We've all asked ourselves the same question at some point while browsing Facebook, Linkedin, Google or Yahoo: "Who would seriously click on all of these ads?"
Marketers use online advertising for several reasons - it's a quick and simple way to target or engage an audience, gain brand awareness based on user browsing habits and search history, be present where the masses spend their time, and hopefully, convert some clicks into sales.
But recent research shows that what used to be the only way of marketing online back in the late 90s is becoming the least effective approach. With Facebook going public and their IPO plummeting since day 1, it's not surprising to read that 83% of U.S. Facebook users rarely or never click on a Facebook ad. When 85% of Facebook's income comes from their ads, and less than a quarter of their users click on them - marketers may begin to question whether it's worth the time and money afterall.
Even the ROI for using Google AdWords' has dwindled for many people. Their average click through rate (CTR) has dropped from 4% to under 2% in a decade. While both of these channels allow the option of Pay-Per Click (PPC) - where you do not pay a penny unless some action is taken on your advertisement, the amount of strong leads that come from advertising online are on the extreme low end. Some may argue that regardless of the poor statistics, you need to have a presence advertising to increase your search engine results page (SERP) and compete with others in the industry. But for $1-$10 a click at a $1,000/day budget, you could be developing fresher content, more attractive web pages, infographics, engaging videos, and additional communication that would deliver higher conversion rates and stronger leads.
What are your thoughts?