Digital advertising is a massive market, with companies spending over $250 billion each year. A decent amount of that money, however, goes to waste as businesses fail to set up ad tracking, which collects valuable and insightful user data from online ad campaigns. Not only do companies lose money, but they lose data since you can use ad tracking for ads on Google, Facebook, and other channels.
That’s why ad tracking services are becoming a must-have for companies looking to earn more (and learn more) from their online ads.
Learn more about the basics of ad tracking in the video below!
Are professional digital ad tracking services right for your business, though? Probably. Keep reading to learn about six practical reasons for companies, from small-to-midsized businesses (SMBs) to established enterprises, to use and invest in ad tracking services.
1. Build an ad campaign that connects with your audience
Ad tracking can provide your team with immense insight into your target audiences:
- And more
If your company doesn’t use ad tracking, you miss out on insights that can seriously shape your future campaigns. Instead, you’re creating and launching campaigns that you “think” will resonate with your audience. While that approach works for brand-new campaigns, it doesn’t work for the long term.
You’ll want to launch campaigns and then use your campaign data to refine your targeting and messaging. With stronger messaging and better targeting, your company can improve several critical advertising metrics, like click-through rate (CTR), cost-per-click (CPC), and conversion rate. These improvements can directly (and positively) impact your ad spend.
That’s why ad tracking services offer so much value to businesses.
2. Eliminate wasted ad spend across channels
“72% of businesses haven’t checked their ad campaigns in over a month”
Every month, businesses invest money into their ad campaigns. Many, however, don’t invest their time. A recent poll, for example, found that 72% of businesses haven’t checked their ad campaigns in over a month.
Failing to check-in and review your campaigns, as well as ad tracking, makes it easy for your business to waste its ad spend. Two common causes of wasted ad spend include:
- Paying for low-value clicks due to poor targeting
- Paying a higher CPC due to low ad scores and CTRs
Instead of paying for clicks from valuable and qualified users, companies see their ad budget spent on users that don’t contribute to their bottom line. With dedicated ad tracking services, your business can take a proactive approach and limit wasted ad spend. That’s because most ad tracking services (like services from WebFX) do more than just set up your ad tracking.
They also monitor and analyze the data — providing your team with actionable insights into your audience and ad campaigns. These insights can help your business improve your ad targeting, refine your ad copy, and increase your click-through and even conversion rates. All these changes can decrease your wasted ad spend and make you look good to company leaders.
3. Increase digital advertising’s ROI
Companies that use ad tracking (or even ad tracking services) also increase their return on investment (ROI) from advertising. Already, most businesses earn $2 for every $1 spent on pay-per-click (PPC) ads, but with ad tracking, you can do better. That’s because ad tracking can help you refine and enhance your campaign strategies.
“Use ad tracking data to learn more about your audience, and then incorporate that data into your ads’ targeting strategy, copy, and landing pages”
You can use your ad tracking data to learn more about your audience, and then incorporate that data into your ads’ targeting strategy, copy, and landing pages.
Even better, you can use tracking data to power remarketing campaigns, which can deliver even higher conversion rates than regular PPC ads. In fact, people who see remarketing ads are 70% more likely to convert. Increasing your digital ads ROI can create a ripple effect too.
A higher ROI, for example, can help your business hire a new staff member, invest in new equipment, and even expand your online marketing and advertising budget.
4. Get a bigger budget for online advertising
Ad tracking can also help your team earn a bigger budget for online advertising. Remember, when you invest in ad tracking services, you’re getting several benefits, including:
- Better ad targeting
- Lower ad spend waste
- Higher ROI
Those results can even help persuade your company leaders to increase the digital advertising budget. With a bigger ad spend, you can launch new campaigns, try different advertising channels, and increase budgets for campaigns that offer excellent returns. Your increased ad budget can compound, too, delivering an even higher ROI for your business.
5. Streamline ad tracking setup, check-ins, and maintenance
Time — it’s one of the core reasons why companies forget about ad tracking. Even if you understand the value of ad tracking, it’s challenging to find the time for it when you’re carrying several other responsibilities. That’s why ad tracking services offer so much value, especially to SMBs.
With digital ad tracking services, you can pass on several responsibilities, including:
- Setting up ad tracking
- Testing ad tracking
- Checking ad tracking data
- Analyzing ad tracking data
- Updating ad tracking
- And more
Plus, you get an instant expert in ad tracking. Whether you have questions or concerns, you can ask your dedicated account manager about your ad tracking settings, strategy, and findings. It’s a benefit that makes your life easier.
6. Unite marketing initiatives across channels
Your company can advertise across channels, from search to social to email. Without ad tracking, however, it’s difficult to coordinate these channel-specific strategies, as well as determine how they work together. With ad tracking, you can advertise to the same users across channels, which can lead to even better advertising results.
“If you want to get the best results from your ad campaigns, you need to make time for ad tracking, whether through ad tracking services or in-house management”
For example, with Facebook’s ad tracking code, called Facebook Pixel, your company can build audiences for Facebook ad campaigns based on your website’s visitors.
This kind of ad tracking allows for a multichannel approach to advertising your business online. It’s super useful for generating results, from clicks to conversions, too. Ad tracking is a must-have for companies advertising online.
If you want to get the best results from your ad campaigns, whether via Google Ads or Facebook advertising, you need to make time for ad tracking, whether through ad tracking services or in-house management.
FAQs about ad tracking
Learn more about ad tracking in this FAQ!
What is ad tracking?
Ad tracking describes the process of collecting user data from digital advertising campaigns via cookies, UTM parameters, and pixels. Advertisers can use and analyze tracking data to get actionable insight into user behaviors, preferences, and interests.
What are the types of ad tracking?
A few different types of ad tracking exist, including:
- Pixels: A tracking pixel is a microscopic image (it’s only 1px x 1 px) that appears on a user’s screen. You can place tracking pixels in emails, ads, or pages on your website. This type of ad tracking can help you learn about users, plus measure the number of views your ad receives.
- URLs: You can track ads with UTM codes, which you add to the end of a URL. Via the modified URL (and your analytics platform), you can see which ads generated which clicks or visits to a URL. Use a free tool, like Campaign URL Builder, to create your modified URL.
How do you set up ad tracking?
How you set up ad tracking will depend on the type of tracking. For example, if you’re looking to use Facebook pixel, then your setup will differ from if you’re using a cookie.
You can make sure you get the most value from ad tracking by reviewing the instructions for each type.
Tell me more about ad tracking services
If you’re curious to learn more about internet tracking services, WebFX can help. We’re a trusted PPC agency, as well as Google Premier Partner, with more than 25 years of experience. With our experienced team of more than 450 specialists, we can help your business set up ad tracking and get actionable insights from it.