Tracking users on the internet and collecting data has created prime opportunities for business to grow. Getting more data on consumers has given companies the ability to know more about who users are and how they operate. However, recently, there have been drastic changes to consumer privacy settings on the internet. This has made it more difficult for businesses to create targeted advertising campaigns towards users. Conversion tracking has provided necessary information for ad networks for a long time. But, the changes in browser restrictions and ad blockers have made it much more difficult for ad networks to understand user behavior. Therefore, ad networks are now encouraging the use of Conversion APIs to gain the necessary data businesses need to reach consumers.
Definition of Conversion APIs
Conversion APIs are the newest conversion tracking technology networks are using today. They are used to share events server-side instead of client-side. This allows the integration of data to not be affected by browser restrictions and ad blockers. You might be wondering why they haven’t been used the entire time. The reason is that they are more time consuming and labor-intensive to set up than a simple web pixel. Storing conversion events in your data warehouse can help reduce the time and effort needed for Conversion APIs to be successful. This way, companies have the ability to track events without being negatively impacted by consumer privacy restrictions.
The difference between Conversion APIs and web Pixels
Before, web pixels were the easiest way to send data to your ad platforms. Web pixels only require a code snippet placed on top of your website or app. The pixel is able to track user event data through third-party cookies. Some examples of events where data collection takes place are add payment info, contact, find location, and search. Since the data is tracked through a third-party, it is not owned by you. The problem is that users are now able to block third-cookies and keep web pixels from retrieving that data. This has hindered the ability for web pixels to work as well as they used to. Web pixels also use client-side tracking, which only captures online events and interactions. Capturing solely online events doesn’t give you a complete view of a customer. Conversion APIs run server-side. This means that you own the data, and it’s not limited by third-party cookies and browser restrictions. They also capture events offline, so you aren’t limited to only online data tracking.
Conversion Data in the data Warehouse
For a full view of your customer, you don’t just want to track users on your website. It’s likely you are tracking events in many solutions such as your customer relationship management (CRM) platform, engagement events in marketing, and utilization events in digital products. Connecting those point-to-point solutions to APIs can be costly and give incomplete data. Fortunately, most of this information is already stored in your data warehouse. If these conversion events are stored there, there is significantly less time and effort that has to be put into development. Once it’s in your data warehouse, you can use tools like Reverse ETL to send conversion events to ad network endpoints. To reduce development effort and processes when leveraging APIs, it’s best to make your data warehouse the source of your conversion data. You can also store conversions that web pixels can’t like offline purchases and events. With access to online and offline data, you will get more crucial information about customers with browser restrictions.
Sync with Reverse ETL
After your data warehouse becomes your source of conversion data, Reverse ETL forwards data and conversion events from your warehouse to your chosen destination such as ad networks. To make the most out of conversion events, you must retrieve the data from the data warehouse and send it to endpoints that use it. This gives your marketing team the ability to have a deeper understanding of customers and create more targeted audiences. Not only does it provide more enriched data to your marketing team, conversion events are not hindered by major browsers blocking third-party cookies. While client-side tracking is becoming less effective, APIs are providing the opportunity to optimize ads, customize audiences, and create personalized experiences for customers, server-side.
Own your Data
Web pixels are collecting less data due to consumer privacy rights. Conversion APIs used to be much more complex than embedding a piece of code at the front-end of the codebase. However, making your data warehouse as the source of conversion events will help you leverage APIs. Data is collected server-side instead of client-side, allowing businesses to not be hindered by browser restrictions. The data warehouse can also collect online and offline data, giving a complete view of a customer. Reverse ETL can move the data to ad network endpoints so your marketing team has full access to crucial data in order to make actionable decisions. With this kind of technology, businesses have access to the data they need to grow their business to new heights.
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