What Are Interactions in Digital Ads and Why They Matter

Published on 03 Jul 2024
By Perion Staff
Home Glossary What Are Interactions in Digital Ads and Why They Matter

In the early days of digital advertising, the “click” was the king of engagement measurements. If a user clicked on an ad, the campaign was a success; if they didn’t, it was a failure. However, with the evolution in mobile advertising and adding more channels, such as touchscreens, voice commands and immersive video, the click is not enough

Understanding interactions helps marketers get insights about how the audience responds to the creatives, placement, and messaging. Keep reading to explore the types of interactions, measurement methods, and strategies to maximize user engagement across digital channels. 

What Are Interactions in Digital Advertising?

In the simplest terms, an interaction is any intentional action a user takes with an advertisement, not including seeing it. While an impression counts every time an ad is displayed on a screen, an interaction signifies that the user has “leaned in”. This could range from expanding a high-impact display ad to reveal a hidden menu to matching a video for a specific duration that indicates genuine interest. 

 

The definition of an interaction expands with the evolution of hardware. On a desktop, an interaction might be a mouse-over that triggers an animation or a dwell over a specific product feature. On a smartphone, a tap, or a swipe through a product carousel, or a pinch-to-zoom action. Advanced scenarios include interactive 3D product models where users can rotate a piece of merchandise to see it from every angle. 

Why Interactions Matter for Digital Ad Campaign Performance 

Interactions serve as a bridge between awareness and conversion. They are the primary indicators of active attention. In a market plagued with “banner blindness”, where users instinctively ignore standard placements, interaction data proves that your ad creative has broken through the noise. When a user interacts, they are internalizing your brand’s message, turning a passive view into an active one that increases brand recall. 

The Role of Interactions in Programmatic Advertising

In digital advertising, interactions fuel optimization algorithms. Here’s how this works: demand-side platforms use machine learning to identify patterns in engagement that humans might miss. When an ad receives high levels of interaction, programmatic ad tools can automatically shift the budget toward similar placements, specific demographics, or certain times of the day (dayparting) where engagement is peaking. 

 

This process creates an optimizing feedback loop. For example, if the data shows that users on mobile devices interact more with video content during evening hours, the programmatic engine will prioritize bidding on those slots. Therefore, your advertising budget is spent on impressions that have a higher likelihood of turning into a conversation. Without tracking interactions, a programmatic strategy is flying blind, relying on surface-level metrics that may not reflect the inventory’s true quality. 

How Interactions Influence ROI and Conversions

It is a common misconception that interactions are vanity metrics. On the contrary, they are leading indicators of Return on Investment (ROI). A user rarely buys a high-ticket item or signs up for a complex service on the very first touchpoint. By measuring interactions, marketers can track the “micro-conversions” that lead to the final sale. 

 

For instance, a user who interacts with an augmented reality (AR) ad to try on a pair of glasses or see how a sofa looks in their living room is significantly more likely to convert later via a retargeting ad than a user who never interacted at all. A perfect example is the Visit Savannah AI-Powered Experience, where a generative AI chatbot was integrated directly into Perion’s high-impact ad formats. This innovative approach achieved a 14% lift in user engagement. 

Interaction Rate vs. Click-Through Rate ( CTR)

While often confused with each other, these two metrics measure different levels of intent and require different strategic approaches.

 

Metric Definition Purpose
CTR The percentage of people who clicked a link to a landing page. Measures direct traffic and immediate intent to buy/learn more.
Interaction Rate The percentage of people who engaged with the ad unit itself. Measures brand affinity, creative effectiveness, and “dwell time.”

 

The Click-Through Rate (CTR) is a binary metric; a user either clicks the link to your landing page or they don’t. This is excellent for measuring direct traffic and immediate intent to buy. However, it fails to capture the value of users who spent thirty seconds engaging with your brand within the ad unit itself but weren’t ready to leave the page they were currently reading. 

 

The Interaction Rate (IR) measures the percentage of people who engaged with the ad unit, such as playing a game, clicking a “more info” tab, or unmuting a video. This distinction is vital because a high-impact video ad might have a low CTR, but have a massive interaction rate. 

Types of Digital Ad Interactions

You should understand the different ways users “talk back” to your ads. Clicks and taps are the most common, but there is a whole range of reactions and interactions. In rich media, we see a heavy reliance on dwell time, which tracks how long a user’s cursor or finger stayed active within the ad boundaries. This is a massive indicator of interest that doesn’t require a single click. 

 

Other interactions include:

  • ideo completions of quartiles, which show exactly where a user lost interest in your story. 
  • Expansion interactions, where an ad grows to fill a larger portion of the screen, indicate a high level of curiosity. 
  • Social interactions, such as likes or shares on sponsored content, provide a secondary layer of reach, as the interaction itself becomes a signal to the user’s network. 

How to Measure Interactions in Digital Advertising

Measuring interactions requires moving beyond the standard tracking pixel. Marketers must implement event tracking to log specific behaviors within the ad unit. This is often done using JavaScript-based tags that listen to triggers, such as user scrolling to a specific part of an ad or clicking a non-link element. The interaction rate is then calculated by dividing the total number of interactions by the total number of impressions, then multiplying by 100. 

 

Interaction rate equals total interactions times 100 divided by total impressions

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