Liqwid® Releases Whitepaper that Reveals Misunderstandings of Click Rate Metrics

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LIQWID® whitepaper on dayparting reveals that click rate metrics vary by time of day, day of week, frequency as well as length of viewability and must be measured against unique viewers, not impressions. Liqwid Dayparting uses viewer’s local time, which varies for each viewer, for content delivery rather than a single point of time applied to all viewers, based on server location.

We believe that utilizing an ad delivery method that incorporates the audience’s local time and measures clicks against unique viewers produces metrics that are a more meaningful indication of campaign performance.

LIQWID®, a brand of LeftsnRights, Inc., today released a whitepaper entitled “Online Dayparting Study Reveals Misunderstandings of Click Rate Metrics” that demonstrates the need to calculate click rates based on unique viewers, as opposed to impressions, to improve relevancy of click rate metrics to campaign performance.

Click rate, a primary metric in online advertising, is presented today as a ratio of clicks to impressions and applied to a campaign over its run time as a constant number. Further, click rates are a primary, decision-making factor in bidding and other distribution algorithms and are used to evaluate campaign performance in digital advertising. The click rate metric is misleading given that the number of impressions does not necessarily correlate with the number of viewers, the study contends.

“Direct response rates in online advertising should be measured as clicks per unique viewers and not as clicks per impressions or even viewable impressions.” Says Nikolai Mentchoukov, CEO of the company “After all, if 1,000 impressions have resulted in a single click, it is imperative to know whether 1,000 people viewed the ad once and only one of them clicked or if one individual clicked after viewing the ad 1,000 times or anywhere in between.”

As opposed to a single, constant number over the life of a campaign, the analysis shows that the click rate is a floating number that deviates up to 50% from the average during different parts of day depending on variables such as time of day, day of week, exposure time (how long the ad was viewable on the viewer’s screen) and frequency (the number of times an ad was viewable to the same viewer).

“We believe that utilizing an ad delivery method that incorporates the audience’s local time (using the viewers’ device) and measures clicks against unique viewers produces metrics that are a more meaningful indication of campaign performance,” says Mentchoukov.

The study also describes dayparting as the practice of dividing the day into parts so that content can be scheduled when the target audience is not only likely see it but also when it is the “right time” for the audience to engage. For example, a viewer may simply have no time to click on ads during a busy Monday morning.

Mentchoukov points out that online ad serving platforms that use “server time” to deliver ad content also fail to make dayparting scheduling as easy as it could be. “Liqwid has broken the time barrier and made actual dayparting a reality for online advertisers,” he says. “Currently, the advertiser has to use messy tables and time zone calculations to emulate dayparting. Since Liqwid uses the audience local time for ad deliveries to each individual viewer, scheduling is significantly easier. We only deliver ads to viewers that meet the actual scheduling, local time requirements of the campaign.”

Recent awards have recognized Liqwid technology as a disruptive agent in the current online advertising environment. Liqwid technology uses HTML5 responsive functionality to make content – be it text, images, video, social media, games, e-commerce, or apps – completely responsive in any environment. The technology also offers flexibility so that one campaign can run a combination of Flash ads and HTML5 ads to all types of websites (fixed-width, responsive, mobile) as long as the content format is compatible with the viewing device. Even fixed-sized graphics and content can seamlessly adapt to any web property, browser and device.

Publishers, agencies and advertisers have the freedom to design ad spaces and ad content with ultimate creativity, unbounded by standard sizes or fixed formats. Liqwid HTML5 ads are automatically indexed and ranked by search engines as standalone interactive content.

ABOUT LIQWID: Liqwid®, a brand of LeftsnRights, Inc., was founded by Nikolai Mentchoukov and Jim Rowan in 2010. The Liqwid advertising platform delivers fixed-sized and responsive ads to any responsive environment and creates new, viewable and premium inventory with the empty space outside of a content page. Ads automatically adapt to any ad size, location, device, operating system, and browser inside the content area or out. The company also features innovations like Viewer-Directed Placement™ and local dayparting to enhance the accuracy of measurable deliverables and scheduling. The company has offices in Salt Lake City, UT and Nevada. Visit http://bit.ly/13DfGYJ for a copy of the whitepaper. For more information about Liqwid technology, visit http://www.liqwid.com/ or contact Sarah Prater at 800-870-5006 or sp(at)liqwid(dot)com. The company’s Twitter feed is @LiqwidAdTech (#liqwidads).

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Sarah Prater
LIQWID
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