Plenty of Internet shoppers may click on your online advertisement, but less than 15 per cent of those ad clicks result in purchases or customer registrations, according to a new study by AdKnowledge, a Californian marketing services company.
In other words, click rates have little value in accurately determining a company's return on investment in online advertising. Instead, companies need to conduct more sophisticated data mining to optimise ad campaigns, said Steve Findley, vice president at AdKnowledge.
AdKnowledge's second-quarter study of more than 2100 Web sites also found that online advertising rates declined at a rate of 2.1 per cent for the quarter, falling from an average cost per message of $US34.96 to $34.23.
Meanwhile, the number of Web sites that carry advertising is expanding. At the end of June, 2111 sites and networks accepted online advertising, up from 1815 during the first quarter.