In the framework of online advertising, a conversion occurs when a click on an ad translates directly into a user action; such as a purchase, a subscription, a visit to a page or a contact. These actions are called conversions because a customer's click is translated, or converted, into a business.

Google has created a tool to measure these conversions, and make it easier to identify the effectiveness of the AdWords ads and keywords you have defined.

To know which ads and keywords are most effective, Conversion Tracking can help you. This tool shows you what happens after a customer clicks on your ads.

By tracking these actions, you will know which ads, keywords and campaigns generate the most business, allowing you to invest more intelligently in the best performing elements and increase your return on investment (ROI)..

Conversion tracking is useful for your business if you are trying to do the following:

  1. Connect ads and keywords to your business goals: Maybe you want a specific page to receive more views or would like to increase purchases. Conversion Tracking can show you which keywords help you meet those specific goals by connecting them to actions.
  2. Increase your ROI: Not all keywords are the same. However, if you know which keywords are bringing you the most business and which aren't, you can invest more wisely in those keywords and definitely avoid using those that aren't performing well.

Types of conversions

There are two ways to count conversions with Conversion Tracking:

  1. Conversions (1 per click): They include a conversion for each click on AdWords ads that becomes a conversion within 30 days. This means that if more than one conversion occurs after a single click on the ad, conversions that occur afterward will not be taken into account. This metric is useful for measuring conversions that approximate one-time customer acquisitions, such as leads and subscriptions.
  2. Conversions (many per click): Include a conversion every time a conversion is made within 30 days of clicking on an AdWords ad. This metric is useful for measuring important conversions every time they occur, such as purchases.