Conversion tracking involves placing a cookie on a user's computer when he/she clicks on an ad. Then, if the user clicks on your ad and reaches one of your conversion pages, the user's browser sends the cookie to a Google server, and a small conversion tracking image is displayed on your site. When such a match is made, Google records a successful conversion for you. This information is presented within the Campaign Summary section of the "Campaign Management" tab in your AdWords account.

DEFINITION OF TERMS
# of conversions: A conversion is counted when an ad click leads directly to a user taking an action on your site. Multiple conversions from a single ad click are counted only as one conversion.

Average value: The total value of all conversions divided by the total number of conversions.

Code snippet: A small piece of HTML and JavaScript code that is inserted into the conversion completion page of your website (the Thank you for your purchase/sign-up/visit page).

Conversion: When a user completes a desired action on your site, such as a purchase or request for information. A conversion is the desired end result from a user visiting your site.

Conversion page: The page on your site that is displayed to confirm the completion of a desired action -- this is generally the Thank you for your purchase/sign-up/visit page.

Conversion types: The type (purchase/sale, signup, page view lead, or self-defined/customized) recorded in the generated code, allowing you greater specificity in your conversion statistics.

Conversion rate: The number of conversions divided by the number of eligible ad clicks. Conversions are only counted on Google and some of our ad network sites. The conversion rate is adjusted to reflect only the ad clicks on which we can track conversions.

Cost / Conversion: The total cost divided by the total number of conversions. This statistic gives you the amount spent per conversion. Conversions are counted only on Google and some of our ad network sites. The cost-per-conversion is adjusted to reflect only the cost of ad clicks on which we can track conversions.

Cost / Transaction: The total cost divided by the total number of transactions. This statistic gives you the average amount spent per transaction. Transactions are counted only for conversions from Google and some of our ad network sites. The cost-per-transaction is adjusted to reflect only the cost of ad clicks on which we can track conversions.

Total value: The total value generated by conversions of a specific tracking type, or tracking label. (Advanced option only.)

Transaction: A single occurrence of a conversion event. Multiple transactions can occur after a user clicks on your ad. For example, if a user clicks on your ad and makes two separate purchases on your site worth US$11 and US$12, you will see a report for one conversion from the ad, two purchase transactions and a total value of US$23. You can also consider a transaction a lead generation if a visitor fills out a form and provides particular information that your business finds valuable.

Value / Click: The conversion value generated per click. For example: Value / Click = Total value (total_value) / Total number of ad clicks (num_clicks). Conversions are only counted on Google and some of our ad network sites. The conversion rate is adjusted to reflect only the ad clicks on which we can track conversions. (Advanced option only.)

Value / Cost: Total value divided by total cost for all ad clicks. If you've entered in your revenue or profit value, this statistic will be equal to your ROI. For example: Value / Cost = Total conversion value (total_value) / Total cost (total_cost). Conversions are only counted on Google and some of our ad network sites. The value-per-cost is adjusted to reflect only the cost of ad clicks leading to conversions. (Advanced option only.)

Download Google AdWords Conversion Tracking Guide

PDF format, 184KB, 18Pages.

CONTENTS
INTRODUCTION TO CONVERSION TRACKING.........................................................................2
PRODUCT DESCRIPTION .......................................................................................................2
OVERVIEW..............................................................................................................................2
DEFINITION OF TERMS...........................................................................................................3
ADDING THE CODE SNIPPET.....................................................................................................4
CONVERSION TRACKING CODE............................................................................................4
REQUIREMENTS .....................................................................................................................5
INSERTING THE CODE SNIPPET ON YOUR WEBSITE..........................................................5
Figure 1: Copy-and-paste the code snippet ..........................................................................5
Examples – Do NOT Use......................................................................................................6
DIFFERENT SCENARIOS FOR INSERTING THE GOOGLE SNIPPET....................................7
Third-party sites ....................................................................................................................7
Dynamically-generated pages...............................................................................................7
Web pages containing frames...............................................................................................7
Secure and non-secure pages ..............................................................................................7
HOW TO CONFIRM GOOGLE CODE SNIPPET PLACEMENT................................................7
Figure 2. Conversion tracking image appears post-conversion. ............................................8
THIRD PARTY SETUP INSTRUCTIONS......................................................................................8
CONVERSION TRACKING & YAHOO! ®STORES..................................................................8
CONVERSION TRACKING & EBAY® / PAYPAL®..................................................................9
PayPal Buy Now Buttons ......................................................................................................9
PayPal Shopping Cart.........................................................................................................10
Recording a conversion value with PayPal .........................................................................11
CONVERSION TRACKING & ACTIVE SERVER PAGES (ASP) ............................................11
Example: .............................................................................................................................12
Example: .............................................................................................................................13
CONVERSION TRACKING & JAVA SERVER PAGES (JSP).................................................13
Example: .............................................................................................................................14
Example: .............................................................................................................................14
Example: .............................................................................................................................15
CONVERSION TRACKING & HYPERTEXT PREPROCESSOR (PHP) ..................................15
Example: .............................................................................................................................16
CONVERSION TRACKING & MACROMEDIA DREAMWEAVER ..........................................17
CONVERSION TRACKING & MICROSOFT FRONTPAGE ....................................................18

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Google's AdWords division is based in Ann Arbor, Michigan, the company's third-largest facility behind its Mountain View, California, headquarters and New York City office. (Wikipedia.org)

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