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That lead generated through your banner ad was probably from a consumer between the ages of 25-44, with a household income under $40,000. This demographic accounted for 50% of all banner-ad clicks, despite comprising only 6% of the population, according to a new study.
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Comments
Half of all CPC revenue is derived from a group of people with virtually zero disposable income... Looks like CPA is the way to go then.
I agree that CPA is a better model, but someone made a comment on an earlier post (this topic has been posted on before) that maybe you can't just look at the aggregate numbers to determine the value of CPC. For example, I just visited the NYtimes.com website and I doubt many lower income males are clicking on the St. Regis ads. On the other hand, there are plenty of "make $1,000,000 in 24 hours" ads randomly scattered throughout the web. I bet they're getting plenty of clicks and being counted in this study. To summarize, if you have a crappy banner ad strategy, you'll have crappy results.