Overrated

KOVERRATED WHY CLICKTHROUGH RATES CAN'T ACCURATELY FORECAST ONLINE UIDEO AD sucCESS When it comes to online videos, advertisers like to use clickthrough rates, or CTRS, to measure success and to justify campaign budgets. Turns out, this metric is about as predictable as the weather. A study by leading video ad network Tidal TV shows how this method should be taken with a grain of salt. xUnpredictability of Clickthrough Ratesx By Industry The percentage point difference between the highest and lowest performing industry is more than 45 points. This proves that with such a diverse set of products and services, CTR must be evaluated differently, according to different category benchmarks. INDEX BASED ON AUTOMOTIVE INDUSTRY = 1.00 1.15 HIGHER PERFORMING FINANCIAL 1.11 HOME IMPROVEMENT 1.03 ENTERTAINMENT / MOVIES 1.00 0.99 AUTOMOTIVE 0.97 DEPARTMENT WIRELESS STORE / RETAIL PROVIDERS 0.93 / PRODUCTS 0.92 CONSUMER TRAVEL PACKAGED (AIR/HOTELS/ GOODS DESTINATIONS) 0.87 PHARMA (DTC / OTC) 0.69 ONLINE WEBSITES / LOWER PERFORMING PROPERTIES By Gender & Age Gender INDEX BASED ON MALE = 1.00 While men and women show only a slight variance in CTRS for online video ads, age proves to be far more diverse, with young'ns and seniors out-clicking 25 to 34 year-olds by 12% each. AGE INDEX BASED ON 25-34 YEARS = 1.00 FEMALE MALE 1.02 1.00 15–17 65+ 18-20 55-64 1.12 21-24 35-44 45-49 50–54 1.12 25-34 1.06 1.04 1.02 1.01 1.02 1.03 1.00 By Day of the Week Although the work week shows higher CTRS than the weekend, and Wednesday clearly takes the mid-week peak, with an increase of nearly 27%, the rest of the week lacks any significant variance. INDEX BASED ON SUNDAY = 1.00 1.27 WED. 1.11 TUE. 1.09 THU. 1.06 MÓN. 1.05 FRI. 1.00 SUN. 1.02 SAT. By Geographic Location Contrary to the assumption that larger metro areas would perform best, the highest CTR performance was found in states like Alaska and Georgia, with no predictable trends at the state level. 1.12 CTR Index Range 1.04 0.97 Predicting Success: Quality Ouer Quantity When it comes to gaging CTRS, a generalized scope simply won't work. Instead, advertisers should focus on these following factors: AGE GENDER OPTION A. OPTION B. Length of uiewing time LOCATION Demographic Conuersion Noting the targeted baseline of the ad, such as age, Here, advertisers want the viewer Measure the effect of your ads to see what kind of conversion traffic to not merely scan their ad, but view it in its entirety. gender and location. that ad generates. By applying these various targeted factors, the campaign's relevance can actually be measured with greater precision. Created By: WISTIA Sources: TidalTU.com emarketer.com COLUMN FIVE