What is conversion tracking? How do you measure ad spend?
Conversion, CPA and ROAS concepts and simple calculations to see what a visitor from an ad does.
Running ads is easy; measurement is needed to know whether they work. At the foundation of measurement is conversion tracking.
What is a conversion?
A conversion is a visitor taking an action that is valuable to you. It could be a purchase, a form submission, a phone call or a file download. You decide first which action counts as a conversion for you.
Core metrics
- CPA (cost per conversion) = Ad spend ÷ Number of conversions
- ROAS (return on ad spend) = Revenue from ads ÷ Ad spend
- Average order value = Total revenue ÷ Number of orders
For example, if you get 40,000 TRY revenue from 10,000 TRY of spend, ROAS is 4. This ratio alone doesn't mean "good" or "bad"; it should be interpreted against the product's profit margin.
How is measurement set up?
- Define the actions you count as conversions
- Add the relevant tracking codes to your site and test that they work
- Track campaigns across ad channels with the same naming as your site data
- Review reports at regular intervals
To calculate the numbers quickly, you can use the ROAS and CPA tool on our Calculators page.
This article is for general information. We recommend consulting the relevant specialist for legal, financial or technical decisions.
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