Conversion tracking can help you see how effectively your ad clicks lead to valuable customer activity, such as website purchases, phone calls, app downloads, newsletter sign-ups, and more.
Whether you use AdWords to increase sales, generate leads, or drive other valuable customer activity, it’s a good idea to measure your return on investment (ROI). Knowing your ROI helps you evaluate whether the money you’re spending on AdWords advertising is going to a good cause: healthy profits for your business.
The best way to understand ROI is with the following formula:
(Revenue – Cost of goods sold) / Cost of goods sold
This is a video where you can understand how to use this google tool to track your ad achievements.
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