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Why do you need to understand conversion lift and how does it help manage ad budget

Why You Need to Understand Conversion Lift and How It Helps Manage Ad Budget?

Conversion lift is our way of measuring the impact of today's clicks and impressions on revenue in the future within a specific time period. Essentially, it answers the question: Within seven days, will I get more sales from the ads that are served today and the clicks they receive today? This measurement is known as the conversion rate.

Let's illustrate with a quick example. Suppose I ran an ad campaign for just one day on January 1st. I got two sales on the first day. Then, on January 6th, I received another transaction from the same impression, raising my revenue by 25 percent. Later, on January 27th, I was attributed another half a sale, ultimately increasing my revenue by 37.5 percent from what I initially observed on January 2nd.

Does that make sense? Yes, it does. By predicting this on January 1st, it becomes possible to manage the budget more effectively because there is a significant, 37 percent difference in Return on Ad Spend (ROAS) down the line.

Keywords

  • Conversion lift
  • Clicks
  • Impressions
  • Revenue
  • Future sales
  • Ad campaign
  • Conversion rate
  • Budget management
  • Prediction

FAQ

Q: What is conversion lift? A: Conversion lift measures the impact of today's clicks and impressions on future revenue within a specified time period.

Q: How does conversion lift help in managing ad budgets? A: By predicting future sales from today's ad performance, businesses can manage their budgets more effectively and optimize their ad spending.

Q: Can conversion lift be calculated for a short ad campaign? A: Yes, conversion lift can be assessed for ad campaigns of various durations, including short, one-day campaigns.

Q: What does a 37 percent difference in ROAS indicate? A: It indicates a significant change in revenue attributed to the ad campaign, influencing budget allocation decisions.

Q: How can conversion lift prediction aid in future planning? A: Understanding conversion lift helps in forecasting future revenue and making informed budgeting and ad placement decisions.

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