Click-Through Rate vs Action-Through Rate

A recent study conducted by behavioral targeting ad network, BlueLithium, yielded some interesting results concerning ads and the relevance of the context in which they are shown in. The study included over 400 million impressions and evaluated click-through rates as well as clicks that resulted in actual conversions, what they called “action-through rates.

The results of the study found that advertisements that were consistent with the context of the behavior had the highest click through rates. Meaning that people who visited golf sites were more likely to click on ads for golf clubs; which seems sensible.

The study found something perhaps more interesting though. The “action-through” rates or rates of actual conversions were higher when the advertisements were shown outside of the context of the behavior. Meaning the ads for golf clubs that were shown on cooking sites produced more conversions then those shown on actual golf sites.

Based on the finding of this study one would have to conclude that the proper placement of behaviorally targeted ads should be determined by the desired results. If increased traffic is the main goal, then ads should be shown on sites that are consistent with the behavior. If action or conversion is the desired result then ads should be shown in a different context than the behavior.