Splashcasts Perform 75x Better Than Banner Ads
Posted on March 18, 2008
Posted by Mike Berkley
We recently completed an analysis on the average click-through rate (CTR) of a typical splashcast. It’s about 3%. That means that every 33 times a splashcast is loaded on a web page, a user interacts with it (watches a video, plays a game, enters the chat room, etc…).
SplashCast currently serves up about 1.3 million splashcasts every day… so this makes for a bundle of interactivity.
So how does this compare to conventional advertising methods in social networks? Quite well, actually. [Note: we’re allowed to ask soft-ball questions on our own blog]
In fact, splashcasts perform about 75 times better than banner ads on Facebook, using CTR as the metric.
On average, Facebook banner ads garner an underwhelming 0.04% CTR. Lots has been written about this. All you need to do is a Google search on “click through rate facebook“, you will get story after story about the under-performance of banner ads on Facebook. Intererstingly, while MySpace has a similar problem, Google search results for “click through rate myspace” actually returns more unflattering Facebook stories than unflattering MySpace stories. Hmmmm, very innnnnteresting.
All Google conspiracy-theory-paranoia aside, the fact is that for companies trying to engage teens and young adults where they live and socialize online, banner ads aren’t getting the job done, while social marketing solutions like SplashCast are demonstrating massively better results.
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SplashCast is a leading provider of social marketing solutions that gives brands direct access to teens and young adults where they live: social networks.
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I just stopped by your blog and thought I would say hello. I like your site design. Looking forward to reading more down the road.
Robert Michel
[…] Matt McGee wrote an interesting post today onHere’s a quick excerptAll Google conspiracy-theory-paranoia aside, the fact is that for companies trying to engage teens and young adults where they live and socialize online, banner ads aren’t getting the job done, while social marketing solutions like … […]
[…] SplashCast performs 75 times better than banner ads Mike Berkley writes “We recently completed an analysis on the average click-through rate (CTR) of a typical splashcast. It’s about 3%. That means that every 33 times a splashcast is loaded on a web page, a user interacts with it.” […]
[…] SplashCast’s video-based social advertisements on average receive click-through-rates that are about 75 times higher than typical banner advertisements used on MySpace, Facebook or other social network […]
great job on the new funding!
[…] However, having a direct channel to the customer is pretty useful in this day and age of abysmal click-through rates on the social networks where kids spend all their time. Berkley claims his ads receive 3 percent CTRs, quite a ways up from the decimals you’ll see on Facebook. […]
[…] NewTeeVee’s Liz Gannes had this take on SplashCast’s “social advertising” and its position against traditional online advertising media: [H]aving a direct channel to the customer is pretty useful in this day and age of abysmal click-through rates on the social networks where kids spend all their time. Berkley claims his ads receive 3 percent CTRs, quite a ways up from the decimals you’ll see for banner ads on Facebook. […]
[…] Originally posted here: Splashcasts Perform 75x Better Than Banner Ads […]
[…] Earlier this week, Portland-based SplashCast revealed that the company’s Facebook widgets for popular recording artists were outperforming traditional online advertisements. Well, that might be an understatement. SplashCast pegs that performance at “75 times better than the clickthrough rate of traditional banner ads.” […]
Your reporting is misleading! A “Click-through,” as defined by the IAB is, “the action of following a link […] to another Web site […].” It sounds as if you’re discussing “click-within” rates (similarly defined as actions “that allow the user to ‘drill down’ and click, while remaining in the advertisement, not leaving the site on which they are residing”). If you are comparing your flash media player to a traditional display ad, then you should be aware that savvy interactive advertisers will want to discuss both metrics.
As a courtesy, I’ve included a link to the IAB Glossary…
http://www.iab.net/media/file/interactive-glossary.pdf
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