4. A new bar hosts its Grand Opening, and 10,000 people show up. Nobody
buys anything. The majority of people leave without even looking around.
Later, the bar declares the event to be a rousing success.
This joke, which originated in Silicon Valley, illustrates the problem. The click-
through rate (CTR) is a popular metric. In fact, an entire model – the pay-per-click
(PPC) – has been created around it. It’s often thought to be the most important
measure of success in digital advertising. But is it the most useful?
Certainly, a click shows the viewer probably noticed your ad, at least, even
if it was just in passing. But while the click-through has its place, its utility may
be lacking. If all your potential customers do is click, then your campaign may
ultimately fail. And though it may seem counterintuitive, you can run a successful
campaign without counting on click-throughs at all.
WHO’S CLICKING, AND WHY?
It may surprise you to learn that digital advertising has been around for over two
decades. The first banner ad, for AT&T, ran in 1994. Simple, effective and cheap;
display ads quickly took over the internet, and later, the mobile world. Today,
digital advertising dominates. The typical American is exposed to about 1,700
banner ads a month, with an average click-through of less than 0.1 percent (one
in a thousand). And, it’s estimated that about half of all clicks on mobile ads are
made by accident.
But despite these statistics, display advertising is still an effective way for
businesses to connect with potential customers. People can and do click on ads
for products and companies they are interested in, and many end up converting
to customers. When used correctly, retargeting1
(a form of online targeted
advertising where ads are targeted to consumers based on their previous internet
actions in situations where those interactions did not result in a conversion/sale)
can also ensure that the advertising message reaches the right set of eyes,
so customers see ads for things they are interested in buying.
TRACKING BEYOND THE CLICK-THROUGH:
THE ENGAGEMENT STACK
As digital ads have changed, so have the methods used to track them.
Sophisticated attribution-management methodologies use algorithms to create
what’s known as an “engagement stack,” which allows advertisers to recognize,
among other things, whether a person who clicked on a display ad one day was
the same person who visited a website via a search engine the next.
1
For information on retargeting and other digital targeting tactics, download the white paper
Zero in Targeting
BEYOND THE CLICK-THROUGH | 2
If all your potential
customers do is click,
then your campaign
may ultimately fail.
5. BEYOND THE CLICK-THROUGH | 3
Modern algorithms use various methods to recognize and track customers.
The most common are listed below:
Cookies: One of the oldest and most simple technologies, cookies are
pieces of code that servers place on the user’s browser. A cookie enables
a browser to “remember” when a user has visited a site, allowing the
website to track individual touchpoints. It also makes it simpler for users
to return to their favorite websites.
However, many popular browsers allow users to clear their cookies, and
some users make a point of removing them for privacy reasons. Though
cookies are still the most common way of tracking users, they are also one
of the most obvious.
Click Redirects: For media that runs outside of the ad server, click
redirects can be applied within the URL. They send the user through the
server, where a cookie is placed, and then return them back to the landing
page. This is a type of cookie-tracking technology that is less noticeable
to the end user, and gives ad servers the same information they can use
to track the person and their data.
Pixel Tags: These are used in media where click redirects are not
an option. Pixel tags are tiny, transparent GIF images that are added
to a web page. These tags are virtually invisible, but are still served like
any other online image. Pixel tags work like cookies, allowing the server
to identify the user and providing it with the information it needs to track the
user’s activity.
These examples do not form a comprehensive list. As users become more
sophisticated, digital advertisers are developing more complex ways to track
every move a customer makes.
Ad tracking is powerful, and it generates a lot of data. But to gain the results you
want, you often have to look at it from a 360 degree perspective, considering all
touchpoints, and then return to it with a holistic approach.
Rather than focusing on click-throughs and other metrics by themselves, it helps
to start by analyzing which path a typical user will follow, from targeted lead
to converted customer. In this example, featuring a fictional home-improvement
store, you’ll see how a customer can be converted with no click-throughs at all.
MEET KATE: A CUSTOMER IN SEARCH
OF A NEW KITCHEN
Andrew’s Appliances is a large, locally-owned home store which sells
appliances, cabinetry and fixtures for the home. To better position themselves
against competitors, they have been focusing on one of their strengths:
custom-designed home remodels.
