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Best way to track Adwords conversions

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# 1
Follower ✭ ✭ ☆

I am aware of two ways to track conversions and behavior made after a user clicks on an Adwords ad. 

 

1) By linking Adwords and Analytics, creating goals in Analytics.  

2) Clicking tools -->  conversions in adwords and pasting a code in my website. 

 

a) How do these two approaches differ, are they interchangeable or are both needed? 

 

Thanks!!

Best way to track Adwords conversions

Badged Google Partner
# 2
Badged Google Partner

Analytics goals report for all traffic sources in the analytics interface. AdWords conversion code conversions only report for AdWords traffic in the AdWords UI. You can create goals in analytics without adding any additional code (and you can report certain actions as goals that you can't with AdWords code). AdWords conversion code has to be added for every conversion action.

 

I don't use AdWords conversions for anything other than phone call conversions anymore. Analytics has so much more data, that is where I spend most of my analysis time. Plus, I can create a goal for anything I want and test it out - Without having to ask my client to go through the effort/cost of installing more code. 

Tom