I have now been running PPC Campaigns through Google, Yahoo and other sponsored search networks for some years and still it stuns me whenever I see a prospect come to me that is not utilizing any sort of conversion tracking on their account.
So what makes conversion tracking so important?
How can you optimize any type of sponsored link account without any conversion tracking inserted? Which parts of your account is returning the sales or leads? Which parts are not? What keywords work and how many ads deliver? These are all questions that are impossible to answer without it!
In short without the tracking you will be making assumptions and using guess work as to what’s returning investment and more than likely (as I have seen in many campaigns) wasting vast amounts of money.
If you are selling a widget that returns a gross profit of £10 per item then this needs to be the figure that you bench mark to work out your Cost Per Acquisition.
If you are then paying £0.50 per click and 1 in 10 buy from you this has cost you £5 in Google clicks to make that sale and your CPA (cost per acquisition) becomes £5.
From here you can see the validity of the ad spend. Each sale here makes the user £5 profit and is definitely a route to market that is a worthwhile venture for them.
Installation:
The installation of conversion tracking is a very simple process and one that takes literally 3 minutes ( so please don’t be fooled by large bills from web masters saying this is a half day job it really isn’t!!). All you need to do is to extract the conversion tracking from your account and attach to the relevant page after the call to action has been completed. See this help guide
It is very simple to set up many codes so you can track sign ups as well as physical sales through the site.
Optimization:
Once all of the individual parameters have been worked out as above, you can then begin to optimize your PPC Campaign fully. Pausing out non performing keywords, testing ads to gain the best conversion rate and adding to the account all the time in an attempt to reduce your CPA. This in turn can make your bottom line ROI much better.
So please get your tracking sorted………..
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