Rather than focusing on
click-throughs and other
metrics by themselves,
it helps to start by
analyzing which path
a typical user will follow,
from targeted lead
to converted customer.
6. BEYOND THE CLICK-THROUGH | 4
Andrew’s has been targeting homeowners interested in remodeling for awhile
now, so they have a good idea of what their typical customer looks like. Kate fits
the bill.
She’s a 34-year-old dental hygienist, married with one child, living in the Seattle
DMA2
. Kate and her husband recently purchased their first home in Ballard –
a fixer-upper. Their first project, a kitchen upgrade.
An avid consumer of kitchen remodeling content, Kate regularly checks out
TV shows and websites for inspiration. During her lunch break at work, she’s
reading an article about refrigerators when an Andrew’s Appliance pre-roll video
ad is served. Though the video catches her eye, she needs to get back to her
patients, so she doesn’t click.
Andrew’s advertises on other channels as well, and Kate regularly sees their ads
on TV, Facebook and YouTube. She still hasn’t clicked, but one night, as she’s
looking over her her 1980’s-era Harvest Gold range, she makes the decision
to visit Andrew’s Appliances. But where is the nearest location?
She fires up Google, types in the name and clicks on the first result: a sponsored
listing (search engine marketing) of the store website. Coincidentally, the ad is for
the Northgate location – the location closest to her work.
A chat icon opens up, asking if she has any questions for one of their in-house
designers, and Kate asks about options and prices. The designer says she’ll get
back to Kate via email, and sure enough, the message appears in her inbox,
asking if she wants to make an appointment for the following Saturday.
At this point, Kate has to go (something’s burning on the Harvest Gold stove!)
But later, she Googles Andrew’s Appliances one more time before confirming the
appointment with the designer to discuss her remodel in person.
Andrew’s Appliances advertising was a success. After the appointment, Kate
signed off on the designer’s recommendations, and Andrew’s gained another
valuable customer. But though Kate noticed and responded to multiple advertising
touchpoints, no click-throughs were made.
Instead, Kate’s customer path looked something like this:
First touchpoint(s): Blended targeted campaign
As she clicked on kitchen remodeling content, Kate was exposed to several
targeted display ads for Andrew’s before being served the pre-roll. Even
though she didn’t click, the high engagement of the pre-roll video, combined
with the precise targeting (new homeowner, interested in remodeling,
Seattle DMA) made her aware of the business and how it could meet her
kitchen-remodeling needs.
Second touchpoint: Multichannel marketing
The banners and pre-roll may have piqued her interest, but the additional
impressions in broadcast TV, social media and YouTube, cemented
Andrew’s Appliances in her mind. She made the decision to find out more.
2
The Seattle Times Market Boundaries
Though Kate noticed and
responded to multiple
advertising touchpoints,
no click-throughs were
made.
7. BEYOND THE CLICK-THROUGH | 5
Third touchpoint: Search Engine Marketing (SEM)
When Kate wanted additional information about Andrew’s, she wasn’t about
to wait for another digital ad to pop up. She took to Google, where paid
SEM delivered the search results she was looking for. On her first click,
she was already primed to buy. But because a home remodel is a fairly
complex purchase, a few more steps were needed before she converted
to a customer.
Final touchpoint: Virtual sales and conversion
The website offered initial information, Kate had a few questions which
were effectively addressed through the site’s Chat and email features.
Through personal communication, the designer from Andrew’s was able
to pre-close the sale by scheduling an in-person appointment.
TIGHTENING UP THE TOUCHPOINTS: SETTING
UP YOUR PROGRAM FOR SUCCESS.
Kate’s experience with Andrew’s Appliances illustrates the importance of meeting
your customer’s needs at all points in the sales process. Andrew’s was able to get
Kate’s attention through multiple ad impressions. But impressions were only the
beginning.
When it came time to seek out specifics about Andrew’s, Kate performed
a Google search, where she was taken to the store closest to her based on the
previous ad impressions she had been served at work. The geo-targeting helped
ensure that the specific store was in a convenient location, to make it more likely
that she could stop in for a visit.
Because Andrew’s faces heated competition from national retailers, such
as Lowe’s and Home Depot, it was crucial that their store show up near the top
of search results. Though Kate could have probably found it via organic (unpaid)
search, the fact that it was in a paid SEM position made it that much easier for
her to click – which is what initiated the conversion process.
