Whither the Click? How Online Advertising Works

The click rate on internet display advertisements averages only 0.1%. This article investigates whether this implies that online display ads are ineffective, or alternatively that they work in a way similar to brand advertising in other channels.

Whither the Click?: How Online Advertising Works

Gian M. FulgonicomScore, Inc.

Marie Pauline MörncomScore, Inc.

BACKGROUND

In today's economically challenging times, advertisers and their agencies appear to be moving their online display advertising dollars from customer relationship management campaigns that require payment based on the number of people exposed to the campaign to “pay-for-performance” programs (“CPC” or “CPA”) that require payment when the consumer performs some desired action such as clicking on an advertisement.

At the same time, however, research is showing that a click may not be a relevant measure of the impact of display advertising. Click...

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