Roughly two-thirds of the 314 global agency & brand decision-makers interviewed by Forrester & TapAd recently agreed that, “there’s more pressure than ever to prove the ROI or business performance of marketing activities.” In order for the time spent conceptualizing and planning a cohesive marketing strategy to be worthwhile, advertisers need the ability to clearly define and track ROAS, or return on ad spend.
TRACKING ROAS AS A CAMPAIGN SUCCESS METRIC
Simpli.fi’s approach to programmatic e-commerce allows for a multitude of ways to target a highly-qualified audience, and ultimately, to clearly define and accurately assess a true return on investment. One of the methods to track ROAS that we often see the highest rate of success when advertisers place a pixel, or small line of code, on their website wherever the ‘conversion’ occurs (i.e., checkout, sign-up, confirmation, or “thank you” page). This process allows Simpli.fi to report both the number of conversions and the cart value, when applicable.
Tracking the number of online conversions provides some insight into the success of a campaign; however, for advertisers with a variety of purchase values, the conversion rate misses an important side of the story: how much revenue did those conversions generate?
For example, let’s say we sell t-shirts. If one shopper buys a $20 t-shirt, and another buys $100 worth of t-shirts, a conversion count or conversion rate won’t provide the purchase data element, which provides a more granular look into the success of the campaign. For ease of explanation, let’s say we spent $30 on Simpli.fi’s advertising resulting in those two purchases ($20 and $100). The difference between these attribution models would look like this:
To clarify, tracking the number of conversions and the rate at which users convert remains important. However, reporting on the revenue generated from our advertising efforts, both in real-time or scheduled to your inbox via our in-house report center, allows our advertisers to quickly and accurately analyze the success of their campaigns by looking at the bottom line. Our advanced approach to programmatic e-commerce allows for clarity behind the quality of the audience our ads drive to your advertiser’s website.
HOW TRANSACTION VALUE REPORTING PROMOTES HEALTHIER CAMPAIGNS
Furthermore, our ability to process this information in real-time brings our advertisers success by using the data to positively impact our bidding strategies and campaign optimizations. This allows our team to make the necessary adjustments to cut down on wasted impressions, while we focus on delivering ads where successful engagement occurs, which ultimately improves the return on investment when advertising with Simpli.fi.
When we optimize campaigns we do so at the data-element level. This means our transparency in the way we report informs with clarity the way we target, bid, and optimize. We can pivot in real-time by utilizing campaign-specific insights from individual data elements like contextual content, keywords searched, browsing behavior, domains visits, and apps utilized. Additionally, our in-house report center solves the need for additional reporting elements when seeking to summarize a campaign’s performance with a true return on investment metric. This helps drastically reduce the time and effort spent on consolidating reporting.
To better understand how online advertisers utilize Simpli.fi to generate positive returns for their programmatic e-commerce campaigns, check out this real-world example of a men’s apparel direct-to-consumer brand we’ve partnered with since 2020.
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