What is conversion tracking in Google Ads?

Conversion tracking in Google Ads is a tool that allows advertisers to measure the effectiveness of their ads by tracking specific actions that users take on their website or app after interacting with an ad. These actions are referred to as "conversions," and they could include things like:

Completing a purchase

Signing up for a newsletter

Filling out a contact form

Downloading an app or a file

Adding an item to the cart

To set up conversion tracking, Google Ads provides a unique snippet of code, called a conversion tracking tag, that you place on the relevant pages of your website (like a "Thank You" page after a purchase) or on specific actions that you want to track.

Once set up, conversion tracking helps you to:

Measure Performance: Understand how well your ads are leading to the actions that matter to your business.

Optimize Campaigns: With conversion data, Google Ads can adjust your campaigns automatically to focus on ads that drive more conversions.

Calculate ROI: You can measure the return on investment (ROI) of your campaigns by comparing the revenue generated through conversions against the cost of the ads.

Improve Bidding: Google Ads can use conversion data to help set better bids for your ads, focusing on showing them to users who are more likely to convert.

In essence, conversion tracking helps you understand which aspects of your advertising strategy are working and which need improvement, making it crucial for effective campaign management.