Similarly, the chat and email feature also streamlined the process. Kate was able
to get her initial questions answered before visiting the store – which typically
experiences high customer volume on weekends. By enabling Kate and the
designer to communicate beforehand, the in-person sale could be closed more
quickly.
These features also helped make sure that one of Andrew’s Appliance’s
competitors did not “steal” Kate as a customer along any of the touchpoints.
Though the sales process for each business is different, this example shows the
need to think holistically when it comes to executing your marketing plan.
Meeting your customer’s
needs at all points
in the sales process
is important. When
it comes to executing
your marketing plan,
think holistically.
8. BEYOND THE CLICK-THROUGH | 6
USING TRACKING STRATEGIES FOR WOOING
WAVERING CUSTOMERS.
We’ve already established the need for a well-thought-out marketing plan,
which address touchpoints at every stage. But even in the best circumstances,
customers can and do “wander off” the sales path. Is it possible to convert
a customer who, for whatever reason, failed to complete the transaction? Through
tracking methodologies, it’s definitely possible to reach both “dropped” customers
and their look-a-likes.
1. Tweak the target audience:
If you find that sales for a concert are no longer coming from music sites, for
example, you might want to try running your ad on gossip sites, which attract
a large percentage of music lovers. Or, if your ad isn’t performing as well
on specific-interest pages, you might want to try running it on more general-
interest media (or vice versa). You may find that a fresh audience is more
receptive to your message, especially if you adjust the creative to better
appeal to them.
2. Don’t assume you know who you’re looking for:
Just because you’ve had great results with a particular audience in the past
doesn’t mean there aren’t emerging targets eager for your product. Predictive
modeling, made possible through ad tracking, allows you to analyze the users
who are driven to your site, and find “look-a-likes” (those matching the same
characteristics) to whom you can advertise. Pro tip: they may be different than
your brick-and-mortar customers, but if they’re buying your product/s, you
should be trying to reach them.
3. Change up your offer:
This is a good strategy for converting customers who have gone through
several stages in the purchase process, but for some reason, failed
to complete the transaction. Through dynamic retargeting (an ad strategy that
lets advertisers personalize every ad impression they serve to potential
customers by featuring products or content recently viewed by the user) you
can hit them up with a better deal, or offer a value-add when they complete
their purchase. Again, ad tracking allows you to know who these customers
are, and where their tipping point lies.
4. Ramp up what’s working:
If a particular approach emerges as effective, don’t hesitate to devote more
of your budget and impressions toward it. Ad tracking can tell you when it’s
time to pivot your marketing strategy. In these cases, you may also want
to regularly change up your advertising creative, offer and messaging – and
test these factors relentlessly – to make sure your campaign elements continue
to work as hard as they can.
5. Exclude existing customers:
Your ROI may be dropping because too many closed customers continue
to get your ads. Ad tracking technologies allow you to exclude those
customers, so you’re not wasting your money or, worse, irritating them with
a stream of ads for something they’ve just bought.
Even in the best
circumstances, customers
can and do “wander
off” the sales path. Woo
them back with tracking
strategies.
9. Contact us today for more information
206.464.2400 | seattletimes.com/mediakit
BEYOND THE CLICK-THROUGH | 7
IN CONCLUSION…
Though there’s nothing wrong with click-throughs, focusing too much on them
can mean missing out on many valuable opportunities. Ad tracking metrics are
best leveraged through careful analysis of multiple data points, so you can find
meaning behind the numbers. And like we showed in our Andrew’s Appliances
example, it’s entirely possible to reach, engage, nurture and close a customer
with hardly a click at all.
Ready to harness the power of digital advertising beyond the click-through? Turn to The Seattle Times Digital Plus for the most
comprehensive tool kit of innovative digital solutions. Our experts will work with you to create a customized advertising and marketing
campaign that reaches your ideal audience. Plus our experts will test and optimize your campaign to drive the highest possible
conversion rates.
The Seattle Times is a news media company that provides an array of media marketing solutions for local and national advertisers.
Our many vehicles connect you with your key audience targets.
For more information on any of the tools mentioned in this article, visit seattletimes.com/mediakit, call 206.464.2400 or email
advertising@seattletimes.com.
