The first step is Create a Conversion. In this step, we define what we want to track. This could be anything from a lead form submission to a purchase, and this can be tracked online and offline. We’ll name the conversion, assign a category, like qualified lead or purchase, and optionally set a monetary value.
Why assign a monetary value indeed? I can think of four reasons why. One, it quantifies business impact. By assigning a value, whether fixed or dynamic, you can directly link conversions to revenue or business outcomes. This helps demonstrate the return on investment of your campaigns in concrete terms.
Two, it enables value based optimization. When you set a conversion value, LinkedIn's campaign manager can optimize not just for the number of conversions, but for the value of these conversions. This is especially useful if different conversions like demo request versus a purchase have different business impact.
Three, it supports smarter bidding strategies. If you choose conversion value as your optimization goal, the platform can automatically adjust bids to prioritize high value conversions, not just maximizing your return on ad spend.
And four, it improves reporting and attribution. Having a monetary value allows you to compare performance across campaigns, channels, or time periods more meaningfully. It also helps in attributing revenue to specific touchpoints in the past.