The biggest question people ask about their Google AdWords campaign is whether or not they’re making a profit. Google AdWords has two free tools that will help answer your questions.

Return on Investment (ROI)
ROI is the ratio of your costs to your profits. It’s the most important metric advertisers use because it’s based on your advertising goals and reflects what your advertising efforts have on your business. The ROI revolves around conversion: customer actions that you feel valuable with that purchase, sign-up, webpage visit or lead.

Conversion Tracking
A conversion is when users completes an action on your website, like buying something or requesting additional information. Tracking your conversions will allow you to figure out the number of purchases made and the revenue that results from your Google AdWords advertising campaign.

Google Analytics
Google Analytics allows customers to interact with your website. It’s a free web analytics that provides in-depth reporting on your website usage and online marketing activities. This will help you in a lot ways:

  • Improve your AdWords performance.
  • Improve your website’s design and effectiveness.
  • Identify visitor preferences and what they do on your site.
  • Track which websites and search engines direct users to your site.