Instructor: Conversion tracking.
So first things first, what is a conversion?
A conversion is simply any action that is valuable to you
that any customer can take on your website.
Now, a lot of people automatically assume
that conversions can only be sales and purchases.
However, that's actually wrong.
A conversion can be anything that is valuable to you
and your business.
So that could be things like sales, phone calls,
form submissions, and so on.
And conversions are super valuable,
as they let you know how effective your ads are
in regards to reaching your goals and targets,
whether that is generating a sale for every $50 spent
or acquiring a new client for every $100 spent.
If you don't track conversions,
you will literally have no idea
on how effective your ads are.
So what are the main benefits of tracking conversions?
Well, there's really two main benefits.
And before we get into them,
let's just clarify the main goal
of running Google Ads in the first place.
The main goal for everyone who's running Google Ads
should be to generate more revenue and more money.
Whether you're running ads to a free ebook or a free signup,
it doesn't really matter as you're most likely
trying to convert that person to buy one of your products
later on down the line from a email campaign.
So the ultimate goal of your ad
is still to generate more revenue and business.
So the first benefit of tracking conversions
is it allows you to boost your ROI.
And for those who don't know,
ROI stands for return on investment.
Now you may be sitting there and thinking,
"Well, my business was making $1,000 per month
before I ran any ads.
I'm now spending $250 on ads every month,
and now my business makes $2,000 every month.
So I'm actually profitable
and I'm making an extra $750 every single month."
Yes, that's correct.
But you don't know exactly where that extra $750
is being generated from.
So if you wanted to scale that up in the future,
you'd literally have no idea where to start.
It would all be guesswork.
And when you're investing your hard-earned money
into Google Ads,
you want to remove any elements of guesswork
to ensure your money is spent most efficiently.
When you have conversion tracking set up,
you can see exactly what time of the day
your sales are being generated,
which ads are performing the best,
which actually leads onto my second point.
Conversion tracking allows you to see
the most important metrics
and will give you all the information you require
for when you want to optimize your account,
or simply scale up things to a whole nother level.
You can view your dashboard and very easily see
what keywords are performing the best
in terms of conversions and not CPCs,
As often you'll find the keywords that have
the cheapest CPCs, so the cheapest cost per click,
and the highest clickthrough rates
are not always the keywords
that are generating the most conversions.
So whilst your CPC and your CTR data looks good,
those keywords aren't actually making you any money.
Now, when you have conversion tracking set up,
you'll know exactly the specific components
of your ad campaign which is generating the profit,
whether that's the key words, the match types,
the ads, the time of the day,
which is going to make your life so much more easier
and will allow you to optimize your account
in the most effective and smartest way possible.
So now we've gone through exactly what a conversion is
and the benefits of conversions.
In the next video, I'm going to go through
the two main types of conversions you can use.
I'll see you there.