Duncan, In order to get a conversion rate on your stats, you had to paste the conversion code supplied by Google into your web page? A conversion doesn't have to be a sale, although that's what most of us want, but it can be any desired result you want. For instance, if your goal is to have people email you for information, I would have a separate contact page. Insert the conversion code on the contact page. In this way, when someone enters your site on the main page from Adwords, you will see a stat for clickthrough. If they then move onto your email page (the desired goal) and trigger the conversion code, this will show up as a conversion.
Here is a little info on each item:
Impressions: How many times your ad was shown during a search. Use this number to fine tune your keywords, and to figure out importance of keywords. For instance, the keywords with the most traffic should be the ones highlighted on your site.
Clicks: The number of times someone thought your ad was interesting and clicked onto your site for more information. This number can be an important number to see what wording in an ad works best. If similar keywords have different wording, i.e. Campaign 1, 2 etc., use the words in the ads to boost clicks.
Clickthroughrate: simple math number of clicks divided by number of impressions. A higher percentage tells you that your ad is very relevent for the particular keyword.
Conversions: Number of people who clicked through and made it to the desired goal. Google places a cookie on people who enter through their adwords. When the cookie meets the conversion script on the desired goal page, this is a conversion.
Conversion rate: simple math. The number of people who entered through a click and made it to the desired goal.
I have a Thank You page on my site. It is not linked inward from any page on my site. The only way you can get to the Thank You page is to buy something (the goal). The shopping cart software then automatically redirects you to the Thank You page. Once landed on that page, It sets off the Google conversion or in my case I have shopping.com conversion tracking also. It will set off whichever conversion tracking the cookie tells it to. It also sets off a script that causes a customer satisfaction survey (eopinions.com) to popup so I can get feedback from my custsomers.
Anyway, this is how it works. Maybe I confused you even more? A good way to see this conversion in action, is go to my site,
http://www.discount-leather.net, buy something, then look at the source on the Thank You page. Just kidding.
Kent