Google AdWords Learning Center - Using Conversion Data to Improve Your ROI

Once you've implemented conversion tracking, two new columns will appear on all of your campaign management screens. The Conversion Rate and Cost/Conversion columns give you a quick overview of how your campaigns are doing, but they don't include any of the advanced statistics available through your Report Center.

The Conversion Rate is the percentage of clicks that become conversions. Cost/Conversion is the cost you've accrued over the time period which you're viewing, divided by the number of conversions you received as a result of those clicks. This data will give you a quick overview of how well your clicks are converting, and the average cost of those conversions.

The conversion tracking statistics available in your AdWords account will provide the data you need to improve your ROI. Statistics are available both at the ad group level and via the Report Center.

Your ad group summaries will include conversion rate and cost-per-conversion data. Again, conversion rate is a basic percentage, highlighting the percentage of clicks you received that resulted in a conversion. Your cost-per-conversion number represents the total cost of clicks for that campaign or ad group, divided by the number of conversions. This number will help you to quickly evaluate your ROI for the ad group as a whole.

Your Report Center gives you detailed and specific conversion tracking information. Generating a custom report will give you access to all of your conversion statistics, including the number of transactions and your cost-per-transaction. See the Reports lesson to learn more.

A Custom Report enables you to evaluate keywords based on performance for each transaction type. Even seemingly relevant keywords may not provide the ROI you expect, so careful evaluation of the actual conversion and transaction data is essential for optimizing your campaigns.

After selecting the relevant conversion tracking fields for your report, you can start evaluating your account's performance. Conversion rate and cost-per-conversion are important statistics to monitor, but each individual conversion can lead to multiple transactions as users shop for various products on your site or return later to make additional purchases. Consequently, your transaction and cost-per-transaction statistics can prove even more valuable, since acquiring regular customers is more valuable than any single conversion. Tracking your transaction statistics can provide valuable insight into the effectiveness of your advertising, as well as the effectiveness of your site and the value of your product offerings.

Advanced Option Conversion Statistics: The conversion tracking statistics in your AdWords account provide data for improving your ROI. When you select the advanced option, you'll receive data based on the unique conversion values you have set.

Improving the conversion performance of low-ROI keywords can help make your advertising budget last. Helpful questions to ask include:

Are the keywords targeted and relevant enough to produce the desired results?

If a keyword is too general, you run the risk of getting clicks to your site that aren't really relevant, and have a lower conversion rate. By narrowing the appeal of your keywords (using tennis racquet instead of just tennis), you'll get more relevant clicks and customers coming to your website.
If the keywords are well-targeted, then is your site hindering your conversion rate?

Taking a prospect directly to the most relevant page on your site can boost your conversion rate. Improving the usability of your site in general by making it easier for prospects to find and purchase your products or services can make a huge difference in your conversion rates.

The Google conversion tracking system has a few limitations. Because the tracking code is JavaScript function associated with a cookie, Internet users who have disabled cookies or JavaScript in their Internet browsers won't be tracked. For this reason, multiplying the number of clicks you have received by your Conversion Rate may not always be an accurate way to calculate the number of conversions you have received, but should be a close approximation. In your reporting, clicks which can't be tracked aren't included in your conversion data.