Digital Advertising to Track Sales Not Clicks

tracking sales

Marketing budgets are rising every year. According to the latest IPA Bellwether, 8% of marketing executives said budgets had increased recently. And the digital marketing budgets is one of the top fields that have seen a notable increase in investment.

The advertising industry is benefiting thanks to this bonanza. All these increasingly large budgets pushed into digital advertising, companies are starting to analyze and understand how this sort of approach will impact their business as well as looking for ways to profit this investment and multiply if possible.

Old Classic Metrics

What are the most relevant metrics in digital advertising that companies are using to measure the impact of their marketing budgets? Over the last few years,   impressions and click-through rates have been the most effective indicators of a successful campaign by companies and agencies. But since digital advertising has become a solid and crucial platform for a customers acquisition. According to Felix, digital marketing consultant at Marketing Expertus, ‘I wouldn’t go as far as to say that the click-through rate is not a measure of success any longer – but I can certainly state that there must be many other indicators that label a campaign as effective’.

Companies and marketers are nowadays going beyond those metrics to understand the impact of their digital advertising campaigns. Sales and business performance, in general, are the main metrics to be measured in the modern digital marketing world – those that genuinely impact the business – conversion rate, sales, brand awareness, social listening and customer engagement are to be the most relevant metrics in the future of marketing.

Connecting Platforms with Sales and Leads

These metrics, however, are not as easy to measure and track as and every company wants to understand whether their advertising investment is being profitable by monitoring a return on investment. In order to demonstrate ROI, advertising manager and agencies will inevitably shift to platforms hat not only drive performance but allow them to track tangible outcomes like sales, conversions and return-visitor sales.

Turning site into a sort fo eCommerce style or adding measurable web app features to them would be the most obvious choices,  and understanding rich insightful metrics such as average duration session and return visitors will provide marketers with more relevant information about consumers behaviour. And the more companies know about their customers, the better they can understand and interact with them.

But very importantly, eCommerce sites also allow brands to make the critical link between their marketing activity and their sales. For example, along with measuring audience engagement, brands can track the resulting sales directly.

A Re-Education in Measurement

Investing in digital advertising is very powerful for many companies regardless of their size, for example, Millennial Studios, a video production company, he has run a successful PPC campaign (tips here) for wedding and corporate video production services. Measuring its results concisely is becoming a top priority in marketing experts and business owners who run their own campaigns. But many marketers, as well as companies, show resistant to changes and their measurement procedures are still the same as years ago.

However relying on all metrics such as impressions and click through rate alone is not the most accurate way, digital consumers are very savvy and although they might not purchase anything in their first click as they are very likely to shop around, they might come back to your site and make a conversion which it will not be registered by the Google Ads tracker.

Instead of relying on the same old data and metrics, it’s time for marketers to shift metrics and approaches and consider more relevant metrics such as return visitors, brand awareness and social listening to measure the impact of their marketing spend.

Brands need to understand the quality and relevancy of these metrics to fully analyze if those will be relevant to their goals and will actually show the effectiveness and profitability of their campaigns. It should be their top priority to reduce reliance on old figures or those ones which measure campaign effectiveness but leave empty whether they are raising brand awareness and increases. It is ultimately in the hand of platforms and publishers to develop tools and apps that actually deliver more advanced metrics.

Metrics of the Future and How They Are Relevant

Metrics such as CPC, impression… are still relevant (Unbounce questions this) and matter to measure the quality of your advertising campaign however this is not as effective to measure your return on investment or how profitable and campaign, conversion rate and modern metrics such as brand awareness, customer journey are the ones which will fill in those gaps and will help advertising managers fully understand how profitable a campaign is.



James Williams
James is our Lead Content Publisher here at Feeds Portal. He has worked with many top websites over the years, including BuzzFeed.

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