Internet Marketing Dictionary
Measuring the response rate (clicks, leads, sales, etc.) to an advertising campaign.
Whether you're paying for advertising, or using free advertising,
it's essential to track your ads, and know
which ads are generating the desired response, and which aren't.
Once you locate the campaigns that aren't succeeding, you have the
option of either discontinuing that method of promotion (and
focusing on something else), or adjusting the campaign and trying
If you don't track, you won't know - and you'll continue wasting
time (and potentially money) on ineffective methods of promotion.
Another benefit of tracking is that it's possible to test particular
ideas and iteratively improve. Sometimes even a minor change in
your ad-copy can make a massive difference to the response rates.
Try a "split-run" - the same ad sent
to 2 different groups with slightly
- and you'll be able to see the exact
effect of individual changes. Keep good records, and you can
perform a series of incremental improvements, which
individually may not make a huge difference, but taken together,
can easily skyrocket your response rates and sales.
The traditional way to test ads (in offline media) is to encode
them with unique information, such as a "hidden" field
in the address (example: Department Number), and then count the
responses for each option.
While this approach still works, and will continue to be used
in offline media, on the Internet, the whole process can be
easily and cheaply automated. Simply include
a slightly different tracking URL or auto-responder address in
each of your different advertising messages, and the counting
Climbing the ladder of success is a step-by-step process, so
put your foot on the first rung, by starting to track your ads today.