If you are using Google Adwords, then you probably know how important it is to track your conversions and know where they are coming from. When doing PPC advertising, you pay for each click you receive, so you have to make sure that you know, which keywords are making you money, and which ones bring just waste clicks. In order to that, you need to use Conversion Tracking.
A conversions rate is simply a percentage of people out of all your clicks who visited your website and bought your product, or signed for newsletter, etc. For example, if out if 100 people, one person purchased your product, then you have 1% conversion rate, which isn't really good. 1% conversion rate is the usual rate for advertisers to get a sale or sign up. However, you want to increase that rate to up to 10%, which is not a magic number and is achievable.
By using conversion tracking you can not only learn, which keywords are performing better, but also which ads are bringing you profits. Keywords, ads and your landing page depend on each other, and they all have to be connected to get best results out of your campaign.
There are lots of factors which can affect your conversions, and ideally you would want to identify them and improve them as much as you can to developed your conversion rates. For example, the title and ad description of your ad is popular factor that affects the conversions. Let's say that you are selling a product on your landing page and sending visitors there via Adwords. If you don't put the price in your ad or at least say something, which will make a visitor think that they will be required to purchase something, you will kill your conversion rate and waste your clicks. You will probably get a sale once in like 200-250 clicks, also it will depend on your clicks too.
Even if you are using wrong keywords and ads, conversion tracking will help you to quickly find out, which of them are useless, and which are good. If you are not tracking your campaigns, then you are losing your time and money. It's vital to analyze your campaign's performance by tracking everything, because that's the only way how you can find out what works and what doesn't.
