Click-through rates are not a marketing or business objective.

In a recent article by Gavin O’Malley, Pre-Roll Ads Get More Bang For The Buck Than In-Banner, Study Finds, pre-roll ads are touted as being 8-25 times more effective than in-banner ads. The study was based on new data from Web video company BBE, where over 2 billion impressions and virtually all of the online video ad campaigns ran on BBE’s network in 2008.

As stated in the article, “BBE’s goal was to find out which format brought advertisers the most bang for their buck, based on the most effective measurement the company has — click-through rates.“ While we can commend BBE for conducting research and collecting data around the different online video formats, it is disappointing to see CTRs still getting so much attention.

CTR is an old world reach metric that ignores the measurability of interactive channels and does not align with marketer’s objectives. Better to use efficiency metrics like cost per desired action or return on marketing objectives (ROMO) and focus on customer metrics like change in brand perception, retention or CLV that better align with business objectives. Yes, we still need to measure CTRs, but this data should only be used in combination with other metrics to deliver the valuable insight marketers need to make informed decisions.

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