What is Ad Tracking

Ad tracking is used by marketers that want to check the effect their advertising has on an audience, webmasters that want to monitor organic traffic, product owners that want to increase sales, brands evaluating the effectiveness of their brand awareness campaigns and in-house marketing departments. It can be used with paid advertising and organic (search) traffic.

Ad tracking provides a constant data steam that can be basis for further analysis and then further optimization efforts. This whole process is a feedback loop, where any changes to the campaigns’ run, such as optimizations, influence the data that is tracked and then the tracked data influences optimization efforts.

Ad Tracking Techniques

Ad tracking techniques differ depending on the needs of marketers and the overall shape of a campaign funnel. Some ad networks pose restrictions on which techniques you can use by banning redirections. At the same time, the redirect method works great for affiliate marketers that want to connect data coming from different platforms (ad networks and affiliate networks).

Pixel: This technique uses small scripts, usually referred to as ‘pixels’ or eventually ‘tags’ that, when implemented on a web page, send an HTTP request to an ad tracking platform with information about an event. Scripts are widely used but they do pose some problems: they store user identifying data in a cookie that can be blocked or deleted. Plus, they require editing a web page’s code, which may be a hassle or even impossible, if a marketer sources their offers from third parties.

Redirect: This technique uses redirects through a tracking domain to register information about a visit. A redirect is very fast and it is almost unnoticeable for a user. Redirects do not require editing of landing pages and they enable more advanced page rotations or A/B testing but may be incompatible with certain ad networks that forbid user redirections, as we have mentioned earlier.

API: This is the most reliable method but due to the fact that it requires both platforms having API endpoints that could talk to each other, it is only reserved for the biggest platforms. In this scenario, all information is passed in the background using API protocol.

Popular ad tracking platforms

Google Analytics: Google’s free to use analytics software is a popular choice among marketers. It enables almost endless customizations and is suitable for small businesses and enterprises alike. The downsides include a steep learning curve and not being compliant with GDPR.

Voluum: Voluum is a ad tracking solution with a different approach to ad tracking than Google analytics. While the latter collects detailed information about each user visit, Voluum introduces a more performance-oriented approach, allowing for massive A/B testing and campaign management tools capable of handling hundreds of campaigns on paid ads. With features like real-time analytics, traffic distribution AI, and anti-fraud protection, Voluum empowers advertisers to maximize ROI and streamline their ad operations.

Common Problems in Ad Tracking

Data Inaccuracies: Ad tracking can suffer from inaccuracies due to ad-blockers, browser settings, or user privacy concerns. This can lead to discrepancies in reported metrics.

Ad Fraud: Advertisers often face the challenge of ad fraud, where fake clicks and impressions inflate costs without generating genuine leads. Ad tracking solutions have evolved to combat fraud through fraud detection algorithms.

Privacy Concerns: The collection and use of user data for ad tracking have raised privacy concerns. Regulations like GDPR and CCPA have compelled advertisers to adopt more transparent and consent-driven tracking practices.

Controversies Surrounding Ad Tracking

User Privacy: The invasive nature of some tracking methods has sparked debates over user privacy. Striking a balance between effective tracking and respecting user privacy is an ongoing challenge.

Data Security: High-profile data breaches have raised questions about the security of data collected through ad tracking. Advertisers must implement robust security measures to protect sensitive information.

Benefits of Ad Tracking

Improved ROI: Ad tracking enables marketers to allocate resources more efficiently by identifying high-performing campaigns and optimizing underperforming ones. This results in a better return on investment.

Targeted Advertising: By analyzing user behavior, ad tracking allows advertisers to deliver personalized and relevant ads, increasing the likelihood of conversions.

Enhanced User Experience: Data-driven insights from ad tracking help create tailored user experiences, reducing irrelevant ads and improving user satisfaction.

Data-Driven Decision-Making: Ad tracking equips marketers with valuable data to make informed decisions, refine strategies, and adapt to changing market conditions.

In conclusion, ad tracking is an indispensable component of modern digital marketing. While it faces challenges related to privacy and data accuracy, it continues to evolve with emerging technologies and regulations. Balancing the interests of advertisers, publishers, and consumers remains a critical consideration as the industry continues to evolve.