KPIs for Marketing

KPIs for Marketing: display ad conversions

Learn how to measure the success of your display ad campaigns with these essential KPIs for marketing.

Online marketing offers numerous opportunities to drive traffic and generate conversions. Display ad conversions are one of the most effective ways to target potential customers and boost sales for your business. Conversions are a critical factor in evaluating the success of your marketing campaigns, and it is crucial to measure and analyze key performance indicators (KPIs) to make data-driven decisions. In this article, we will explore the significance of display ad conversions in marketing, key performance indicators, setting goals and benchmarks, and strategies to improve conversion rates.

Understanding Display Ad Conversions

Display ad conversions are an essential aspect of any successful marketing campaign. They provide valuable insights into the effectiveness of your ad campaigns and website's landing pages in driving visitors to take action. By understanding display ad conversions, you can optimize your campaigns for a higher return on investment (ROI) and stay ahead of the competition in today's digital landscape.

What are Display Ad Conversions?

In simple terms, display ad conversions occur when a visitor clicks on your ad and then completes a specific action on your website. These actions can range from purchasing a product to filling out a form or subscribing to a newsletter. Display ads are designed to entice your target audience with visually appealing images, captivating messages, or promotions that incentivize them to click through to your landing page. The ultimate goal is to encourage your audience to take a desired action that reflects the success of your ad campaign.

For example, if you are running a display ad campaign for a new product launch, you may include a promotion code that offers a discount to visitors who click through to your landing page. If a visitor clicks on your ad and then uses the promotion code to purchase the product, that would be considered a display ad conversion.

Importance of Display Ad Conversions in Marketing

Display ad conversions play a crucial role in measuring the success of your marketing campaigns. By tracking conversion rates, you can identify which campaigns are generating the most leads or driving the most sales. This data provides valuable insights into areas of improvement, where you can optimize your campaigns for a higher ROI.

For instance, if you notice that one of your ad campaigns has a low conversion rate, you may need to adjust the messaging or design of the ad to make it more appealing to your target audience. Alternatively, if you find that a particular landing page has a high bounce rate, you may need to optimize the page to make it more user-friendly and encourage visitors to take action.

Tracking display ad conversions is also essential for measuring the effectiveness of your marketing budget. By understanding which campaigns are generating the most conversions, you can allocate your budget more effectively and maximize your ROI.

In conclusion, display ad conversions are a critical component of any successful marketing campaign. By understanding what they are and their importance, you can optimize your campaigns for a higher ROI and stay ahead of the competition in today's digital landscape.

Key Performance Indicators for Display Ad Conversions

Key performance indicators (KPIs) are quantitative metrics that provide insights into the performance of your marketing campaigns. Measuring KPIs for display ad conversions will help you identify which campaigns are delivering the results you need. Here are some of the crucial KPIs you should track:

Click-Through Rate (CTR)

The click-through rate (CTR) measures the percentage of people who clicked on your display ad compared to the total number of impressions. A high CTR indicates that your ad is relevant and engaging, capturing the attention of your target audience.

It's important to note that a high CTR doesn't always mean a high conversion rate. While it's great to have people clicking on your ad, it's even better if they're taking action once they get to your website. Make sure your landing page aligns with your ad and provides a clear call-to-action to increase your chances of conversion.

Conversion Rate (CVR)

The conversion rate (CVR) measures the number of visitors who completed a goal action on your website out of the total number of clicks on your display ad. A high CVR means that your ad and landing page are aligning with your audience's needs, pushing them to take action.

Conversion rate optimization (CRO) is a crucial part of any digital marketing strategy. By analyzing your website's user experience and making data-driven changes, you can increase your CVR and ultimately drive more revenue for your business.

Cost per Conversion (CPC)

The cost per conversion (CPC) measures the amount spent on converting a visitor into a lead or customer. This metric will help you understand which campaigns offer the best ROI and where you should allocate your marketing budget. If your CPC is too high, it may be time to re-evaluate your campaign or target audience.

It's important to note that a high CPC doesn't necessarily mean a low ROI. If your campaign is targeting high-value customers, it may be worth spending more to convert them. Make sure you're tracking your ROAS to ensure you're getting the most out of your marketing budget.

Return on Ad Spend (ROAS)

The return on ad spend (ROAS) measures the revenue generated for each dollar spent on advertising. This metric will help you evaluate the overall success of your campaign, enabling you to make data-driven decisions in optimizing your marketing efforts.

ROAS is a great metric to use when comparing the success of different campaigns. For example, if one campaign has a higher ROAS than another, it may be worth reallocating your budget to the more successful campaign to maximize your ROI.

View-Through Conversions (VTC)

The view-through conversion (VTC) metric measures the number of times a visitor saw your display ad but did not click before returning later to complete a goal action. VTC is beneficial in validating the success of your ad's impact on a potential customer's purchasing decision.

