Admob clarifies – Click through rates ..

Russell Buckley of admob clarifies on previous post for mobile click through rates

Hi Ajit

Russell of AdMob here. The original article rather overstated our click through rates, I’m afraid and Bena has clarified them in the comments section.

For the record, I quoted her about 0.5 – 1% as an average, but it was a noisy venue and I guess she misheard.

We have had much higher responses than this, but I don’t really think it’s very useful to “talk up” these as it will lead to disappointed advertisers. In other words, if you quote an average of 5% and the campaign delivers 2%, it’s going to lead to disappointment. If you quite 1% as an average and it delivers 2%, it’s going to lead to delight!

I also don’t think it’s really very helpful to focus on CTR anyway. The true measure is surely how well a campaign met its objectives and CTR isn’t always the key variable. As an example, some clients are looking for brand exposure, in which case CTR isn’t really relevant. And many look at Cost Per Acquisition, in which case a high CTR, with low subsequent purchase, isn’t very helpful either.

Finally, the problem with quoting very high average CTRs (even when they’re true) without releasing specific case studies to back them up, is that it can come across as mere hype. And the higher the CTRs become, the more it’s likely that people will be sceptical.

Cheers

Russell

Comments

  1. max planktus says:

    If we take a CTR of 0.5% on admob, which is mostly performance based; and assume that bounty to the publisher is 0.25, and bounty to the ad network is 0.2 (60/40 rule). (this might be a bit high, someone please ad their admob experience)
    1 billion impressions/month
    CTR = 0.5% == 5 Million converted ads
    5 Million converted ads at .2$ per ad
    => 1 M$ revenue / month for admob
    => 1.25M$ distributed per month to publishers
    i am sure this is a “dont look at the revenue, look at the growth” case. so, results aren’t so bad. When they hit 10 B impressions a month, it’s a real business !
    ok. I am sure there are also some CPMs in there (the banner on admob), but probably very targeted (let’s say, to the iphone users).