Now that I have an Adwords campaign set up, the next step is to measure its performance. Measuring performance is vital. Through improving the ad and website, one can optimize the ROI or return investment (or the effectiveness of the campaign). Here are two tools that make performance measuring a whole lot easier:
Conversion Tracking: This is a free tracking tool from AdWords. Conversions are basically actions (goals) that occur once the ad is clicked. For example, a conversion for a website promoting an app would be the amount of app downloads that occur. So, instead of simply counting how many clicks the ad brought, conversion tracking counts how beneficial the ad was (in meeting goals). AdWords starts conversion tracking after a bit of java code is pasted on the page that displays once a conversion or goal is complete. Conversion tracking is a meaningful way to decipher how effective ads are. It also allows one to put more money into ads that are effective.
Google Analytics: Google analytics is a widely used website traffic and activity tracking tool. It is possible to link Adwords and Google Analytics together thoroughly understand customer behavior. Here are the benefits according to the AdWords Fundamentals Module 3.2:
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