Google Ads Conversion Server side eCommerce Setup

Why is Google Ads Sales Conversion tracking important?

The main reason for setting up Google Ads Sales conversion tracking is to see how convenient your ads are in terms of customer interactions and conversion goals. Through this conversion tracking, you will be able to:

• Analyze the keywords, ads, ad groups, and campaigns that are performing well and are best for driving conversions into your business.
• Understanding the return on ad spend (ROAS) helps you make a proper strategy and informed decision on the expenses of your next ad campaign.
• Get a clear image of the customer journey before they are converted into buyers.

How does Google Ads Conversion tracking work?

First, you need to implement the Google Ads conversion tracking code on the necessary pages. When a user completes a purchase, this code records the information and sends it back to your Google Ads account. Now setup the conversion in Google Ads and GTM. When a person clicks on your Google Ad and makes a purchase on your website, the tracking code saves the conversion data, which includes the order value, order ID, and the precise ad that prompted the purchase.

This data on the number of conversions, conversion rate, and total income generated by each ad campaign is useful for assessing the success of your advertising initiatives and suggesting areas for improvement.

There are two types of Google Ads Conversion Tracking:

• Basic Google Ads Conversion Tracking: It is the basic method of tracking conversions. You set up a conversion tracking tag on your website, and when someone clicks on your ad and then completes a desired action (e.g., making a purchase or signing up for a newsletter), the conversion is recorded.
• Enhanced Google Ads Conversion Tracking: Enhanced conversion tracking is a more advanced type of conversion tracking with enhanced conversion tracking, you can send additional data to Google along with your conversion tracking tag, such as the email address or phone number of the person who converted.

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Google Ads conversion tracking has lots of advantages, like:

1. Evaluate the effectiveness of your campaigns:

It allows you to determine the performance of your marketing. Conversion monitoring allows you to see how many leads or purchases your ads are generating and use this information to analyze the performance of your campaigns.

2. Optimize your campaigns:

Once you know which campaigns are providing the most website conversions, you can start optimizing them for even greater results. You may, for example, experiment with changing the ad wording, targeting new keywords or audiences, or revising the bidding approach.

3. Determine high-performing keywords and advertisements:

Conversion monitoring allows you to know which keywords and advertisements are resulting in the most conversions. This data is priceless when it comes to optimizing your campaigns. By finding high-performing keywords and advertising you can take wise decisions based on the data.

4. Set attainable goals and benchmarks:

Another advantage of conversion tracking is that it allows you to define realistic marketing goals and benchmarks. You may monitor how your results are trending by analyzing your conversions over time and using this data to create targets for future campaigns

5. Gain knowledge about your customers:

You can learn a lot about your clients by tracking conversions. You might discover, for example, which demographics are most likely to convert, which items or services are most popular, or which landing pages are most efficient. With this knowledge, you can modify your efforts for better ROAS.

6. Recognize the consumer journey:

Conversion monitoring helps you to see how customers engage with your website and advertisements, and how this leads to a conversion. This data can help you better understand the client journey and tailor your campaigns to support each point of the funnel.

7. Make data-driven choices:

Finally, the most significant advantage of conversion tracking is the ability to make data-driven decisions. You can use hard statistics to inform your advertising plan rather than depending on guessing or intuition. This can help you make smarter judgments about your campaigns.

Google recommends enhanced e-commerce tracking along with server-side for more accurate data.

Why? 

Let’s understand it with an example. Say a customer clicks on your Google Ad campaign which you are running to redirect them to a particular product. After arriving on the website the client didn’t make any conversions but rather surfed on the website.

Later on when the customer is returning directly to the website the Google Ads enhanced conversion tag will send the first-party customer data such as an email address, name, home address, or phone number in your conversion tracking tags, hashed, and then sent to Google Ads in its hashed form, where it is then used to match your customers to Google accounts that they were signed into when they engaged with one of your ads.

The Google ads tracking (server side) integration provides various benefits. The data from the user’s browser is not sent to third-party cookies, but rather to a dedicated server/first-party cookie under the control of the organization, which helps to circumvent ad blockers.

Data accuracy is a very important thing nowadays for improving bidding strategy, performance max campaign, and campaign/ads measurement.

Summary
In conclusion, Google Ads Conversion Tracking is a must-have tool for advertisers aiming to maximize their Return On Ad Spend (ROAS) it provides a roadmap to increased ROAS. It lays the groundwork for determining success, fine-tuning campaigns, and making data-driven decisions that result in more efficient advertising strategies and, eventually, higher returns on investment.