Impressions and clicks only tell half the story when it comes to important terms. Because for every advert there is a product that the advertiser is attempting to sell.
Google Adwords does its job by getting impressions for your advert, and your advert does its job by getting traffic to your website. The final piece of the jigsaw is conversions, the term used to describe a user clicking on the advert and purchasing from the site.
Conversion data is used in two important ways.
- Firstly to determine the conversion rate, the reported conversions (sales) divided by the number of visitors to your website through clicks on your advertisement. The higher the rate, the more visitors make a purchase after clicking on your advert.
- And secondly, the Cost/ Conversion, overall click costs divided by the number of conversions. The lower the value the better, as this figure will illustrate on average how much you pay in advertising for every conversion. The whole point of advertising is to sell, so understanding these two figures will help immensely.