If you want to pay less for your adwords campaigns you should keep a close eye on your conversion rates. By tracking your conversion you will gatter important information about your adwords campaign performance thus allowing you to tweak it when needed.
The conversion rate is the percentage of purchases of your services or products compared to the total number of people who visited your website through the adwords ad. It is of your best interest to keep this number as high as possible. If you have very low conversion rates you need to tweak your campaign and ad settings as soon as possible to get those numbers up. Refining your ads and choosing better keywords are the first step.
Google has set up a tool in your adwords account that allows you to do some exact conversion tracking for each campaign and each ad. This tool shows you exactly what your rates are and which ads are performing well so you can discard the poor performing ones. Look for patterns that can give you an idea of what might be going wrong in a certain campaign or ad so you can modify the poor performing ads.
The more data you gather about conversion the better you will be able to tune your site because the fact that a visitor clicks your ad , lands on your site to see what you have to offer does not necessarily makes it a buyer or a lead. Your site colors, navigation and structure also have a very important effect on your conversion rates.
It doesn’t matter whether you are the worlds number 1 adwords campaign creator if your site is ugly, difficult to use or navigate or is not offering what you stated in the ad you will have very low conversion rates. A fine example of this is the ad that states that a product or service is free only to find out when you go to the site that you have to pay. Make sure that your ad and your website are offering the same thing with the same conditions.