July 2, 2009

Click! So What?

Interview with Gian Fulgoni, Chairman, comScore,  from eMarketer web site

eMarketer: Have we moved away from the click as a proxy for online advertising effectiveness?

Gian Fulgoni: Publishers would be out of their minds to take an average click rate of 0.1% to an advertiser or an agency and say, “Here’s an indication of advertising effectiveness.” It’s not the right metric. It’s a really short-term view of how advertising works as a direct-response-oriented vehicle and not a branding-oriented one.

Let’s say I’m BMW. Do I want to reach a 20-year-old kid who can’t afford to buy a BMW today? The direct response people would say, “No, don’t target with the Internet.” They would target those people who are about to buy a car. That’s one view.

The branding people would say that at some point, the 20-year-old kid is going to buy a BMW or a Lexus or a Mercedes, so let’s make sure that he has the BMW brand value and equity in his head. Otherwise, he’s going to buy a Mercedes or a Lexus.

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