Conversion Tracking refers to the process of identifying a return on investment (ROI) for your business.
This conversion can be of various types, depending on the business.
It can either be a sale, a signup, a pageview or a lead.
This action performed by users is tracked down with the help of unique tagging URL's, which directly provide data on traffic visiting your website, and also the sources of traffic.
Conversion Tracking for PPC is undeniably the best way to know if you are in business or not.
PPC or pay-per-click advertising has various facets, and a huge market to cater to.
The products are also numerous.
The way of measuring profit for each advertiser is different.
It could be a simple purchase on the website or a signup for a service.
It could also be a pageview of a particular page on the advertiser's website or a lead, such as a user contact detail.
These actions when tracked form the basis for calculating ROI for the business.
How Conversion Tracking Works What happens when a user visits a particular website, and clicks on a particular item and purchases it, or when he fills up an inquiry form asking him for contact details? How does the advertiser get to know from where the visitor reached his website, or how long he stayed on a particular page, and when he left the website? These questions are answered with the help of conversion tracking for PPC.
When a typical ad is written, its keywords and ad copy are tagged with unique URL's which are associated with the URL of the landing page.
A conversion tracking code is placed on the conversion page of the website, which could be the "signup page" or the "thank you" page.
Once a user clicks on the ad and reaches the advertiser's website, a cookie is placed on the user's computer which tracks the actions performed by the user.
It tracks from which keyword or ad copy the visitor reached, and the action performed by the user on the website.
A conversion value can be given, for measuring ROI better, such as value of each purchase or value of each signup, and then conversions can be measured in the form of number of conversions versus number of visitors or cost per conversion.
This is essential for measuring PPC success, and is very frequently used by advertisers today.
How To Enable Effective Conversion Tracking The most essential part of conversion tracking lies in relevant advertising.
What you see should be what you get.
Many advertisers promise freebies or free shipping in their ads, and fail to follow it up on the landing page.
Make sure you give your customers what they are looking for.
The reason they clicked on your ad is because they were interested in what you had to offer.
Writing effective ad copy is crucial to conversion tracking.
"Call to action" terms, such as 'buy now' or 'signup now' initiate user interest.
These clicks turn into sales once the user reaches the advertiser's landing page.
Also, you need to make sure the code is correctly placed on the appropriate page of the landing page.
It is impossible to track conversions when the code is incorrectly placed, or is placed on an irrelevant page.
Conversion Tracking, if avoided, can cost you heavily.
You will unnecessarily waste dollars, not knowing which ads and keywords work best for you.
Ultimately, it is you who has to know how to advertise smartly.