What’s Conversion Tracking, and Why Does It Matter?

Conversion tracking is a tool that lets you see what actions people take after they click on your ads. Whether they’re making a purchase, signing up for a newsletter, downloading an e-book, or calling your business, conversion tracking captures it all. By knowing which ads, keywords, and landing pages are driving these actions, you can tweak your strategy and boost your ROI.

Different Types of Conversions You Can Track

In Microsoft Ads, you can set up different types of conversions to track key actions on your site. For purchases, monitor when someone buys something. For sign-ups, track when someone joins your email list or registers an account. If you offer downloads, see when visitors grab free guides or software. You can also track phone calls directly from your ads. Custom conversions let you monitor any other important actions. By tracking these, you’ll gain insights into conversion rates, costs, and values, helping you make smarter advertising decisions.

Setting Up Conversion Tracking in Microsoft Ads: A Step-by-Step Guide

Getting your conversion tracking up and running is straightforward, but it’s essential to do it right. Here’s a simple guide to get you started:

Step 1: Access the Conversion Tracking Tool: First, log in to your Microsoft Ads account. Head to the “Tools” menu and click on “Conversion Tracking” under “Measurement.” This is where you’ll manage everything related to conversions.

Step 2: Create a Conversion Action: Next, hit the “Create Conversion Goal” button. You’ll choose the type of conversion you want to track, like a purchase or a sign-up. Make sure to give it a clear name so you can easily identify it later. If your conversions have a monetary value, such as a purchase worth $50, you can set that value to get a better sense of your ROI.

Step 3: Install the UET (Universal Event Tracking) Tag: The UET tag is a small piece of code that you need to add to your website to start tracking user behavior. In your Microsoft Ads account, go to the “UET Tags” section and click “Create UET Tag.” Name it something relevant, then copy the code snippet. You’ll need to place this code in the header section of your website’s pages. This tag collects data about user interactions, which Microsoft Ads uses for tracking.

Step 4: Verify Your UET Tag Installation: After adding the UET tag, you’ll want to check that it’s working correctly. Use the UET Tag Helper browser extension to verify that the tag is firing on all the pages you want to track. This tool will confirm if your tag is set up right and collecting the data you need.

Nailing Conversion Tracking: Best Practices

To get the most out of conversion tracking, it’s important to follow some best practices. These tips will help ensure your data is accurate and reliable:

Tag All the Right Pages

Make sure your UET tag is installed on every relevant page, especially the ones that confirm a completed action, like a thank-you or confirmation page. If the tag is missing from these pages, you might end up with incomplete data, which can throw off your optimization efforts.

Use Clear Naming Conventions

When you’re setting up conversion actions, give them names that clearly describe what they track. This makes it easier to keep your data organized and understand which ads are driving specific actions.

Keep Your Conversion Settings Up to Date

As your business evolves, your conversion tracking should too. Regularly review and update your settings to make sure they still align with your current goals. For example, if the value of a conversion changes, make sure you update it in Microsoft Ads to reflect the correct amount.

Optimizing Your Ads with Conversion Data

With conversion tracking in place, you can use the data to boost your ad performance. Here’s how:

• Use Conversion Data for Smarter Bidding: Using conversion tracking data, you can tap into automated bidding strategies like Target CPA (Cost Per Acquisition) or Target ROAS (Return on Ad Spend). These strategies work by automatically tweaking your bids depending on how likely a conversion is, helping you get the most bang for your buck with your ads.
• Refine Targeting Based on What’s Working: Your conversion data will show you which keywords, demographics, and devices are performing best. Use this information to refine your targeting—focus on what’s working and consider cutting back on what’s not delivering results. You can also adjust your bids to be more aggressive on high-performing segments.
• Build Custom Audiences and Remarketing Lists: Another way to make the most of your conversion data is by creating custom audiences. For instance, you can build remarketing lists of users who visited your site but didn’t convert. Then, you can target these high-potential leads with tailored ads to nudge them towards completing an action.

Troubleshooting Common Conversion Tracking Issues

Even with the best setup, things can sometimes go awry. Here are a few common issues and tips on how to fix them:

• Dealing with Discrepancies in Reported Conversions: If you notice discrepancies in your conversion data, the first step is to ensure that your UET tag is installed correctly on all relevant pages. Make sure the tag isn’t being blocked by browser settings or ad blockers, as this can interfere with data collection.
• Fixing UET Tag Errors: If your UET tag isn’t firing as expected, double-check its placement on your website. The tag should be in the header section of each page you’re tracking. Use the UET Tag Helper tool to verify the setup and resolve any issues.
• Addressing Conflicts with Other Tracking Scripts: Sometimes, conflicts can arise if you’re running multiple tracking scripts, such as Google Analytics, alongside your UET tag. To avoid these conflicts, ensure that all tags are correctly implemented and that there are no JavaScript errors on the pages.

Going Further with Advanced Conversion Tracking Tips

Ready to take your conversion tracking to the next level? Here are some advanced tips:

Cross-Device Tracking

People usually hop between different devices before they finally make a purchase or complete an action. Cross-device tracking helps you keep tabs on this behavior, allowing you to get a fuller view of the customer journey and make conversion tracking more accurate.

Import Offline Conversions

If your business relies on offline actions, like phone calls or in-store sales, consider importing these offline conversions into Microsoft Ads. This way, you can combine your online and offline data to get a full view of your ad performance.

Integrate with Google Analytics

For a deeper understanding of your ad performance, try integrating Microsoft Ads conversion tracking with Google Analytics. This integration lets you compare data across both platforms, providing a richer set of insights for optimizing your campaigns.

Conclusion

Mastering conversion tracking in Microsoft Ads is key to understanding your ad performance and driving better results. By setting it up correctly, following best practices, and using the data to refine your campaigns, you can maximize your ROI and make every click count. Keep your tracking updated, troubleshoot any issues promptly, and leverage advanced features like cross-device tracking to stay ahead of the competition. With these tips, you’re well on your way to making your Microsoft Ads work smarter, not harder.

Key Takeaway:  Setting up conversion tracking in Microsoft Ads isn’t just something extra—it’s a must if you want to know what’s really making your business grow. By following the tips in this guide, you’ll ensure your tracking is spot on, your data is reliable, and your ads are optimized to perform their best. So, dive in, tweak those ads, and watch your ROI take off!

FAQs

How can I make sure my UET tag is working properly?

Use the UET Tag Helper browser extension to check if your UET tag is firing correctly on your website. It’ll show you if the tag is installed and capturing data as expected.

What’s the difference between Target CPA and Target ROAS?

Target CPA focuses on hitting a specific cost per acquisition, while Target ROAS aims to achieve a certain return on ad spend. Both strategies adjust your bids based on conversion data, but they have different goals.

Can I track phone calls as conversions in Microsoft Ads?

Absolutely! You can set up call conversion tracking by choosing phone calls as a conversion type in your Microsoft Ads settings, which is great if your business depends on phone leads.

How often should I review my conversion tracking setup?

It’s a good idea to review your conversion tracking settings every few months, or whenever your business goals change. Regular reviews help ensure your tracking stays aligned with what you want to achieve.

Can Microsoft Ads track conversions across multiple devices?

Yes, Microsoft Ads supports cross-device tracking, which lets you see when users switch devices during their journey. This helps you understand the full path to conversion and assign credit more accurately.