Don’t Work Your Ass Off for the Algorithm – Teach the Algorithm to Work for You 💡

Advertising platforms are increasingly relying on automated bidding models, powered by an expanding array of data points. This shift makes manual campaign management less effective, forcing marketers to move towards automated bidding models.

Anni S.
12/04/2024 10:21 AM

The core of modern advertising technology is automation. These ad platform algorithms are designed to utilize thousands of data points and optimize campaign performance, in the best case, grinding sales for you even while you sleep. Utilizing these algorithms in the best possible way enables efficient business growth, as it reduces the need for increased manpower to scale operations.

Table Of Contents:

  1. Performance of Your Paid Ads = Conversion Data You Send to Ad Platforms
  2. Typical Challenges in Conversion Tracking
  3. Beyond Typical Conversion Tracking – The Fine-Tuning Part
  4. It Doesn’t Have to Be Too Difficult
  5. Conclusion
  6. TL;DR: Just Give Me the Essentials

Performance of Your Paid Ads = Conversion Data You Send to Ad Platforms

Success in this automated environment comes down to the quality of data provided to these ad platforms. To truly harness the power of automation, advertisers must feed them the best possible fuel — both in terms of quantity and quality.

"Garbage in, garbage out" holds particularly true here: poor quality data or wrong conversion points results in ineffective, often misleading campaign outcomes, and grey hair to us marketers.

Typical Challenges in Conversion Tracking

Conversion tracking is pivotal, naturally, in measuring the effectiveness of paid advertising BUT ALSO in teaching the algorithms to bring you the most optimal results that matter for your business. Yet it comes with its own set of challenges:

  • Current setup is bleeding data:

Most advertisers are still fully relying on client-side tracking setups. However, this comes with a set of challenges: Apple ITP sets harsh limitations on client-side tracking in Apple devices, 3rd party cookies are finally being deprecated also on Google Chrome, the increased adoption of Ad Blocker techniques, and a set of implementation-related challenges like Cookie Consent Management, Consent Mode v2, Enhanced Conversions/Advanced Matching technologies and so forth.

Usually, advertisers are losing from 20% to even 60% of conversion data when conversion tracking is fully reliant on client-side scripts.

Meta reports an average of +22% increase in measured conversions when adding Conversions API vs. tracking with Pixel alone. On top of this, they see an average of -8% decrease in CPA due to increased signals given to the algorithm.

  • Technical Limitations:

Quite often we run into cases where the tools used within an advertiser's tech stack, such as lead or purchase forms, may not fully support conversion tracking with traditional tracking pixels. This can result in partial or, in worst cases, complete loss of crucial conversion data.

  • Offline Sales Processes:

Many businesses have sales processes that include offline elements, such as qualifying leads or closing sales post-web sessions. Optimizing ads for actual business outcomes in these scenarios requires innovative tracking solutions that bridge the gap between online activity and offline results, as traditional client-side, pixel-based conversion tracking doesn’t extend to offline events.

  • Profit Data Optimization:

While optimizing bids based on profit data instead of revenue data can significantly enhance ad performance, it risks exposing sensitive profit margins if tracked using traditional client-side tracking methods. Advertisers need to strike a balance between leveraging profit data for optimization and maintaining confidentiality (so, communicating profit data securely with server-to-server communication instead of via client-side tracking pixels).

Teaching Algorithms Beyond Typical Conversion Tracking – The Fine-Tuning Part

Once you nail difficulties mentioned above and you’re able to track the conversion points that matter for your business, it all comes down to those final yet important touches to unlock success.

One sophisticated strategy is the use of virtual conversions. These allow marketers to attribute value to different parts of the sales funnel while adhering to platform constraints, such as those set by Meta, which might only recognize one purchase event per session yet still requires a minimum of 50 conversions per week for optimal algorithm performance. By assigning appropriate values to each stage of the funnel, marketers can maintain a singular conversion goal while still optimizing for various engagement levels within the funnel.

Another crucial aspect is the ability to block unwanted conversions. This is essential for maintaining the integrity of your data and ensuring that only meaningful interactions are considered in your optimization efforts. Unwanted conversions can skew data and mislead your campaign's direction, wasting budget and resources on underperforming or irrelevant traffic segments.

It Doesn’t Have to Be Too Difficult to Set Up and Maintain

Understanding the complexities involved in optimal conversion tracking might seem daunting, but it doesn’t have to be a cumbersome process. This is why we have built Tracklution: We wanted every marketer to have the option to set up the most optimal conversion tracking for their unique case, despite the tools they have in use (ranging from but not limited to CMS, eCommerce platforms, form builders, etc.).

Tracklution aims to minimize the technical hurdles often associated with such data integrations, allowing marketers to focus more on strategy and growing their business, and less on backend configuration. This ensures that campaigns are agile, data-driven, and aligned with the latest best practices in digital advertising.

Conclusion

The performance of your paid advertisements is directly linked to the conversion data you provide to ad platforms. By ensuring the delivery of high-quality, comprehensive data to these automated systems, advertisers can not only improve the efficiency of their campaigns but also drive substantial business growth.

By harnessing tools like Tracklution and employing advanced tracking techniques, marketers can significantly enhance their advertising effectiveness, ensuring their algorithms are not only informed by the best data but also fine-tuned to meet specific business objectives.

In the age of automation, the goal for marketers should be clear: teach the algorithm to work for you, not the other way around.

TL;DR: Just Give Me the Essentials of This Article

1. Why should marketers teach algorithms instead of working for them? Teaching the algorithm allows marketers to harness automation for optimizing ad performance, reducing manual oversight, and improving campaign efficiency.

2. How does data quality impact algorithm performance in advertising? High-quality data ensures accurate campaign optimization by the algorithms, while poor data can lead to ineffective advertising outcomes.

3. What are major challenges in conversion tracking? Challenges include data loss from client-side tracking limitations, difficulties in tracking offline sales, and technical limitations with certain tools marketers use in their sales funnels.

4. What strategies can improve conversion tracking? Strategies include using server-to-server communication for accurate and secure data handling, employing virtual conversions to value different funnel stages, and blocking unwanted conversions to ensure data integrity.

5. How does Tracklution enhance conversion tracking setup and maintenance? Tracklution simplifies the technical aspects of conversion tracking, allowing marketers to focus on strategy and campaign optimization, regardless of the tools they use.


Anni S.

CEO of Tracklution


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Server-Side Tracking, First-Party Cookies and Conversion APIs for any website with easy installation. Simple yet powerful tracking tool for digital advertising.


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