, do click-throughs matter? If not, then there’s little to worry about click-through rates of 2% to 3% if you’re really lucky. Perhaps the power of online advertising is just being there and offering creative that resonates with consumers. This would suggest branding – not actions such as purchasing or filling out forms – is the goal for advertisers. It’s an interesting theory that could change how many advertisers approach online spending.

An interesting to way to test this theory is putting it up against AdSense, which is all about click-through so consumers can do something – be it gather more information, make a purchase, etc. Using targeted advertising and a pay-as-you-go formula, Google has created an easy way for advertisers to venture online in a way where they can measure their success (click-throughs) while controlling their spending. The question is whether AdSense works beyond the click? Many advertisers must believe the ROI is healthy otherwise the Google cash machine wouldn’t exist. I would also argue AdSense thrives because it’s the only way many companies, especially smaller ones with modest budgets. can do targeted advertising. In many ways, AdSense is Online Advertising for Dummies because it’s simple, popular, and apparently works. For advertisers who want to move up the food chain, banner ads play a big role. And if the Journal of Consumer Research is correct, there may be a whole new way to measure ROI and success.