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Oct 24, 2008

Online Text Ads Most Clicked, Why Bother with CPC?

Ed: Advertisers and agencies working too hard to get readers to click. Why bother?
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Online Text Ads Most Clicked, Only Young Like Video

Despite current buzz around fancy and expensive video ads, only 11% of consumers say they are likely to click on them, compared with 25% who would likely click on simple text ads and 20% who would click on right banners, according to a study from iPerceptions, Inc.

Though video ads are unpopular overall, the under-25 set is more likely to click on them than on any other type of ad. This age group accounts for nearly one-third of the video-ad viewing audience.

First-time visitors to a site and those with lower incomes also are more likely to click on video ads than other ad types.

The study found a strong relationship between income and likelihood of clicking. As consumers’ incomes rise, they become less likely to click on ads. On average, 40% of consumers likely to click on any ad make less than $50K a year - and only 15% make more than $150K. The income gap is most pronounced with video ads, with 49% of consumers likely to click on video ads making less than $50K a year - and only 13% making over $150K.

Click frequency also increases as site loyalty rises. Across the board, 65% of consumers likely to click on online ads are weekly or daily browsers on a site, and only 15% are first-time visitors and 6% are sporadic visitors...


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