Conversion tracking is a powerful free tool in Google Ads that allows advertisers to measure what happens after a customer interacts with their ads. It helps you understand which keywords, ads, ad groups, and campaigns are most effective at driving valuable customer actions on your website or app.
…Conversion tracking is a powerful free tool in Google Ads that allows advertisers to measure what happens after a customer interacts with their ads. It helps you understand which keywords, ads, ad groups, and campaigns are most effective at driving valuable customer actions on your website or app.
A conversion is any action that you define as valuable to your business. This could include purchases, sign-ups, phone calls, app downloads, or form submissions. By implementing conversion tracking, you gain insights into your return on investment (ROI) and can make data-driven decisions to optimize your campaigns.
The process works by placing a small piece of code called a conversion tracking tag or pixel on your website. When a user clicks on your ad and completes the desired action, this tag records the conversion and sends the information back to your Google Ads account. This data then appears in your campaign reports.
There are several types of conversions you can track: website actions (purchases, sign-ups, page views), phone calls (calls from ads, calls to a number on your website, or clicks on mobile), app installs and in-app actions, and imported conversions from other systems like CRM data.
Key metrics provided through conversion tracking include conversion rate, cost per conversion, and conversion value. These metrics help you evaluate campaign performance and allocate your budget more effectively toward high-performing keywords and ads.
Google also offers enhanced conversions, which improves measurement accuracy by supplementing existing conversion tags with hashed first-party customer data. Additionally, Google Ads provides attribution models that help you understand the customer journey and assign credit to different touchpoints along the conversion path.
Proper conversion tracking setup is essential for using Smart Bidding strategies, as these automated bidding solutions rely on conversion data to optimize bids in real-time for maximum results.
Conversion Tracking Overview - Complete Guide
What is Conversion Tracking?
Conversion tracking is a free tool in Google Ads that shows you what happens after a customer interacts with your ads. It measures valuable actions such as purchases, sign-ups, phone calls, app downloads, or form submissions. By implementing conversion tracking, advertisers can see which keywords, ads, ad groups, and campaigns drive the most valuable customer activity.
Why is Conversion Tracking Important?
Conversion tracking is essential for several reasons:
• Measure ROI: Understand which campaigns generate actual business results, not just clicks • Optimize Bidding: Enable Smart Bidding strategies like Target CPA and Target ROAS that require conversion data • Make Data-Driven Decisions: Allocate budget to campaigns that drive real value • Understand Customer Journey: See how users interact with your business across devices and channels • Improve Performance: Identify underperforming areas and optimize accordingly
How Conversion Tracking Works
The conversion tracking process follows these steps:
1. Create a conversion action in Google Ads defining what you want to track 2. Install the conversion tracking tag (a snippet of code) on your website or app 3. When a user clicks your ad and completes the desired action, the tag fires and sends data to Google Ads 4. Google Ads records the conversion and attributes it to the relevant campaign, ad group, keyword, and ad 5. Conversion data appears in your reports within 24 hours
Types of Conversions You Can Track
• Website actions: Purchases, sign-ups, page views, button clicks • Phone calls: Calls from ads, calls to a number on your website, clicks on mobile phone numbers • App installs and in-app actions: Downloads and specific activities within your app • Imported conversions: Offline conversions from CRM systems or other sources • Local actions: Store visits and local actions from Location Extensions
Key Conversion Tracking Components
• Global site tag (gtag.js): The main tracking code placed on every page of your website • Event snippet: Additional code placed on specific pages where conversions occur • Conversion window: The period after an ad interaction during which a conversion is recorded (1-90 days for clicks) • Attribution model: The rule that determines how credit for conversions is assigned to touchpoints
Conversion Tracking Best Practices
• Track multiple conversion actions to capture the full customer journey • Set appropriate conversion values to measure true business impact • Choose the right attribution model based on your business needs • Use Google Tag Manager for easier tag management • Regularly verify your tracking is working correctly
Exam Tips: Answering Questions on Conversion Tracking Overview
1. Remember the fundamentals: Know that conversion tracking measures actions after ad clicks, not ad performance metrics like impressions or CTR
2. Understand prerequisites: Conversion tracking requires both a global site tag and an event snippet to function properly
3. Know the connection to Smart Bidding: Questions often link conversion tracking to automated bidding strategies - remember that Smart Bidding requires conversion data to optimize
4. Attribution matters: Be familiar with different attribution models (last-click, first-click, linear, time decay, position-based, data-driven)
5. Conversion windows: Default click-through conversion window is 30 days; view-through default is 1 day
6. Privacy considerations: Understand that conversion tracking respects user privacy settings and consent requirements
7. Common exam scenarios: Questions may ask about troubleshooting when conversions are not recording, or which conversion actions are most appropriate for specific business goals
8. Value-based conversions: Know when to use dynamic values versus static values for conversion tracking
9. Cross-device tracking: Understand that Google can track conversions across devices for signed-in users