Click-through not enough to analyse online ads

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.