Enhanced Conversion Tracking for Google Ads – The Ultimate Guide

In today’s fast-paced digital advertising landscape, accurately tracking and measuring conversions is more important—and more challenging—than ever before. As traditional tracking methods like third-party cookies face increasing limitations, businesses must adopt innovative solutions to maintain the effectiveness of their advertising campaigns.

Google Ads Enhanced Conversion Tracking (ECT) leverages first-party data to improve the accuracy of conversion tracking, enabling businesses to optimise their advertising efforts more effectively. This technology not only addresses the gaps left by standard tracking methods but also enhances your ability to optimise for lead quality.

In this guide, we’ll explore what Enhanced Conversion Tracking is, how it works, and why it’s an essential component for any business looking to optimise its digital advertising strategies in an evolving landscape.

Google Ads Tags Incluing User Provided Data Event

Google also offers two types of Enhanced Conversion Tracking:

  • Enhanced Conversion Tracking for Web focuses on improving the accuracy of leads recorded online as conversions, filling in gaps that might be missed by the standard Google Ads online conversion tracking tag.

  • Enhanced Conversion Tracking for Leads is specifically designed to optimise for events later in the sales cycle, such as identifying qualified leads and recognising converted leads (customers).

Enhanced Conversion Tracking For Web

Google Ads Enhanced Conversion Tracking enables you to capture more comprehensive conversion data by leveraging first-party customer information. Unlike standard Google Ads conversion tracking, which relies on third-party cookies and other tracking technologies increasingly being blocked or deleted, Enhanced Conversion Tracking uses first-party data to complement the third-party Google Tag (tracking script).

This first-party data includes email addresses or phone numbers provided by customers during interactions with your website, such as completing a lead form. Before Google processes this information, it is hashed—converted into a secure string of characters. It is then matched with Google accounts, Chrome browsing histories, and Gmail to more accurately attribute conversions to your ads.

Enhanced Conversions Web Google Ads

The Benefits of Enhanced Conversion Tracking

Implementing Google Ads Enhanced Conversion Tracking offers several compelling benefits that can significantly improve your advertising effectiveness. By leveraging this advanced tracking method, you can achieve enhanced accuracy, better attribution, increased ROI, and stronger compliance with data privacy regulations. Let’s explore the key reasons why Enhanced Conversion Tracking is essential for your campaigns.

Improved Measurement & Accuracy in Conversion Data

With the decline of third-party cookies, relying solely on traditional Google Ads Online conversion tracking methods can lead to incomplete data. Enhanced Conversion Tracking helps fill in these gaps by using first-party data, ensuring that your conversion data is more comprehensive and reliable.

Better Attribution

Enhanced Conversion Tracking provides more accurate attribution by matching hashed customer data with Google’s records. This means you can better understand which ads and keywords are driving conversions, allowing for more informed optimisation decisions.

Increased ROI

With more accurate data, you can fine-tune your campaigns to focus on the strategies that deliver the best results, ultimately leading to a higher return on investment (ROI).

Data Privacy and Compliance

In a world increasingly focused on data privacy, Enhanced Conversion Tracking is a solution that allows advertisers to track conversions while respecting user privacy. By using first-party data and secure hashing methods, this feature aligns with major data protection regulations like GDPR and CCPA, ensuring that your marketing efforts remain compliant while still effective.

Enhanced Conversion Tracking Google Tag Manager Ads

Enhanced Conversion Tracking for Leads (CRM Funnel Events)

Enhanced Conversions for Leads is a feature in Google Ads that improves the accuracy of offline conversion tracking for Google Ads, particularly for businesses that generate leads online but complete sales offline using CRM sales stages. 

