More conversions come after ad impressions alone than after clicks

Marketing Today - A surprising finding from AdKnowledge has revealed that more conversions come after online banner ad impressions as opposed to click-throughs.

Adknowledge Inc.’s Online Advertising Report (OAR) reveals:

1. ROI Impact of Internet Advertising is Greater Than Previously Thought According to the OAR, on average, there are 33% more conversion events (such as purchases, registrations, etc.) from users who only viewed an ad, but did not click, than from users who clicked on an ad. “With AdKnowledge eAnalytics, we’ve been measuring conversions from impressions for our clients to track purchasers who convert from only seeing an online ad,” said Steve Findley, V.P. AdKnowledge Analytic Services, the company’s data mining and analysis arm. “This data yields two important conclusions. First, the potential ROI impact of Internet advertising is much greater than previously thought. Second, advertisers that focus only on clicks or even post-click conversions may miss vitally important effects of their advertising campaigns,” he explained.
2. Ad Conversion Events Peak Mid-Week OAR statistics show that ad deliveries, click throughs and customer conversion events peak during the lunch hour mid-week, with the lowest activity taking place on weekends. In the first quarter, AdKnowledge eAnalytics data shows 38% more activity taking place at noon Mondays through Wednesdays, than noon on Saturdays.
3. Web Advertising Growth Continues to Rise According to AdKnowledge’s OAR, the number of ad-supported sites and networks continues to grow rapidly. In the first quarter, the number of sites and networks grew by 723 - an increase of 22%.
4. CPMs Continue To Stabilize The OAR also shows online advertising rates continued to stabilize even as availability of sites continues to grow. Average cost-per-thousand impressions (CPM) rates remained nearly the same, falling only .48% in the first quarter of 2000 to $33.59 from the fourth quarter of 1999 rate of $33.75.

About the OAR Report

AdKnowledge uses aggregate statistics from its powerful data warehouse to supply valuable information in the Online Advertising Report (OAR) to marketers and agencies to help them optimize their Web advertising campaigns. The OAR is a compilation of Web advertising statistics analyzed by AdKnowledge eAnalytics, which provides marketers with a new level of insight into online advertising brand effects and resulting purchase behavior.

The information is gathered from the AdKnowledge System, which includes four components that span planning, campaign buying and trafficking, ad serving and targeting, and reporting. The more than 4,000 sites and networks in the AdKnowledge System are representative of the Web advertising marketplace. According to Nielsen//NetRatings, the Web-wide reach of U.S. sites and networks tracked by AdKnowledge is 95.85% of the home audience and 98.42% of the work audience.

The full Online Advertising Report is available at: www.engage.com/adknowledge/oar/oar_docs/oar_1stqtr00.pdf
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