[Must Read] The Law of Shitty Clickthroughs
One of my favourite ever marketing articles is The Law Of Shitty Clickthroughs by Andrew Chen.
For those who haven't read it, it goes on to explain how using the same strategy time and time again will lead to a declining rate of return.
When the first banner ad debuted on HotWired in 1994, it received click through rates (CTR) of 78%!
Today, in Australia is is just 0.08% (Source: Google's Display Benchmark tool). That's a huge decline.
Andrew then goes on to apply the Law Of Shitty Clickthroughs to email marketing open rates, which have also declined over time.
There are three reasons that this decline is experienced by ALL new developments in advertising:
- Novelty - Novelty is great, the first time you experience it, but the effects wear off over time. The first time you saw Chris from Chris and Marie's plant farm in a tutu, it might have been funny, the five hundredth time, it's just sad.
- First To Market Never Lasts - If you have a successful idea, your competitors will copy you. You need to keep coming up with new and innovative ideas to sustain any competitive advantage.
- More scale means less qualified customers - Early Adaptors and innovators are the first to buy any new product or service and require less convincing than the majority, late adaptors and laggards. The problem is, early adaptors and innovators want to buy your product, and require a lot less convincing than the majority, or laggards, who are more cautious and prone to waiting until the product or service has been tested.
For marketers, advertisers and businesses, this means that we must continually try new things, embrace new marketing and advertising channels and never ever get complacent.