It is beneficial to separate and track your Pay Per Click traffic from Organic in Google Analytics. If you don’t make the effort, PPC and Organic traffic will be lumped together, making it difficult to know how your SEO efforts are progressing.
Once you make the link between Google AdWords and Google Analytics accounts, the tracking will occur automatically. To set this up, simply access the Analytics tab in your AdWords account and then either select Create New or Link to Existing. Once you have done this, all your campaign information, keyword information et cetera will be nicely broken out in your Google Analytics account.
If you previously messed up and selected Create New (when you had an existing account) this can be corrected. You use to have contact Google to have this done manually. This recently changed with this AdWords announcement explaining how you can now un-link and link AdWords and Google Analytics.
In addition to seeing Google (CPC) broken out, you can also have Yahoo (CPC), MSN (CPC), and others broken out in Google Analytics. While tracking additional marketing campaigns in Google Analytics requires a little extra work when you set the campaign up, it’s definitely worth the effort.
Tracking other campaigns is accomplished by editing and adding a tracking code to the end of each of the URLs used in your ads. While adding this “tracking code” stuff may sound complicated or technical, it’s not. But just in case, Google has created a tool that simplifies things. To set these up go to the Google Analytic URL builder , enter the URL of your landing page with the associated campaign information and the tool will generate an updated URL complete with the code . The codes can be placed on any incoming links you wish to track enabling you to track banner ads, paid placements, and so on with your Google Analytics account.
Note: AdWords will automatically appear in your Analytics account as “Google (CPC)”, so using “CPC” (cost per click) as the “Campaign Medium” setting for other Pay Per Click marketing campaigns will make them appear in like fashion, Yahoo (CPC), MSN (CPC).