Great article about basic analytics/social media stuff.
A very important metric for banner advertiesment is the CTR (click through rate). It is simply the number of clicks the ad generated divided by the number of total impressions. You can also think of it as the product of the probability of a user noticing the ad and the probability of the user being interested in the ad.
CTR = clicks / impressions = p(notice) · p(interested)
The current average CTR is around 0.09 % or 9 clicks per 10,000 impressions and has been declining for the past several years. What are the reasons for this? For one, the common banner locations are familiar to web users and are thus easy to ignore. There’s also the increased popularity of ad-blocking software.
The attitude of internet users is generally negative towards banner ads. This is caused by advertisers using more and more intrusive formats. These include annoying pop-ups and…
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