Closing The Loop Between Marketing & Revenue
eCommerce digital media advertising success is (or at least should be) measured by one thing, and one thing only- revenue generation.
In order to measure key metrics that eCommerce companies need to run profitable social media advertising campaigns, they need to make sure that conversion tracking is not only set up, but set up accurately. Creating, launching, and managing high performing digital media campaigns all ties back to this fundamental piece. Below are a few tips when it comes to conversion tracking for eCommerce revenue generation.
What Is Conversion Tracking?
Conversion tracking codes enable businesses to measure and track how consumers are interacting with digital marketing, and more importantly, whether eCommerce companies are “converting” a site visitor into an actual paying customer. It provides objective benchmarking of metrics that actually affect bottom-line revenue.
Conversion tracking produces clean data that shows direct results of marketing campaigns and opens up new opportunities for growth and optimization.
How Conversion Tracking Helps Generate Revenue
Without conversion tracking in place, any decision eCommerce companies make regarding advertising campaigns are a shot in the dark. Having conversion tracking setup properly will provide measurable results on campaign performance and open up new opportunities for future strategy, growth, and optimization.
Below are a few examples of how conversion tracking can help generate more bottom line revenue.
Track Return On Advertising Spend (ROAS): When set up properly, conversion tracking will track campaign ROAS, thus objectively revealing which advertising efforts are generating more revenue than they are costing in marketing spend.
Benchmark Cost-Per-Acquisition (CPA): Setting up conversion tracking will allow eCommerce companies to establish a clean cost-per-acquisition (CPA) that eCommerce companies can then focus on walking down by campaign optimization and cleaner data.
When conversion tracking is properly set up, you can track which campaigns are generating a higher ROAS for yourself or clients. With this information, one can pause lower returning campaigns and reallocate budget to those that are generating a greater return for every dollar spent.
Identify Top-Performing Copy & Creatives: Conversion tracking attributes credit to specific ads for online purchases, so it’s clear to determine which creatives and copy are generating more revenue. This knowledge reveals critical insights into what value propositions and brand assets resonate most with purchasers.
In this example, we split tested two different creatives for a client to see which one generated a higher ROAS. Because we had conversion tracking set up, we were able to identify the top performing creative at the end of the test.
Optimize Campaign Setup: With conversion tracking properly setup, eCommerce companies are able to optimize campaigns, audiences, and placements for conversions which will increase bottom line revenue.
In another example, after reviewing these campaign results, we were able to break down the key metrics by placement and device. Due to the data we received, we relaunched the same campaign strictly on Facebook Mobile Newsfeed for the client in efforts to optimize ROAS.
Conversion tracking for eCommerce revenue generation is essential to collecting meaningful data that can not only help inform digital advertising decisions, but overall business strategy for eCommerce companies.
Want to learn more about setting up accurate conversion tracking for your eCommerce company? Untitled would love to help.