The Value Of A Click

Criteo came out with a research paper last month that dispels several myths about the value of the click in online advertising. Read a summary below, or download the study here: Measuring the Value of Users Who Click Online Display Ads

Myth: People don’t click, and those who do click are not worth targeting.

This conclusion stems from a 2008 Comscore study that claimed that less than 10% of all internet browsers account for 80% of clicks, and that they are mostly an unappealing demographic (aged 25-44, make less than $40k a year).

In other words? Clickers aren’t buyers.

Criteo disagrees. They tracked nearly $100 billion worth of online transactions in 2011 and analyzed their findings. Here are some interesting conclusions:

•  20% of those browsing the internet are responsible for 50% of all clicks and sales.
• 80% of clicks are coming from 50% of the users.
• Those who click often, buy often, and since people click when they’re interested in the advertised product, those who click buy 3x more frequently.

The final conclusion?

“We have reviewed over $10B of e-commerce sales and have learnt that the audience who clicks on timely, relevant ads is extremely valuable.”

We tend to agree.