Tracking the leads you get from Google AdWords campaigns is crucial to understanding if you’re running profitable AdWords campaigns for your business or for your clients. When you track leads you’re able to compare the cost of the lead (CPA… cost per acquisition aka cost per conversion) to the lifetime value you get from that lead (LV… lifetime value).
If CPA < LV then you’re running a profitable campaign.
Meaning, if the cost per lead is less than the lifetime value you get from that lead, then your campaign is profitable.
In order to determine profitability, you have to track leads.
There are three ways to track leads from Google AdWords.