According to PR Agency founder Ronn Torossian, many companies, when they’re trying to track the performance of their digital advertising campaigns, aren’t doing it the right way. The most obvious signs of that are when all of the performance metrics are showing great results, but the actual campaign results aren’t what they’re supposed to be. That’s because it’s not simple for companies to track their conversions, as they’re always tied closely to the overall digital advertising campaign goals, although not many businesses realize that. That means, depending on those goals, the metrics that businesses need to keep track of are going to be different.
Ronn Torossian says if a company wants to track the conversion rate for its e-commerce sales, that’s relatively easy to do because companies can simply look at what the customers have purchased and how much they’ve spent trying to acquire that customer through advertising efforts. However, if a company wants to track conversion rates for free trials or consultations, it’s quite different from a clear sales number, and it usually means that the business hasn’t generated a return on its investment yet. That’s because when someone signs up for a free trial or a consultation, the company hasn’t generated any new revenue, which means the metrics that the business needs to keep track of are going to be different.
Ronn Torossian adds that when a business wants to create a brand new digital advertising campaign, the first step it needs to take is outlining all of the goals it wants to achieve with that campaign. In fact, this is also the most important step for most types of promotional campaigns, as generally, the metrics that companies need to track to understand the performance of their efforts need to be tied back to the overall goals of that campaign. For digital advertising campaigns specifically, that means companies need to define what the term “conversions” is going to mean for their campaigns. That can be anything from generating more sales, to reaching more customers, getting more sign-ups for free trials or the company’s newsletter, and more. The main idea that companies need to follow when they’re setting goals is tying their efforts directly to return on investment, and understanding that the conversions, as they’ve been defined for each campaign, won’t always generate more revenue for the business.