When you are advertising in AdWords it’s a huge mistake to not track your conversions.
A conversion can be any number of things. It can be a sale on your website, it can be someone who makes a phone call, it can be someone who downloads a report that you’re offering. Whatever you want to set up as being a conversion, you set this up in your AdWords campaign. From there Google will give you a piece of code that you can put on your website. Sometimes it can be trickier – particularly the phone call conversion (you might need the help of a developer to get this set up). But in general you can put this conversion tracking code on your website.
So after somebody makes a purchase, after they fill out a form, or when they make a phone call to you, that will show up in your AdWords account as a conversion. From there you’ll be able to see exactly what is generating sales. You’ll be able to see keywords that are generating sales, you’ll be to see ads that are generating sales, you’ll be able to see what time of day the sales are coming in, what day of the week, what part of the world they’re coming from. It gets very specific.
If you are not tracking conversions you’re really taking a shot in the dark, and all you can really do is go based on what you think is going to bring you sales. A lot of the time this isn’t true.
A lot of the time, for example, you might have two ads – one of them has a really high click through rate but a lower conversion rate, the other one will have a lower click through rate but a higher conversion rate. This is actually really common. The reason is an ad might be really good at getting people to click on it, but ultimately the wrong people click on it and they don’t end up making a purchase. A different person clicks on another ad because they actually are interested in what you are selling so once they get through to your site and they do make a purchase.
This is why conversion tracking is so important. Ultimately, conversions rule everything. If an ad is getting a low click through rate but higher conversions and higher profitability, that’s the ad you want to stick with. And the only way to know this is to have conversion tracking set up.