That’s a very good question and honestly one of the most important parts of running Google Ads.

If you don’t set up conversion tracking, you will only see how much money you are spending but you won’t know how much you are earning back from your ads. You won’t be able to tell how many leads, phone calls, or form submissions are coming from your campaigns. It’s almost like driving a car with your eyes closed. You are moving, but you don’t know in which direction.

Conversion tracking gives you real data. It shows which keywords, ads, and campaigns are bringing results. Without it, you can’t identify which part of your budget is working and which part is being wasted.

It also helps Google’s AI learn correctly. When Google sees which clicks are actually converting, it automatically starts showing your ads to more people who are likely to take action. This helps improve performance and lower your cost per lead over time. Without conversion tracking, Google’s AI gets confused, learns from wrong signals, and starts showing your ads to the wrong audience.

Another big reason is business decision-making. Conversion tracking helps you see your real return on investment so you can decide whether to increase your budget, pause underperforming ads, or scale up the ones that bring better results.