Adwords Secrets - Conversion Tracking

Hi Guys, In this article I want to talk to you about the power of Adwords conversion tracking tool. This is one of those tools that can quite literally turn your online marketing in to a pure profit making machine. It is so effect that is still seen as one of adwords secret features.

Before we begin, Be aware that this is not for beginners, so if you are looking for beginner to intermediate advice, then you can download my FREE Adwords Ebook. This is a beginners step by step guild, with lots of killer tips, tricks and adwords secrets.

OK, Lets get stuck in.

First of all, what is conversion tracking and why should I do it?

Conversion tracking is simply a way in which Google allows you to see which of your agroups and keywords leaded to the a specific action on your website. This action could be - Sign up, Buy or even how many people landed on a specific page. Basically, if you want to know what keyword caused your users to perform a certain action, then this adwords secret is just for you .

The power of conversion tracking.

Lets take a more detailed look in to this, and see exactly what the benefits of using this adwords secret feature is.

Lets us use an example of how we could the Adwords Conversion tracker in the real world. In this example we shall take a look at how we can increase the conversion rate of our signup’s on our website, without even touching any aspect of our website. Which, for any of you trying to build a huge list for yourselves, would know just know important this is.

OK, lets say that we are running 1 campaign with 1 adgroup. We are going to use this as an example, just to keep things simple. Now, Inside your ad group, lets say you are running 100 keywords.

Now, what I’m going to show you next is one of the great features of these Adwords Secrets. How to decrease you spend, and increase your conversions. Which, you should be pretty excited about. :-)

Lets take a look at my own Adwords formulas. These will give you a great understanding of how effective this can be.


For the example below we are going to go with these stats:
Your running 100 keywords
You pay $0.50 per click,
Each keyword get 5 clicks per day.
You get 5 conversion (signups) per day - at this point we don’t know which keywords the conversions came from.
- Thats a total of 500 Clicks per day.

Adwords secret conversions Formulas:

Working out your cost:

Cost per click (CPC) x Total Amount of Clicks for that keyword (TAC) = Cost per Keyword (CPK)
$0.50 x 5 = $2.50 per keyword

CPK x Keyword total (KT) = Cost Per Day (CPD)
$2.50 x 100 = $250 per day


Working out your Conversions:

Total Conversion x Total Clicks / 100 = Conversion rate
5 / 500 x 100 = 1%


TOTAL COST PER CONVERSION:

CPD / Conversions = Cost Per Conversion
$250 / 5 = $50 - Per Leads !!!!!

Recap;
Daily cost = $250
Conversion rate = 1%
Total cost per conversion = $50

Thats a whopping $50 that you are paying just to get some one to sign up to your list.
Believe it or not, There are so many companies out there who actually have no idea how much they are paying, they basically just send traffic to their website, and leave it at that. This is madness. They think that because they are getting 500 visitors to their website per day, that they must be doing well. How wrong could they be?

Ok, so we now know what not to do, lets fix this problem - Fast.

We are gong to look at how to set the Adwords Secret Conversion tracker up shortly. But first, let me demon-straight just how much this one secret tip can save you ,


OK, we are going to use the same figures as above. Only this time, we know exactly what keywords brought us the conversions.


Let say the out of the 100 keywords that we are bidding on, only three of those keywords converted in to a signup.

Keyword 1 - 2 signup
Keyword 2 - 2 signup
Keyword 3 - 1 signup

Total of 5 conversions. Just as before.

Now because we now know which of our Adwords keywords have converted, we can stop running all of the keywords that are costing us money. We shall basically turn them off.
So, this formula below, is only running the 3 keywords, instead of 100 keywords.


Adwords Secrets - Conversion Tracking formula:

Working out your cost:

Cost per click (CPC) x Total Amount of Clicks for that keyword (TAC) = Cost per Keyword (CPK)
$0.50 x 5 = $2.50 per keyword

CPK x Keyword total (KT) = Cost Per Day (CPD)
$2.50 x 3 = $7.50 per day


Working out your Conversions:

Total Conversion x Total Clicks / 100 = Conversion rate
5 / 15 x 100 = 33.3%



TOTAL COST PER CONVERSION:

CPD / Conversions = Cost Per Conversion
$250 / 5 = $1.50 !!!!

Recap;
Daily cost = $7.50
Conversion rate = 33.3%
Total cost per conversion = $1.50


Compared to before:

Daily cost = $250
Conversion rate = 1%
Total cost per conversion = $50


What would you rather?

I know what your thinking, that these stats just seem like pie in the sky figures, which they are. But the formula demon-straights just how effective tracking your conversions truly is. If you don’t know what keywords are working, then DON’T run an Adwords campaign. You will only be wasting your money.


Getting set up:

Finally - Now can take a look at how you go about setting up your Adwords Secrets tracking system. This is a really easy process. Just follow the step by step guide below.

1 - Login to your account
2 - Select the ‘Campaign Management’ tab from the top area
3 - Select ‘Conversion Tracking’ from the 2nd tier navigation
4 - Select ‘Create a new action’ found in the green bar.
5 - Name your tracker
6 - Select the type - e.g Sign up or Buy
7 - Select the amount each conversion is worth to you
8 - Select you language and security level - Normally leave as is.
9 - Choose your text format and background colour - Normally leave as is.
10 - Click ‘Save action and Get Code’
11 - copy and past the code on to the web page that follows on from the action.
e.g - Thank you for signing up.

And that is it. You now have a system where you can track exactly what keywords convert in to sales or signups.

Once you have enough data, delete the keywords that do nothing. Even if they do bring you a lot of traffic. You only want conversions, not hits.

Thank you for reading, and I hope that you never fall in to this pitfall, now you know how to get out of it. This is one of those Adwords Secrets that will help you increase your ROI. So use it!

For even more KILLER ADWORDS SECRETS, download my FREE ADWORDS EBOOK. www.secrets4adwords.com

Thanks for reading.
Kind regards
Jeff Spires

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