In Programmatic Advertising, Conversion Rate is one of the important key metrics to analyze and understand the effectiveness of the campaigns. A higher Conversion Rate is good for the ad campaigns. In this post, I will explain all about the Conversion Rate and optimization steps to improve the Conversion Rate.
Topics Covered:
What is Conversion Rate or Conversion Rate?
What is the formula to calculate Conversion Rate?
What is Conversion Rate Optimization in programmatic advertising?
How To Optimize To Improve The Conversion Rate Of A Programmatic Ad Campaigns?
Conclusion
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What is Conversion Rate?
Conversion Rate is the percentage that tells how much percent of users who clicked the ads did the desired conversion such as form submission, purchase, download, app download, etc on a client website.
| Campaign Name | Impressions | Clicks | Actions | Conversion Rate |
| Campaign A | 1000000 | 100 | 10 | 10% |
| Campaign B | 2000000 | 200 | 15 | 7.5% |
| Campaign C | 350000 | 300 | 22 | 7.34% |
Conversion Rate is one of the key metrics to measure the effectiveness of programmatic ad campaigns. By measuring this metric, you can optimize your campaign to improve conversions.
What is the formula to calculate the Conversion Rate?
Using this simple formula, you can calculate the Conversion Rate of your campaign.
Conversion Rate % = Total Actions/Total Clicks * 100
Example : Campaign A has received 100 clicks and 10 users only did an action. So, we can calculate the Conversion Rate as below.
Conversion Rate = Total Actions/Total Clicks * 100
Conversion Rate = 10/100 *100
Conversion Rate = 10%
What is Conversion Rate Optimization in programmatic advertising?
The process involved to improve the Conversion Rate is called “Conversion Rate Optimization”. As a programmatic campaign manager, you need to do optimization on various levels such as targeting, creative, landing page, etc to increase conversions.
How To Improve The Conversion Rate Of Programmatic Ad Campaigns?
You can access a wide range of inventories through programmatic advertising. So, you should refine your campaign at various levels in order to increase conversions. A very good strategy and continuous optimization will help you to achieve success. From my experience, I have shared a few techniques to improve the Conversion Rate. So, your ROI also increases when you implement these techniques.
- Be clear with the campaign objectives
You should be clear with your campaign objectives whether it’s a sign-up, download, checkout, purchase, etc. So that you can easily do campaign strategy and campaign optimization.
- Track Other Key Performance Indicators
You can track other key performance indicators to optimize the conversion based campaign. For example, if your campaign’s conversion point is “place order” you normally track the “place order” button. But, you can track other prior level key performance indicators like “Add To Cart” and “Check Out”. So that you can identify the users shown interest in your product but have not completed the final conversion.
Using this data, you can setup retargeting strategy more effectively to increase the conversion further.
- Target Right Audience
Successful programmatic campaigns rely on reaching the right audience with relevant messaging. So, you should do research and segmentation to identify your target audience’s interest, demo, and behavior.
- You can utilize first party and third party audiences or you can use combined audiences.
- You can narrow down your audience by utilizing demo and interest audiences.
- You can use contextual targeting to reach relevant audiences.
- Retargeting or Remarketing Strategy
Using remarketing strategy you can re engage the users who already showing interest in your product but did not convert. You can show more personalized ads to these users to increase the chance of conversion.
- Improve Audience Availability
Almost all programmatic ad platforms have the learning phase to perform towards a specific conversion points. But, enough audience and the most recent audience availability are very much important for the platform itself to perform well. So, your ad platform needs to collaborate with various data providers or data partners.
- Refine Creative Design
Refining creative design and message should be very important for improving conversion rate. So, always try various types of creatives to identify the best one. The creative design should be visually appealing and attention grabbing. Also, you need to convey your message such as offers, and special features very clearly and quickly to the users.
- Use Frequency Cap Effectively
By using a frequency cap more effectively you can reach more people and increase the conversion rate. So, identify the suitable frequency cap for your ad campaign. Analyze your campaign performance data and identify the frequency cap.
You can also minimize the impression wastage and reach more people using a frequency cap setting.
- Optimize Landing Page
Landing pages play an important role in conversion. Proper landing page design always helps to convert the clicks to conversion.
- The content available in the landing page should align with the message on ads.
- Minimum form filling, easy purchase options are also important for increasing conversions.
- Appealing landing page design also attracts users to do conversions.
- Optimize Campaign Regularly
Campaign optimization is very much important for increasing the conversion rate. Monitor the key performance indicators like click through rate, conversion rate, landing page bounce rate, etc to identify the best and poor performing tactics. So, you can optimize the poor performing targetings, creatives, etc.
- Try multiple platforms
Many programmatic ad platforms are available now. Each platform has different data providers, different targeting capabilities, and functions. So, run your ad campaigns on at least two different ad platforms and try different methods. Once you identify the best performing platform for your business then you can focus on that platform for your upcoming promotions.
Conclusion
Improving the conversion rate is much more important to increase the ROI of your ad campaign. Improving conversion rate includes various methods like strategy planning, analysis, optimization and continuous refining. Also, clear objectives, audience availability, create refining, A/B tests, and landing page optimization are also important for improving conversion rate. Continuous monitoring and optimization always help you to increase conversions.
Read More : What Causes a High CTR Campaign to Receive a Low Conversion Rate?
