Experienced advertisers understand that launching a Google Ads campaign is not enough to successfully advertise on this platform. The ad campaign must be continuously analyzed and optimized. Even if the campaign appears to be running successfully, the user does not have access to accurate information regarding the results of the ad campaign including how many sales and how much revenue the campaign generated. Conversion tracking is the most effective optimization tool Google offers which enables users to identify what happens after a customer interacts with the ad.

What is a conversion in Google Ads

A conversion is an interaction between a user and an ad. For example, conversion is registered when the user views the video or clicks on a text ad and completes an action which has value to a business. The actions include purchasing the product or service, form filling, making a call, or downloading an app. These actions can be defined as conversions.

Types of conversions in Google Ads

As already mentioned, Google allows the user to create a conversion action (customer action which is valuable for advertiser’s business). Advertisers can track multiple actions including the number of sales generated, the amount of calls made, and the number of app downloads as shown in the figure below.

  • Different website actions. There are a variety of website actions which include product or service purchase, newsletter subscription, and form filling.
  • App installations and actions in installed apps. For example, in-app purchases.
  • Phone calls. For example, an individual may call a phone number from the ad.
  • Actions ended in offline. For example, meeting with a client who left their contact information in the form.

Now you understand what a conversion is, it’s time to find out why you need to track them.

What are the benefits of conversion tracking?

Evaluation of ad campaigns' effectiveness

In other words, conversion tracking provides the advertiser with all the necessary information regarding what keywords/ads/group of ads result in valuable actions from the customer’s side. By using this information, the advertiser can estimate ROMI (Return on Marketing Investment) and allocate advertising costs effectively

Smart bidding strategies usage

Conversion tracking enables the use of smart bidding strategies such as target CPA, target ROAS, and optimization. Smart bidding strategies also require conversion statistics gathered beforehand. The minimum number of conversions which allow the use of smart bidding strategies is 30, but the more conversions the advertiser has the better smart bidding works.

Cross-browser tracking

For example, if the customer interacted with the ad using one web browser and made a conversion using a different browser, this can be tracked through conversion tracking. Choose All conversions to generate this statistic.

Conversion tracking in Google Analytics is the best way to optimize ad campaigns. The majority of advertisers use Google Analytics by default as it is the most convenient tool. Nevertheless, Google Analytics must be linked with the advertiser’s Google Ads account in order to exchange data. Google Analytics shares the involvement indicators and goals, whereas Google Ads shares information regarding clicks on ads.

In summary, after linking both Google Ads and Google Analytics accounts the advertiser will be able to optimize their ad campaign with respect to goals set previously. At the same time, it's very important to understand which conversion can be set as the main one. This article will help you to figure it out.

How to set up Google Analytics

First things first, Google Analytics must be set up. Learn how to do it in our article dedicated to this topic.

How to set up goals on Google Analytics

The next step is to set up goals for your business. We have a special article which describes this process in detail.

Smart goals in Google Analytics

Smart goals utilize information such as website visits to identify the most effective goals. Important: To use smart goals, a minimum of 500 clicks must be sent to the selected analytics view during the past 30 days.

Learn how to create smart goals in our special article.

How to link Google Ads and Google Analytics accounts

Guess what? We have a guide for this. Find it here.

eLama, Marketing Specialist