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6% of the folks generate all the ad clicks

pcause (209643) writes | more than 6 years ago

The Internet 1

pcause (209643) writes "A recent study says that 6% of web users generate 50% of the click throughs. Worse for advertisers, most have incomes under 40,000 and the clicks are not related to any offline buying. This is VERY bad news for ad supported web sites and businesses, as rates should drop if this is the case. Can you hear the sound of the Web 2.0 bubble bursting?"

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1 comment

it's not the CTR, it's the conversion rate (1)

ebpebp (1238402) | more than 6 years ago | (#22402238)

i'm not a big fan of the idea that CTR is the sole determination of the value of an ad campaign, either for display or for search, but it's worth noting that advertisers aren't making their spending decisions based on CTR. they're making their decisions based on conversion rate- which the number of people who clicked through and then converted to a sale, or completed an action- and then determine the rate at which they're willing to spend to aquire clicks against a keyword. in other words, the cost of all those clicks that don't lead to a conversion are baked into what an advertiser is willing to pay for those clicks that do result in a conversion.
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