Testing and Tracking
to Maximize Profits
Ad Tracking, How important is it?
It can be the very thing that makes or breaks your business.
Businesses have to know what is going on financially. Finding ways to track various types of information, is always a challenge. Online business requires some special tools. One of the most important is a good Ad Tracker.
There are two types of ad trackers:
-
CGI Script, which you buy outright and install on your server. It does require some specialized knowledge to set up. May cost extra for professional installation.
The CGI ad tracker is controlled by you on your site. If, there are any updates, you may have to re-install. You don't have to worry about this type going out of business and leaving you in a mess.
-
Onsite ad trackers, is on a third party website and require rental fees. No installation is required, sign up, pay fees, and start using.
The onsite ad trackers are just a matter of following instructions. Because, it is a third party site, they have complete control. They can make changes at any time and you have no control.
Both can be very simple, or pretty complex, depending on what you want to accomplish. Today, you can find some that are very good at tracking just about anything about your site,or customer. Costs vary with capability.
Things Ad Trackers can do:
1. Keep track of hits on various pages on your site.
2. Checks for return visitors.
3. Determine page where a visitor leaves site.
4. Determine which pages are most, or least, productive on your site.
5. Track Visitors even after leaving site.
6. Track actions related to site (sales, downloads, subscribers, affiliates).
7. Track ad campaigns through various promotions and vendors.
8. Testing of various campaigns.
9. Statistically determine various aspects about your website. You need five different pieces of data to begin making informed decisions.
COA...Cost of advertising
POP...Price of product
PFT...Profit(price - expences)
TNH...Total number hits
TNS...Total number sales
Data determined from these formulas:
TR...Total Revenue = TNS * POP
TP...Total Profit = TNS * PFT
Conversion Rate = TNH / TNS
Return On Ads = TR / COA
Return On Investment = TP / COA
Cost Per Click = COA / TNH
Cost Per Sale = TR / TNS
Clicks Per Sale = TNH / TNS
Are any of these things important?
You bet they are, for a business to succeed, you have to know what is going on. Adjusting is a way of life in todays world, testing and more testing. Ad Trackers, if used properly, can be used for improving business decisions and to maximize your profit. With proper testing and ad tracking tools; you can determine conversion rates and that more than anything impacts your bottom line. Every successful marketer I know uses these tools to determine the best conversion methods.
