AdWords Conversion Tracking – The Ultimate Guide

Google AdWords

Rule #1: Start using AdWords Conversion Tracking Today

Rule #2: Know What Conversions To Track in AdWords

I am shocked that even after so many years, time and time again I see lots of new AdWords customers that do not use AdWords Conversion Tracking.

Why do so many new AdWords users not do what it takes to succeed?

I am not sure but let me try to help by further emphasizing the importance of using the AdWords Conversion Tracking.

Every AdWords advertiser will have a sales funnel that looks something like this:

Your AdWords Account gets 100,000 impressions and with a click-through-rate of 5% you end up with 5,000 visitors to your site.

You manage to have a sign-up rate of 20% and capture 1,000 leads of which 50 end up buying your product.

However, just knowing these figures at the aggregate level is NOT enough!

To succeed with AdWords you MUST know your sign-up rate and conversion rate at the campaign, ad group, and keyword level. Without this information you will NOT stand any chance of thriving in AdWords.

A lot of people always ask me… what sign-up rate and conversion rates can I expect. I will give you some rules of thumb that we have learned over the past few years.

Sign-up Conversion Tracking Rates in AdWords Example: For information / software products where your initial goal is to just build a list via free reports, free trials, etc.

* A signup rate of 30%+ is great * A signup rate of 20%+ is good * A signup rate of 10%+ is ok * A signup rate of <10% is bad

The actual results will vary greatly by keyword, by market, and by your landing page. However, if your goal is to first build a list (capture a lead) then the above is a good rule of thumb. Unless your signup rate is above 10%, it will be very hard to make any money via AdWords.

Once you build a list, here are some benchmarks on conversion rates for your list that you can expect.

* A sales rate (sales / sign-ups) of 20+% is fantastic * A sales rate (sales / sign-ups) of 10+% is very good * A sales rate (sales / sign-ups) of 5%+ is good * A sales rate (sales / sign-ups) of 3%+ is ok * A sales rate of (sales / sign-ups) of <3% is bad

Sales Conversion Tracking Rates in AdWords Example: For information and / or software products where you goal is to instantly go for a sale without building a list.

* A conversion rate of 4%+ is fantastic * A conversion rate of 3%+ is great * A conversion rate of 2%+ is very good * A conversion rate of 1%+ is good * A conversion rate of 0.5%+ is ok * A conversion rate of <0.5% is bad

Please not that our examples are based on selling personal development and Internet marketing software and information products. The individual results will vary sharply but these are just some general metrics you might find useful.

A few more important points: What should you track in AdWords Conversion Tracking? Sign-ups or Sales?

The answer is obviously both but in Google’s interface they will only show you one conversion metric. To get to the other conversion metrics you will need to dig deeper and use the Google reports. Personally, I always use “sign-up” tracking as my most wanted response on all of our PPC campaigns.

Why? Because I can innovate much faster. Lets revisit the sales funnel.

As you can see, by the time I get to 50 sales, I will have already gotten 1,000 sign-ups!

Since I can only optimize my ads and my keyword bids after I have collected enough data for the results to be statistically significant, I can optimize 20 times faster (1,000 sign-ups vs. 50 sales) by focusing first on sign-ups.

This gives us a competitive advantage because we can split test our ads and adjust our keyword bids much faster than someone that only tracks sales.

So, if you have not started using the AdWords Conversion Tracking, you can get started in just 5 minutes.

To continue learning about AdWords check out: www.TheComingAdWordsWar.com www.AdWordsSystemExposed9.com

12 Comments

  1. 23 July 08, 7:58am

    ok

  2. 23 July 08, 7:58am

    ok

  3. 23 July 08, 11:47am

    Great entry. I never really knew what a decent signup rate was, but this makes it clear.

  4. 23 July 08, 11:47am

    Great entry. I never really knew what a decent signup rate was, but this makes it clear.

  5. Ronnie
    04 August 08, 12:25am

    What about affiliates promoting products for other merchants who may not allow pixel tracking? Are there other free alternatives?

  6. Ronnie
    04 August 08, 12:25am

    What about affiliates promoting products for other merchants who may not allow pixel tracking? Are there other free alternatives?

  7. 08 August 08, 2:57am

    [...] depends on the industry. I wrote a really long blog post answering your question here. AdWords Conversion Tracking – The Ultimate Guide | MindValley Labs Internet Marketing Blog Question for the experienced members, am I allowed to link or should I copy and paste my answer? [...]

  8. 08 August 08, 2:57am

    [...] depends on the industry. I wrote a really long blog post answering your question here. AdWords Conversion Tracking – The Ultimate Guide | MindValley Labs Internet Marketing Blog Question for the experienced members, am I allowed to link or should I copy and paste my answer? [...]

  9. 26 December 10, 7:55pm

    My new year can be better being aware of that!

  10. 26 December 10, 7:55pm

    My new year can be better being aware of that!

  11. 26 December 10, 8:13pm

    All of people next year can be brighter knowing this!

  12. 26 December 10, 8:13pm

    All of people next year can be brighter knowing this!

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