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What is conversion tracking?

Important

Ensure proper consent transmission for users visiting from the European Economic Area (EEA), the United Kingdom, and Switzerland by implementing Consent Mode or the Transparency and Consent Framework (TCF) with your UET tags to avoid any negative impact on conversion attribution and remarketing segments. This policy reflects the requirements of the EU ePrivacy Directive and the General Data Protection Regulation (GDPR). Learn more

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:

  • Raising brand awareness
  • Generating leads
  • Getting people to sign up for a newsletter
  • Driving app downloads
  • Driving foot traffic to your physical store
  • Maintaining loyalty

Conversion tracking allows you to measure the ROI (return on investment) of your advertising campaign by:

  • Letting you assign a monetary value to the activities people complete on your website after clicking your ad.
  • Counting the type and number of these activities.

These activities are your conversion goals. When people complete your desired activity on your website, it is counted as a conversion.

Important

For conversion tracking to work, Microsoft Advertising needs to be able to collect data from your website. This requires Universal Event Tracking (UET).

Why is conversion tracking important to you?

  • 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.

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