Tracking your conversions is one of the most important elements in any PPC campaign. You will not be able to optimize your campaign if you cannot track your conversions accurately.

You have the option of simply using your landing page hits and number of sales from a link to analyze your conversions. But it's also worth looking at the tools Google provide its Adwords users for acquiring conversion data. Here are some tips and guidelines for using Google's conversion tracking tools.

First, you'll need to embed your conversion link using JavaScript. If you are using a shopping cart or other type of setup where the buyer receives a confirmation as part of their checkout process, your best bet is to use some JavaScript code that gets sent back to the Google Adwords tracker.

This tool allows you to track the ads that clicked through and produced a complete conversion; bear in mind that this tool does not allow you to see the number of visitors to the site. Just place the few lines of code into your website, and then access your conversion tracking reports directly on the 'Campaign Summary' page in the Reports Center of Google Adwords.

There are only two conditions for the above method to work and track your conversions accurately. The first is that you should be running approved Adwords ads on your site and the second condition is you should place the code only in your conversion page.

You can verify if the code is working by completing a complete conversion yourself. If you can find out exactly when a user has clicked on your ad and completed the conversion process, you can review your conversion reports within 24 hours and see the click-through on the report summary. Avoid clicking your own ads, as this is a breach of the Google Adwords terms of service contract.

You can still track your conversions if you are using a payment checkout system, like PayPal. PayPal and most other systems offer a conversion confirmation webpage wherein you can insert your Adwords tracking code. You will have a record of all conversions or sales once a customer successfully completes the checkout process.

Authors Sarah Milstein, J.D. Biersdorfer and Mathew McDonald of the book "Google: The Missing Manual", explain that it's also important to determine your total cost-per-conversion over any given campaign period.

This information will tell you the actual costs of generating a sale with your campaign. To calculate this, match the number of conversions with the total cost of campaign for a certain period.