By Ivana Giardi
Conversion is the most important metric of the online
advertising. The term conversion refers to converting
from leads to customers or users of your service.
So if someone clicks on your ad and buys something
on your site that click has been converted into a
sale.
Conversion tracking is extremely useful because it
enables you to accurately track how many clicks from
your ads resulted in sales which will help you to
determine your return on investment (ROI).
Advertising should be considered as an investment
into your business growth. For an investment to be
effective, it needs to generate measurable positive
results -- without positive ROI, advertising represents
only cost to your business.
With a proper conversion tracking in place, you will
be able to track your sales and calculate your ROI.
There are many easy to use, affordable tracking tools
to monitor and analyze your campaigns performance.
(Apex Pacific, for instance, offers Dynamic
Site Stats, a Web-based tool that monitors
the performance of your website in real time and helps
you improve the effectiveness of your online marketing
campaigns.)
By using website tracking tools and their reports,
you can accurately track which ads and keywords result
in sales. This will help you to determine and eliminate
poorly performing advertising campaigns. It also tells
which ad campaigns you should focus your energy and
resources on to further perfect their performance.
For example, Live Cost Analysis
report available in Dynamic
Site Stats, provides you real-time insight
into the effectiveness of your paid search (PPC) campaigns.
It pulls together dynamic price information from the
leading PPC search engines (Google, Overture, FindWhat,
Espotting, etc) with the revenue earned on your website
so you can measure the profitability of each keyword.
Figure 1 – Live Cost Analysis
report summarizing the activity of PPC campaigns
Live Cost Analysis offers you clear, concise and actionable
reports on which campaigns, keywords and search phrases
are bringing you the most new customers, and which
keywords are the most effective at driving qualified
customers.
Figure 2 – Live
Cost Analysis report summarizing the activity of a
specific PPC campaign (Overture)
Analyzing statistics from the Life Cost Analysis reports
will give you the information you need to improve
your ROAS (return on advertising spend).
Reports enable you to see a number of actions and
cost per action (CPA), which will
help to evaluate your campaign and/or keywords performance.
Improving the conversion performance of campaigns
and keywords that are returning a lower overall ROAS
will have a positive impact on the effectiveness of
your website and the value of your product offerings
as well.
In conclusion, conversion tracking reports offer
great help to effectively monitor and analyze ad campaigns
and keywords performance. This way you are able easily
identify areas of low performance and optimize these
accordingly to achieve the maximum ROI of your advertising
budget.
