Measuring ROI with AdWords conversion tracking

Written on 19 March, 2009 by WebCentral
Categories: Pay Per Click

If you have an online commerce site and you are running an AdWords campaign and you do not have conversion tracking installed then read on because you need to utilise this great feature of AdWords. Conversion tracking provides invaluable site usage statistics that helps online commerce sites track purchases and sales to better measure return on investment (ROI).

What is conversion tracking?

Conversion tracking is a tool that measures conversions with the ultimate goal of better optimising campaign through greater reporting data on the effectiveness of your keyword selection and ad text.

In online advertising, a conversion occurs when a click on your ad translates directly to user actions that you feel are valuable, such as a product or service purchase, forum or newsletter signup, specific page view, or lead.

How does it work?

AdWords Conversion Tracking works by placing a cookie on a user’s computer when they click on one of your ads. Then, if the user reaches one of your conversion pages, the cookie is connected to your web page. When a match is made, Google records a successful conversion for you.

So how do I do I set it up?

All you have to do to set up conversion tracking is place a snippet of code on your conversion confirmation pages.

Here’s how to obtain this code and begin tracking conversion data:

  1. Visit https://adwords.google.com/select/ConversionTrackingHome. (You can also reach this page by clicking Conversion Tracking at the top of your account’s Campaign Management tab.)
  2. Click Create your first action.
  3. Follow the steps provided. We’ll guide you through the process of receiving your code, placing it on your site, and completing the set-up.
  4. Profit!!!