Jan
31
2011

AdWords Tracker ? The Importance of Analyzing Your Conversions

The principal purpose of an Adwords campaign is to make conversions. A conversion may be in the form of an actual sale, a newsletter sign up, completing a contact form or any other conversion method specific to your business. A successful Adwords campaign generates conversions. However, it is possible that Adwords do not generate some conversions and some may come from other sources of traffic such search engine results, direct URL traffic, article marketing, backlinks and other sources. Thus, for you to be able to tell how successful your Adwords campaign is, you need an Adwords tracker to analyze your conversions.

Analyzing your conversions allows you to tell the effectiveness of your Adwords campaign in comparison to your other sources of traffic. An Adwords tracker enables you to isolate the ineffective keywords and remove them from your campaign. There are many commercial AdWords tracker tools but Google’s own conversion tracking is very good and easy to set up.

To illustrate the importance of conversion tracking, assume two marketers are both using Google Adwords to promote their newsletter. Both are converting 100 sign ups daily and both are spending daily. This translates to .5 per sign up. The first marketer is pleased with the 10 sign ups daily and is using the newsletter to promote affiliate products, making per sign up per month. Thus, with 3,000 sign ups on average, the first marketer is making a net profit of ,500. On the other hand, the second marketer is a much smarter; he has used an AdWords Tracker to analyze his conversions and has come to the realization that a number of keywords in his campaign are unprofitable. Thus, he has dropped these non-performing keywords from his campaign. He also changes his bids on keywords that are not doing very well. Having removed these keywords from his campaign and altered his CPC bids, his overall CPC goes down. The second marketer is now able to generate 100 daily sign ups with only . His average cost per sign up is thus .1. At an average 3,000 sign ups monthly at profit per sign up, the second marketer makes a net of , 700, , 200 more than the first marketer does. This is the power in analyzing your conversions.

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