How does conversion tracking work on Bing Ads?

Conversion tracking in Bing Ads (now known as Microsoft Advertising) helps advertisers measure the effectiveness of their campaigns by tracking specific actions that users take on their website after clicking on an ad. These actions, known as conversions, are typically valuable interactions such as purchases, form submissions, or sign-ups. By tracking conversions, advertisers can gain insights into which ads, keywords, and campaigns are driving desired outcomes, allowing them to optimize their ad strategies for better results.

Here's how conversion tracking works on Bing Ads:
1. Setting Up Conversion Tracking with Universal Event Tracking (UET)
Universal Event Tracking (UET) is the primary tool used to track conversions in Bing Ads.

It involves adding a small piece of code (a UET tag) to your website. This tag collects data on user actions and sends it back to Microsoft Advertising to track conversions.

Steps for UET Tag Setup:
Create a UET Tag: In Microsoft Advertising, you create a UET tag, which is a snippet of JavaScript code that you add to your website.

Install the UET Tag: After creating the UET tag, you need to install it on your website. Typically, the tag is added to all pages of the site, especially those where conversions might happen (such as product pages, checkout pages, or confirmation pages).

Verify Tag Installation: After installing the UET tag, you can use the UET Tag Helper tool to verify that it's working correctly and firing on the right pages.

2. Defining Conversion Goals
Once the UET tag is installed, you define the specific conversion goals you want to track. These are the actions that matter most for your business, such as:

Purchases (e-commerce transactions)

Form submissions (lead generation)

Newsletter sign-ups

Phone calls

Event registrations

App installs (for mobile apps)

There are several types of conversion goals you can create:

Destination: Track when a user reaches a specific page, such as a "thank you" or confirmation page.

Duration: Track how long a user spends on your website.

Pages/Visit: Track how many pages a user visits on your site.

Event: Track specific actions, like button clicks or interactions with specific elements on your website.

3. Tracking User Interactions
After the UET tag is installed and your conversion goals are set, the UET tag tracks user activity on your site.

The UET tag records when a user clicks on your ad and what actions they take on your website afterward. This includes:

Whether they complete a conversion action, such as purchasing a product.

How long they stay on the site.

What pages they visit or whether they sign up for a newsletter.

If the user returns to the site later on a different device (cross-device tracking), Bing Ads can attribute that conversion back to the original click.

4. Analyzing Conversion Data
After conversion tracking is set up, Bing Ads provides detailed reports that show how your campaigns are performing in terms of conversions. You can view data such as:

The number of conversions generated by each campaign, ad group, and keyword.

The cost per conversion (CPC) to measure the efficiency of your campaigns.

The conversion rate to understand the percentage of visitors who completed a conversion.

The total conversion value, if you've assigned monetary value to your conversions (such as sales or lead value).

5. Optimizing Campaigns Based on Conversion Data
Smart Bidding: Microsoft Advertising uses conversion data to help automate and optimize bidding strategies. You can use smart bidding strategies like Target CPA (Cost Per Acquisition) or Maximize Conversions to automatically adjust bids based on the likelihood of conversions.

Adjusting Ads and Keywords: Based on conversion performance, you can tweak your ads and keywords. For example:

Increase bids for high-performing keywords that drive conversions.

Pause or refine ads and keywords that aren't converting well.

Audience Segmentation: You can segment users based on conversion data (location, device, demographics, etc.) to target users who are more likely to convert.

6. View-Through Conversions (Attribution)
Bing Ads also tracks view-through conversions, which occur when a user sees an ad but does not click on it, yet converts later on. This type of conversion helps measure the effectiveness of display and remarketing ads that might have influenced a user's decision.

Attribution Models: Bing Ads supports different attribution models, allowing advertisers to understand how various touchpoints contribute to conversions. These models include:

Last Click: The last touchpoint before the conversion is credited.

First Click: The first touchpoint that leads to a conversion is credited.

Linear: Credit is distributed evenly across all touchpoints.

Time Decay: More recent touchpoints are given greater credit.

Position-Based: A set percentage of the credit is given to the first and last touchpoints, with the remainder distributed evenly across other touchpoints.

7. Importing and Exporting Conversion Data
You can import conversion data from other platforms, such as Google Ads, into Bing Ads using the Import Google Ads Conversions feature.

You can export your conversion tracking data for further analysis in Excel or other tools.

Key Benefits of Conversion Tracking in Bing Ads:
Improved Campaign Efficiency: Conversion tracking enables you to optimize your campaigns based on what's working, increasing the likelihood of achieving your advertising goals.

Increased ROI: By understanding which ads and keywords lead to valuable conversions, you can reallocate your budget to the best-performing elements, improving return on investment (ROI).

Better Decision Making: Conversion tracking provides actionable data that helps you make informed decisions about bidding strategies, keyword selection, and audience targeting.

Conclusion
Conversion tracking in Bing Ads works by using the UET tag to track user interactions on your website and then reporting back to Microsoft Advertising. By defining specific conversion goals, you can measure the actions users take after clicking on your ads, and use that data to optimize your campaigns for better performance, higher ROI, and more effective decision-making.