Ad Tracking, also known as ad effectiveness tracking, is used to monitor, track and measure the performance and effectiveness of digital ad campaigns.
It includes different measurement methods and is a way for companies to get information about the efficiency of their marketing campaigns. Depending on campaign type different KPIs are monitored and measured. For CPM campaigns measuring the number of impressions, views and clicks as well as conversions is important. For CPI campaigns the number of installs delivered is the main focus KPI.
Companies use ad tracking in order to optimize their ad campaigns and therefore profits in the long run. Optimizing the targeting to reduce i.e. CPI for install campaigns can help reduce ad spend and drive profits.
Ad tracking solutions provide a whole bunch of useful information for companies. They can track which URL has been clicked, where a user came from,which browser, cell phone or operating system has been used and much more. These information are stored and used to i.e. create reports or customer segments and in return measure and improve the effectiveness of ad campaigns. At the end all information can be broken down to optimize ROI (return on investment) or ROAS (return on advertising spend) for the company.