Click-through Rate Debate: Facebook Says It’s Old News

by Mashable

Is click-through rate a relic of the past? Facebook wants you to think so.

click-through rate

Todd Wasserman, business editor at Mashable, writes that Facebook continues “in its mission to convince the world’s top marketers that the standard means of measuring an online ad’s performance – the click-through rate – doesn’t matter.”

Facebook’s Director of Pricing and Measurement, Brad Smallwood, as well as Tom Buday, head of marketing at Nestle, took to the stage at the IAB MIXX conference in New York to make their case. Smallwood “compared social media to the early days of television, which lacked a standard metric until Arthur Nielsen introduced a ratings system in 1950,” and instead proposed that marketers concentrate less on click-through rate in favor of reach and frequency.

As evidence, Smallwood cited a study which found a weak correlation between a high click-through rate and actual sales, as well as one that “found 99% of sales generated from online branding ad campaigns came from consumers who saw ads, but didn’t interact with them.” Wasserman isn’t sure whether “Facebook will succeed in convincing Corporate America that CTRs are a relic of the past,” but he says big companies are already taking sides.