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If you're selling products online, a purchase is a conversion, and the value of this conversion is easy to understand. But selling products online is not the only reason to run an online advertising campaign. You may instead have other, specific business goals, such as:
Conversion tracking allows you to measure the ROI (return on investment) of your advertising campaign by:
These activities are your conversion goals. When people complete your desired activity on your website, it is counted as a conversion.
For conversion tracking to work, Microsoft Advertising needs to be able to collect data from your website. This requires Universal Event Tracking (UET).
ROI measurement: By adding the UET tag tracking code to your website, you can report what people do on your website back to Microsoft Advertising. Then, by defining conversion goals, you can measure if and how many times people perform the actions on your website. You will then be able to answer questions such as "Which ad campaigns, ad groups, ads, and keywords are most effective in driving conversions?" and "What is the return on investment of my advertising dollars?"
ROI improvement: Not all keywords are equal. But if you know which keywords bring you the most business and which ones don't, you can make smarter investments in those keywords and avoid the unhelpful ones altogether, thus improving their ROI. Research shows that very few users convert on their first visit. Remarketing in paid search allows advertisers to optimize their campaigns to users that have previously visited their websites.