Are click-through-rates really a thing of the past? Just try convincing marketers of that.

 

Facebook’s new undertaking to convince marketers that click-through rates don’t matter is, in my opinion, quite bold. To most marketers CTR is presumably a standard measure of an online ad’s performance, or has been to date. However, with new research from Nielson showing only a 0.07% correlation between high click-through rates and actual sales I could just be convinced.

It’s hard not to be skeptical of this messaging, since Facebook’s display ads typically get fewer click-throughs, but it does certainly make sense to look beyond the click. According to a study from Datalogix, 99% of sales generated from online branding ad campaigns came from consumers viewing the ads, not necessarily interacting with them. Which if true, does seem to make the point that we should be looking at performance not solely in terms of click-through rates.

Facebook is now recommending marketers look at creating value through impressions, maximizing reach, and figuring out the right ad frequency, all of which supposedly create a “clear roadmap to success for digital marketers” according to Facebook’s head of measurement and insights, Brad Smallwood.

I would argue that when it comes to social media there is no such thing as a clear roadmap to success. I do think while click-through rates have their advantages in terms of measuring direct response to ads, it is important to look critically at advertising objectives to figure out if perhaps metrics should be looking at targeting upper funnel measures such as awareness and familiarity with the brand.

 

References: Facebook to Marketers: Clicks Don’t Matter, But Reach and Frequency Do, Facebook Says It’s Looking Beyond Click Throughs