When talking about Google Ads conversion tracking, it can include countless activities that customers do on your site – purchasing a product, subscribing to a mailing list, making a phone call, completing a form… If you’re tracking different conversions, each probably has a different value for you. This means that you should also be tailor the way how you want to achieve or evaluate this conversion. Are you curious how to do it?
The answer is the conversion value that you set for the different conversions you want to track. Setting them up would mean a number of benefits – for example, to differentiate between conversions or to calculate their total value, not just their quantity.
But step by step…
What is a conversion value?
Conversion value is a numeric monetary value that you assign to a conversion, depending on its impact on your business or how important it is to it.
In order to set conversion value, you need to track conversions on your site. This means you have set up a conversion action for specific sites on which a conversion should be counted, where you specify the value of that conversion. If you haven’t set up conversion actions yet, you can use Google’s simple tutorial to do it.
If you just want to edit the conversion value, you can do this by clicking the wrench icon in the top bar of your Google Ads account and then moving to the Conversions section.
What values can you set?
You always set values for a specific conversion. If your conversions include calls for which you set a conversion value of $ 5 and registrations with a value of $ 20, this means that registrations are four times more valuable to you. Of course, both actions may have the same value for you.
Conversions always appear in your reports in the currency you have set up as billing for your Google Ads. However, you can select a different currency when setting it up.
Of course, the specific transactions that your e-shop customers make are of different value. Therefore, it is necessary to set transaction-specific values for them. For this setup, you may need the help of a web developer who can integrate these values into the transaction tracking tag.
Learn how to set up transaction-specific values here
If an action on your site does not have a monetary value, such as a registration, but you want to measure it, you give it a value without a currency. We call it a key performance indicator (KPI).
Advantages: More optimal bidding and clearer statistics
Setting conversion values brings several benefits, for which we strongly recommend to set them up:
Return on investment (ROI)
Conversion values make it easier to track, measure, and optimize ROI – the value of profit when considering ad spend.
Target return on ad spend (ROAS)
ROAS is flexible bid strategy allows you to increase the value of a specific value according to your goals, while achieving an average target return on ad spend.
The values you set will give you clearer insights through the “Value Conv./Cost” column. Then you can see the performance of specific keywords, ad groups, and campaigns, and change their settings as needed. Plus, you’ll find the total value of conversions on your site, not just the number of conversions.
Flexible bidding strategies allow you to set bids automatically and they ensure their optimization for the performance goals you’ve set for specific campaigns, ad groups, or keywords. Machine learning will then take into account the various details to adjust the auction price for the best result.