Fuelling the growth of your business with marketing is a smart move, but you must know how to effectively track this performance to evaluate areas of development and optimisation. Digital ad spend has grown over the last 5 years. In 2024, it is expected to reach more than $520 billion.
What Is Conversion Tracking?
To put it simply, conversion tracking is the act of measuring the impact of your digital marketing efforts by evaluating what actions were taken after a click to an ad. Did the user bounce immediately off the website? Could this mean that your targeting needs to be revisited? Or did the user arrive and make an immediate purchase? How can you capitalise on this with your campaign strategy to ensure good ROAS?
You need to have a defined goal in mind whether it be sales, leads or downloads. Once decided, you can begin assessing whether ads are effective in meeting those objectives.
Tracking Solutions
Google Analytics is the most commonly used tracking method. It poses many hand features from demographic to acquisition to engagement reports. GA4’s value increases with the time you spend advertising, as it begins to develop a truer reflection of how users engage with your business. This data works together allowing you to find opportunities for optimisation, idea generation and understanding the interconnectivity within your business.
Conversions typically fall into one of three categories. Sales, leads or other (calls, downloads etc). These should remain as your primary conversion actions as they drive the most value.
It’s also important to set up secondary conversion actions to help you further evaluate how well ads are performing. Specific examples include add to carts, page views, calls to clicks. This demonstrates whether the user lost interest after browsing your site, opening an opportunity for a remarketing campaign to consolidate their purchase decision.
How To Utilise Tracking For Optimisation
Learn Customer Acquisition Costs
Profitability is the major driver for every business's growth, but it doesn’t always have to be of monetary value based on the nature of your business. This is where customer acquisition may differ, so it’s important to learn the difference in benchmarks between industries.
Understanding Customer Behaviour
Customer behaviour changes depending on platforms. For example, customers use social media to develop their understanding and nurture their desire. This is where the importance of organic marketing comes in to warm up these upper funnel users. On the other hand, PPC marketing with Google Ads or Facebook Ads pulls the user in by proposing value via copy, creative or unique offers - but this will only be as successful as your audience targeting is. As a result, this is where organic users can feed into paid marketing where they can be targeted with ads.
What Metrics Should I Track?
Bounce Rate
Bounce rate refers to the percentage of people who visited a website, but left immediately. Avoid a high bounce rate, especially from paid ads as you’re wasting your valuable ad spend!
Conversion Rate
Conversion rate is made up of equal parts from both your paid ad and landing page experience which presents some scope for some web development. This involves dividing the number of conversions an ad gets by the total number of views and representing this as a percentage.
Cost Per Acquisition
Cost per acquisition (CPA) is so important for all marketers! As we touched on earlier, it changes depending on your industry but overall refers to the amount of money spent on converting one single customer.
To learn more how you can improve your marketing get in touch with mira marketing today! Allow us to audit your account for FREE so you can maximise results from your digital marketing efforts.