One of the greatest benefits of PPC marketing in general is that the campaigns are highly measurable in the sense that they allow you to find out if your advertising campaign has been profitable or not.
With conversion tracking intalled, you’ll be able to track:
- how much quality traffic you’re receiving for your ad spend;
- how much money you are spending on clicks and conversions, and
- how much revenue your advertising campaigns are actually generating for you.
If you have setp a campaign on Facebook, you can evaluate the success of your campaign by enabling conversion tracking on your account, which you can implement by installing the Facebook tracking pixel. This is the most critical element when it comes to building a successful account or measuring results. If you’re not tracking conversions, there’s no way for you to know whether your advertising campaign is profitable or not.
More importantly, not tracking conversions means you have no idea how much you are paying to generate any conversions or sales that your campaign might be receiving. If you have a keyword-targeted campaign on AdWords or Bing, you might be paying above the odds for keywords that make the account unprofitable, but you will have no idea unless you setup conversion tracking.
What is Conversion Tracking?
Conversion tracking is simply a process that allows you to identify the specific component that was responsible for specific actions being taken on your account. This component could be a keyword match type, a variation of a keyword, a time of day, a bid modifier or a geographic location. Conversion tracking will allow you to break down the campaign so that you can eliminate the components that are leading to wasted spend on your account and boost your ROI.
Without tracking conversions, all the optimizations you make to your site are guesswork. The fact of the matter is, optimizing your campaign for profit or success is only possible with conversion tracking.
Setting up conversion tracking is nothing more than simply adding a snippet of code to a page on your website that, when it fires, signifies that a conversion has occurred. The code places a cookie on your visitors’ web browser. When this page loads, the cookie will fire, and it will mean a visitor has converted on your goals.
Examples of conversions include a website conversion, submission of a lead gen form, a purchase of your product, a newsletter sign up and a view of a key page such as a pricing page. Each type of conversion will be worth a different value. If you have multiple conversions on your website, you should be tracking each conversion separately. This is because each type of conversion represents different types of opportunities to your company.
You might be willing to pay more for specific conversions and less for other conversions. So if you have multiple separate types of conversions on your site, each of those conversions should have their own separate thank you pages so you can analyse the value of each conversion.
If you are running an eCommerce website, you would typically add the code to the thank you page, and you’ll know a conversion has happened every time the page loads.
If a user manages to get to the page that says “thank you for your order”- for an eCommerce conversion or thanks for subscribing – for a newsletter, then you know that that visitor has done exactly what you want them to do on your website. This is the page you’ll need to monitor for conversion tracking.
Note that you can track multiple conversions for the same campaign. It is critically important to identify what actually led to conversions on your site.
You need to know:
- Which query the user searched on that brought them to your site.
- What keyword was triggered by the search query.
- which ad group or campaign was responsible for the conversion.
- What time of the day the ad was clicked that led to the conversion.
- What geographic location is the user that converted?
- What match type was responsible for the conversion?
- What ad text attracted the click that led to a conversion?
- the ad they clicked on to get to your site.
This allows you cut out the parts of the campaign that are not working and enhance and build upon those parts that are actually working. Without CT in the account, you’ll have no way of tracking the overall profitability of the account.
Conversion Tracking also allows you to identify keywords that are generating the most conversions, and which keywords are causing the ad group or campaign to make a loss i.e. which keywords are generating conversions at a rate that is unprofitable.
Without tracking conversions, all of the optimizations you are spending on your site, is guesswork. Often times, without conversion tracking, you might think that keywords that have high CTR and low CPC are your best performing keywords, while more expensive keywords with low CTR are your worst performing keywords. In actuality, the opposite might be the case. You can only know this by implementing conversion tracking.
Campaign Tracking also tells you what those visitors did when they got to your site. Once someone clicks on your AdWords ad, conversion tracking will monitor the user for the period of time that you set. For example, you can choose to track the user for 30 days. If the user converts 29 days after they first landed on your site, the conversion will be attributed to the ad.
What is a Conversion?
By conversion, Google simply refers to the specific action that you want your visitors to take on your website. This could be anything from completing a purchase through your shopping cart, filling out a lead gen form, signing up to a newsletter subscription, watching a video or downloading an eBook.
Benefits of Installing Conversion Tracking
Following are a number of benefits for installing conversion tracking in your account.
- With conversion tracking installed, you can tell which ads lead to sales and not just clicks. For example, assume that you’re split-testing two ads, and one gets a click through rate (CTR) of 0.50%, while the other attracts only 0.20%. Without conversion tracking, you might think the first ad is more profitable to you. However, what if the first ad attracts lots of clicks but not many buyers, while the second ad gets fewer clicks but far more buyers? This will tell you that the first ad is not a good representation of what your visitors are expecting when they get to your landing page. This will ultimately boost the ROI of your account.
- Conversion tracking allows you to get meaningful keyword intelligence and bid more intelligently on keywords. People search differently using different keywords and phrases when searching for information or for products or services to buy. People using different terms will convert at different rates. For example, you could find that people who type in the words: buy flowers online convert at a much higher rate than searchers who type in the words flowers to buy online. You could then adjust the amounts you bid on each keyword because they offer different value. The only way to know the true value of those search terms is to run the keywords, pay for the clicks they generate, and then evaluate the conversion tracking data. You may even find that a high-traffic keyword that’s costing you a lot of money isn’t actually generating any quality leads or sales, which means the keyword is not as valuable as it seems at face value or has a very high cost-per-conversion. You can then lower your bid, change your offer, or simply retire the keyword.
- You can slash your monthly AdWords spending without sacrificing any profit by simply eliminating all the keywords and ads that aren’t leading to sales or generating sales at a cost-per-conversion that is not profitable for your account.
Conversion tracking doesn’t just record that a conversion has happened somewhere in your account. It actually associates the conversion all the way back to the specific campaign, ad group, ad, keyword, time of day, geographic location and keyword bid so that you can define and track conversions or things like sales or leads right down to the individual campaign, ad group, keyword and ad level.
In short, conversion tracking will help you identify the keywords that drive conversions, and those that do not. This means that not only can you see how many conversions a campaign has generated, you can even get down to the campaign, ad group, the ad, bid and keyword, and analyze your ROI.