VTC is especially useful for campaigns that target customers who may not be ready to convert immediately. By tracking VTC, you can better understand how your ads are influencing potential customers and make data-driven decisions to optimize your campaign's success.

Setting Goals and Benchmarks for Display Ad Conversions

Display advertising is a powerful tool for businesses to reach their target audience and drive conversions. However, simply launching a display ad campaign is not enough. To measure the success of your campaign, it is essential to set goals and benchmarks that align with your business objectives. Here are some strategies to consider:

Identifying Your Target Audience

The first step in optimizing your display ad conversion performance is to understand your target audience. Conducting market research can help you identify your audience's demographics, interests, and needs, allowing you to build ad campaigns that solve their problems and capture their attention. By tailoring your messaging to your target audience, you can increase the likelihood of conversions and maximize your ROI.

Establishing Realistic Conversion Goals

Once you have identified your target audience, it's time to set realistic conversion goals based on your product, budget, and target audience. The key is to set goals that are challenging yet achievable, allowing you to track your campaign's progress and make data-driven decisions. By setting conversion goals, you can identify benchmarks to measure your campaign's success and track your progress over time.

For example, if you are launching a new product, you may want to set a goal of generating 500 conversions in the first month of your campaign. Alternatively, if you are looking to increase brand awareness, you may set a goal of achieving a certain number of impressions or clicks within a specific time frame.

Monitoring and Adjusting Benchmarks

Once you have established your conversion goals and benchmarks, it's important to monitor your campaign's performance regularly. By tracking your benchmarks, you can make data-driven decisions that optimize performance and improve ROI. For example, if your campaign is not meeting its conversion goals, you may need to adjust your messaging or targeting to better align with your audience's needs.

It's also important to adjust your benchmarks over time based on performance metrics. As your campaign evolves, you may find that certain benchmarks are no longer relevant or that new benchmarks need to be established. By regularly monitoring and adjusting your benchmarks, you can ensure that your campaign is always optimized for success.

In conclusion, setting goals and benchmarks is essential in measuring the success of your display ad campaign. By identifying your target audience, establishing realistic conversion goals, and monitoring and adjusting benchmarks, you can optimize your campaign for maximum ROI and achieve your business objectives.

Strategies to Improve Display Ad Conversion Rates

Now that we have explored the importance of display ad conversions in marketing, KPIs, and setting goals and benchmarks let's highlight some strategies to improve conversion rates:

A/B Testing for Ad Creatives

A/B testing is the process of comparing two versions of an ad to identify which one generates the most conversions. You can test different colors, call-to-action (CTA) buttons, images, and copy to optimize your ads for a higher conversion rate.

For example, if you are running a display ad campaign promoting a new line of running shoes, you could A/B test different images of people running with the shoes, different colors for the CTA button, and different copy that highlights the benefits of the shoes, such as increased comfort or improved performance.

By testing different variations of your ad creatives, you can identify which elements are most effective at driving conversions and optimize your ads accordingly.

Optimizing Landing Pages

Landing pages are critical in driving conversions. Optimizing your landing pages can increase your conversion rate and improve the customer experience, resulting in better ROI. Ensure your landing page design aligns with your display ad and simplifies your goal action.

For example, if your display ad is promoting a free trial of your software, your landing page should clearly and prominently highlight the free trial offer and make it easy for visitors to sign up. The design and layout of the landing page should also be consistent with the design of the display ad, providing a seamless experience for the visitor.

Additionally, you can test different variations of your landing pages to identify which layout, design, and copy elements are most effective at driving conversions.

Utilizing Retargeting Campaigns

Retargeting campaigns are a powerful way to re-engage visitors who previously clicked on your display ad but did not convert. Use retargeting to display personalized content that reminds your visitors about your product or service and encourages them to convert.

For example, if a visitor clicked on your display ad promoting a new line of running shoes but did not make a purchase, you could retarget them with a display ad that highlights a limited-time discount on the shoes or emphasizes the benefits of the shoes, such as improved performance or comfort.

Retargeting campaigns can be highly effective at driving conversions because they target visitors who have already shown interest in your product or service, making them more likely to convert.

Leveraging Audience Segmentation

Segmenting your audience based on their behaviors, interests, and demographics is an effective way to personalize your ad campaigns and optimize for better conversion rates. This strategy will ensure that your ads are relevant to your target audience and drive more conversions.

For example, if you are running a display ad campaign promoting a new line of yoga apparel, you could segment your audience based on their interests in yoga, fitness, or wellness. You could also segment based on demographics, such as age or gender.

By segmenting your audience and tailoring your ad campaigns to their specific interests and needs, you can increase the relevance of your ads and improve your conversion rates.


Display ad conversions are a key factor in evaluating the success of your marketing campaigns. Tracking KPIs, setting goals and benchmarks, and implementing strategies to improve conversion rates will help you optimize your advertising performance and increase your ROI. When done right, display ad conversions can offer significant benefits for your business, such as increased traffic, leads, and sales.