Calculating the exact ROI for Google AdWords campaigns is crucial to the campaign success and we implement AdWords Conversion Tracking on all campaigns and use this as the basis for ROI calculations.

Conversion tracking will help you measure leads, sales or other actions on your website. Use this information to make more profitable advertising decisions. Track which keywords and campaigns are contributing to your online marketing ROI and adjust your bids and targeting accordingly.

An AdWords conversion occurs when someone clicks on your AdWords ad and performs a behaviour on your website that you recognise as a completed sale or collected lead. Conversions can include the purchase of a digital camera, a visitor submitting their contact information for an insurance quote, or a prospective buyer downloading a white paper about your company’s software capabilities.

The conversion rate listed in your account is the number of conversions divided by the number of ad clicks. Conversions are only counted on Google and some of our Google Network partners. The conversion rate is adjusted to reflect only the ad clicks on which we can track conversions.

Another important term to understand when tracking conversions is ‘transaction.’ While a conversion represents somebody coming to your site through AdWords and making a purchase, the transaction represents the purchase or desired visitor action itself.