Conversion Tracking
Adding conversion tracking to your Adwords PPC account can significantly improve the return on investment from your campaign. It allows you to track conversions at the campaign, group and keyword level so you can find out which areas of your account are making you money and which are not.
The main use of conversion tracking is to track sales made on your site. However, if you do not have a standard e commerce site you can still use conversion tracking to measure form completions, email sign ups or just visits to a specific page.
Setting Up Adwords Conversion Tracking
It is quite straight forward to set up conversion tracking in Adwords. Under the Campaign Management tab in your Adwords account select Conversion Tracking from the menu bar. Click on the Create an action button and enter all the relevant details. Once you have finished it will produce your conversion code.
You need to insert this code into the conversion page on your website, if you are tracking sales this would be the ‘thank you’ page which is shown once a sale has been completed. The code needs to be placed between the body tags, preferably nearer the </body> tag so that the small Google image appears at the end of the page.
Be careful to add the code to just 1 page, not to a footer template used on all your pages. If you start getting a conversion rate of 100% this is probably your problem, unless your website is irresistible to visitors!
Using The Conversion Data
Google states that it can take up to 24 hours before a conversion shows in the Adwords interface. You will get most of your results within a day but from my experience it can take up to 3 days for all conversions to show. For this reason I analyse my conversion data weekly, 3 days after the week ends. If you track Monday to Sunday, carry out your conversion analysis the following Thursday to get accurate figures.
As with all statistics you need to build up a certain amount of data before it really means anything. The time this takes will depend on how many conversions your site makes. A keyword with 300 clicks will give you an idea of the true conversion rate but 500 clicks is more accurate.
Once you have some data to work with, go through your account and check the cost per conversion for every ad group and keyword. You should try to establish an average profit per sale from each ad group, you can use this figure to work out which keywords are working and which are wasting money. If a keyword has a cost per conversion slightly higher than the average profit per sale you may want to test it at different positions to see if you can make it profitable. If any keywords have a cost per conversion way over your average profit figure you may just want to pause them.
Usually some ad groups and keywords will perform better than others. You should try and distribute your budget so that you get all the clicks available for your most profitable keywords.
Be careful with your Adwords budget. Most advertisers are given a credit line from Google and pay only once a month or when a certain limit is reached. This makes it very easy to overspend. If you want to get up and running fairly quickly you should be prepared to make a loss on the first few weeks of a new campaign while you adjust it.
A good model to follow once you have a profitable campaign is to re-invest a percentage of your profits each month into your Adwords budget. This way you can steadily increase your spend and therefore your profits with less of a financial risk.