The Homa Files

According to an AP-CNBC poll …

User clicks are a critical part of an advertiser’s calculus when gauging the effectiveness of those ads and how much they’re willing to pay for them.

So, how does Facebook do?

Here are some survey results …

Well, since 59% of people say they distrust Facebook’s use of their personal data, it’s not that surprising that:

• 57 % of Facebook users say they never click on ads or other sponsored content
• 26% said they hardly ever click on ads
• 4% of users say they often click on ads

A 4% clickthrough rate is only slightly better than the 2% to 3% benchmark rate for “effective banner ads”.

Confronted with these realities, Facebook is now pitching that clicks don’t really matter … that ads on their pages work more like TV ads.

According to Facebook: “People who click on ads aren’t necessarily buying products, and people who are buying are almost usually not clicking”.

Facebook ads broadly create demand for products … they don’t necessarily evoke a “direct response”.

Oh, really?

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This entry was posted on April 15, 2013 at 8:30 am and is filed under Facebook, Internet - Soc Networking, Internet Marketing - eCommerce -, Mktg - Advertising, Predictive Analytics. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.