A conversion occurs when a click on your ad leads directly to user behavior that you deem to be valuable, this can include a sales, a newsletter sign up, a query request or even a website page view. Google has developed a conversion tracking tool to measure these conversions which ultimately will help you identify your advertising success.
Having access to conversion data allows you to make smarter online advertising decisions. For example, conversion reports can help you identify which ads and keywords work best for you. Therefore, you can remove ineffective ads or keywords and focus your budget on ones are resulting in conversions.
How it works:
Conversion Tracking is the process of placing a small piece of code in your ad, landing page or thank you page to record the movements of your visitors. When a person clicks on one of your AdWords ads, a cookie is placed on the user’s computer. If the user reaches one of your conversion pages this is recorded as a conversion. This helps you know which desired actions were the direct result of your AdWords ad.
How conversion tracking can make you more money:
- Tracking helps you find out your return on investment and where money is best spent.
- It helps you discover what keywords, adgroups and campaigns are most profitable.
- It allows you to test new ads and conversion pages more effectively and more quickly.
- It lets you find out how much each visitor is costing you.
- It helps you discover any leaks in your landing page or website.