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Why conversion tracking is important for your business success

Key take-aways

Conversions, conversions, conversions. We all want them, whether the action you deem valuable is a click, a view or a purchase. Here, you can find out why tracking conversions on your website is a good idea and how it can help you to reach your business goals. If you’re wondering how to evaluate performance by analysing Google Ads data, conversion tracking is a good starting point.

1. What are conversions?

2. Why should I track them?

3. What can I track with conversion tracking?

What is Google Ads?

Google Ads is an advertising service by Google for businesses that want to display ads on Google search results and its advertising network.

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1. What are conversions?

The official definition of a conversion is:

  • An action that's counted when someone interacts with your ad (for example, clicks a text ad or views a video ad) and then takes an action that you’ve defined as valuable to your business

Examples of valuable activity include website purchases, phone calls, app downloads or newsletter sign-ups. The set-up process is different depending on the type of conversion that you’re tracking, so the first step in setting up conversion tracking is to choose a conversion source, or where your conversions come from.

Return on investment

How much profit you've made from your ads compared to how much you've spent on those ads. To calculate ROI, take the revenue that resulted from your ads, subtract your overall costs, then divide by your overall costs: ROI = (Revenue - Cost of goods sold) / Cost of goods sold.

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2. Why should I track them?

There are countless reasons why you should track your conversions, but we’ll focus on three main ones. Firstly, you can measure your advertising success. You can see what your return on investment (ROI) is, and make better informed decisions about your ad spend - making sure not a penny is wasted.

Secondly, you can improve your Google Ads campaigns. This means that, whether you’re measuring clicks on a website, downloads on an app or calls to a store, you can see which keywords, ads, ad groups and campaigns are best at driving valuable customer activity. You can then nurture these to make them even more successful, while also improving any keywords, ads or campaigns that aren’t performing as well.

Thirdly, you can track your conversions to get even more conversions. Tracking conversions allows you to use Smart Bidding strategies (such as target CPA, enhanced CPC and target ROAS) that automatically optimise your campaigns according to your business goals. Optimised ads = more customer activity = more conversions.


Words or phrases describing your product or service that you choose to help determine when and where your ad can appear. The keywords you choose are used to show your ads to people. Select high-quality, relevant keywords for your ad campaign to help you reach only the most interested people, who are more likely to become your customers.

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3. What can I track with conversion tracking?

Different ad types will influence the conversions you want your potential customers to complete. For example, website conversions are different than phone call conversions. Here’s how they differ:

If you want to track multiple conversions from this list, just set up a different conversion action for each type of conversion that you want to track. For example, you can set up one conversion action to track purchases on your website, and another to track calls from your ads.

And that’s an overview of why tracking conversions is essential for you to monitor and understand the performance of your campaigns. Remember, Google Ads isn’t just creating a good ad or campaign - it’s keeping tabs on the activity too.


A click is counted even if the person doesn't reach your website, maybe because it's temporarily unavailable. As a result, you might see a difference between the number of clicks on your ad and the number of visits to your website.

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