How does conversion tracking work and why is it important for your marketing?

Conversion tracking allows you to measure how often and based on which measures certain marketing goals are achieved. Learn in this article how Conversion-Tracking works and why it is particularly suitable for use in digital advertising campaigns.

Conversions and Conversion-Tracking

Valuable actions for your company are called conversions. A conversion can be, for example, subscribing to a newsletter, downloading an app or buying a product.

Conversion tracking helps you to measure the defined conversions and assign them to specific sources. For example, you can find out whether a conversion resulted from a digital advertising campaign, a social media post or a direct visit to your website.

How Conversion Tracking works

To start with conversion tracking, so-called conversion actions must be defined. Conversion actions can be created in analytics tools such as Google Analytics or, in relation to digital advertising campaigns, on all major advertising platforms.

As soon as a defined action such as subscribing to a newsletter is performed, the conversion action must be triggered to record the conversion. For this purpose, a code snippet (also called conversion tag) is stored on the website. The recorded conversion data can then be evaluated accordingly in the Analytics Tool or in the advertising networks. The data helps you to recognize if and how you achieve your goals.

Conversion-Tracking in digitalen Werbekampagnen

Digital advertising campaigns often have concrete goals. If possible, you should record these goals with conversion tracking to benefit from advantages in the following areas:

Cost per Action (CPA)
Thanks to conversion tracking, you can find out how much a conversion costs you in each advertising campaign. By also defining a monetary amount as a conversion value for your conversion campaign, you can continuously measure and improve the return on investment (ROI).

A/B Tests
Conversion tracking tells you how many conversions are generated for which advertising channels, target audiences, placements or ads. This information is interesting for A/B tests, e.g. to focus your campaign on well-functioning ads.

Conversion optimized campaigns
Many advertising networks offer the possibility to optimize a campaign for the defined conversion action. For this purpose, the conversion tracking data is used to play out the ads. If possible, the ads are displayed to people who, based on the available data, fit well with people who have already triggered a conversion. This often leads to better conversion rates and thus to better results from the campaign.

Conversion-Tracking in adhook

adhook helps you as your assistant for digital ads to create and evaluate conversion optimized campaigns - on Google, Facebook, Instagram, LinkedIn and Twitter.

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