How to use adwords Conversion Tracking Software to Optimize your campaigns

A good conversion tracking software can tremendously enhance the ROI for all adwords campaigns.Tracking conversions can be the difference between an average and a great campaign. A Conversion tracking software doesn't just tell you which keywords are getting you the desired results , it also saves you money by isolating the keywords that are getting you clicks but no conversions.

Calculating the ROI for individual keywords helps us understand which keywords are profitable. The formula that you can use to calculate your return on investment is net
profit divided by advertising cost multiplied by 100.

Gross Profit - Ad Cost

ROI = ------------------------ X 100

Ad cost

However, it's not easy to manually track ROI for all your keywords when you are promoting more than one product using several ad groups. That's why using a reliable conversion tracking software becomes so important.

Adwords advertisers can use the conversion tracking software in Google adwords account.It's an extremely efficient software and it's free.Here we will see how to track conversions on your landing page using this software. If you prefer visual demonstration, here's a video from Google adwords that explains how to use the adwords conversion tracking tool :






After logging into your adwords account , click on the "Conversion Tracking" link on the bar at the top of the page. This will take you to the conversion tracking page. Click on the "Create an Action" button on the top right.Now you will reach the following page



Name your action and choose an action from the drop down menu based on what you expect from the action : purchase,sign up ,lead generation etc. In the "revenue for action" box fill in the dollar amount that you expect to earn from each sale. The conversion tracking tool will use this amount to calculate the conversion rate and cost per conversion which will be shown against each keyword for your campaigns after you place the conversion tracking code on the conversion confirmation page or thank you page.Select the conversion page security level depending on whether your landing page is http or https.

Visitors reaching the confirmation page through your adwords ad will see the "Google Sites stat send feedback" text on the confirmation page.Generally, advertisers use the thank you page to place the code. So you will have to customize the background color of the text to blend it with the background color of the confirmation page. Now click on "Save action and get code" button.This will generate a conversion tracking code that you will need to place on the conversion confirmation page or thank you page of your site to track your visitor's actions.

Open the Thankyou page in a webpage editor and locate the closing body tag which looks like this : </body> . Insert the conversion tracking code just before the </body> tag ,save and upload it to your website.The new columns of Conversion rate and cost per conversion will now appear alongside your keywords as shown by the yellow columns in the following image


Once you have the code working you will know which keywords need to be dropped and which ones are already profitable so you can spend more on them to increase your ROI.All you have to do is to take a look at the ad groups that are showing the results generated by the conversion tracking software.

You can also use the conversion tracking software for cross-channel tracking to analyze conversion tracking for non-adwords campaigns.To learn how to reap the full benefits of the adwords conversion tracking software read the fifth chapter of the Adwords made easy ebook.