Measuring ROI with Conversion Tracking

How do you know if your internet advertising campaign is paying off? Sure, it's easy to find out how much traffic is directed to your website from online ads. But is increasing traffic your real goal?

Wouldn’t it be more important for you to know how many visitors filled out your contact form, or bought something from your online store, after finding your site in an ad? With conversion tracking you can link meaningful results to each click-through from your ad campaign.

Here’s how it works: You start by defining actions that you want your website visitors to take, such as filling out your contact form, or making a purchase online. These actions can also be thought of as goals, assuming that the goal of your website is to generate leads and sales for your business. If a web visitor finds your site via an internet ad, and ends up taking the action that you've specified, it counts as a conversion. Now you have a better idea of the return on your ad campaign by looking at the number of conversions it generated.

This is just the tip of the iceberg; you can link different keyword sets to different goals to fine tune your campaign. For example, a wedding planner learns that more conversions are generated by ads that appear as a result of searches for ‘wedding’ and ‘dress’ versus any other combination of keywords. Just as keyword sets can refined, so can your goals.

You might want to know which sales person is getting the most conversions by visitors contacting him/her via the website. You can create different conversion goals for each of your sales reps.  If there is a notable discrepancy between them, you might want to take a closer look at the website’s content regarding each individual.

One of the most popular uses of conversion tracking is measuring the dollar amount of online sales resulting from an ad campaign. Now you can really track the ROI of your campaign by analyzing how much you’re spending on ads in direct comparison to the amount of sales they are generating.

With internet advertising expenditures projected to double over the next three years (from $40 billion to $80 billion, according to eWeek Magazine), you can count on conversion tracking to play a bigger role in following the trail of marketing dollars.


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