As an advertising consultant, I've often observed that many businesses, small and large, struggle to effectively use data in their advertising campaigns. This post will shed some light on the importance of data-driven decision making in advertising, and how you can leverage it to increase conversions.

The algorithm used by ad platforms is designed to maximize conversions at the lowest or targeted cost. It achieves this by driving significant traffic to your destination page. However, not all traffic will align with your ideal customer profile. Here's where data comes in handy. The algorithm utilizes data from successful conversions to deliver your ads to those who mirror the behaviors and characteristics of your converters.

For the algorithm to function effectively, it's essential to feed conversion data back to the ad platform. This involves reporting conversion events and rating the quality of those conversions. By doing so, you help the algorithm to understand your target audience better and to serve your ads to the right people.

Increasing conversions isn't solely about optimizing your ads; it's also about enhancing the quality of conversions on your destination pages. You very likely will need to make some improvements to your funnel, such as improving your checkout page, adding an email opt-in on the landing page, and setting up a follow-up email sequence.

It's also key to test different targeting options. Broad targeting can often result in a higher volume of conversions at lower costs, allowing you to reach a larger audience that fits your customer persona.

To demonstrate the effectiveness of this approach, take a look at this case study where we tested out a wide variety of variables to increase conversions and drive 45k signups at really low costs.