Enhanced Conversions for Leads allows advertisers to track conversions that happen offline and attribute them more accurately to Google Ads campaigns
The process works as follows:

  • A user clicks on an ad and fills out a lead form on the advertiser’s website.
  • The user’s first-party data (e.g., email address) is hashed and sent to Google Ads.
  • Later, when the lead converts offline (e.g., purchases of your service), the advertiser uploads the hashed lead information to Google Ads.
  • Google matches this data to the original ad click, closing the loop on the conversion process.
Benefits:

  • Improved Accuracy: It provides a more complete picture of the customer journey and lead quality.
  • Better Performance: By identifying high-quality leads, it enables more effective bidding strategies and campaign optimisation.
  • Privacy-Friendly: It uses hashed data, maintaining user privacy while improving tracking capabilities.
Implementation Methods:

There are three main ways to set up Enhanced Conversions for Leads:

  • Google Tag Manager: For those already using GTM for conversion tracking.
  • Google Tag: For those with conversion tracking implemented directly on their page.
  • Google Ads API: For more flexibility and control over data.
Best Practices

When implementing Enhanced Conversions for Leads:

  • Choose the right conversion action, focusing on meaningful mid-funnel steps.
  • Thoughtfully estimate conversion values using CRM data on customer lifetime value or average order value.
  • Manage the transition carefully, allowing for an adjustment period before optimising bids based on the new data.

By leveraging Enhanced Conversions for Leads, advertisers can gain more accurate insights into their ad performance from offline sales cycles.

Enhanced Conversion Tracking For Leads Google Ads

How Does Google Ads Enhanced Conversion Tracking Work?

The process of setting up and using Enhanced Conversion Tracking involves several key steps:

Data Collection

When a user interacts with your website (e.g., filling out a form or making a purchase), first-party data such as email addresses or phone numbers is collected.

Data Hashing

This collected data is then hashed using the SHA-256 algorithm, a one-way cryptographic function that transforms the data into a secure string of characters.

Data Matching

The hashed data is sent to Google, where it is matched against Google accounts. If a match is found, the conversion is attributed to the appropriate ad interaction.

Conversion Reporting

Once the match is made, the conversion data is recorded in your Google Ads account, allowing you to see which ads are driving results.

Setting Up Google Ads Enhanced Conversion Tracking

Setting up Enhanced Conversion Tracking involves a few technical steps, but it’s relatively straightforward. Here’s a step-by-step guide:

Step 1: Enable Enhanced Conversions

  • Log in to Your Google Ads Account: Navigate to the “Tools & Settings” menu and select “Conversions.”
  • Select the Conversion Action: Choose the conversion action you want to enable Enhanced Conversions for and click on it.
  • Enable Enhanced Conversions: In the conversion action settings, toggle the option to enable Enhanced Conversions.
Step 2: Implement the Tracking Code
 

Make sure the Google Tag is installed on your website. This can be done manually or through Google Tag Manager. (see Tag manager implementation steps below)

Step 3: Automatically Hash the Data

The data collected by your website is automatically hashed before it is sent to Google. This ensures that your customers’ data remains secure throughout the process.

Step 4: Test and Verify

 

  • Use Google’s Tag Assistant Tools: Verify that the Enhanced Conversion Tracking is set up correctly.
  • Check Your Conversion Reports: Ensure that Enhanced Conversions are being recorded in your Google Ads account.
Enhanced Conversion Tracking Tag Google Tag Manager Ads

Using Google Tag Manager For Implementation

If you’re using Google Tag Manager, you can use automatic or manual setup depending on how your website coding has been done. 

Automation Configuration:

Create a New Variable: In Google Tag Manager, navigate to Variables, create a new User-Defined Variable, and configure it to collect user-provided data automatically.

Configure a New Tag: Set up a conversion tag in Google Tag Manager, link it to your newly created variable, and set the tag to trigger on all relevant forms.

Preview and Test: Use the preview mode in Google Tag Manager to test your setup, ensuring everything works correctly before going live.

Publish: Once satisfied with the setup, publish your changes in Google Tag Manager.

Manual Configuration:

Create a new tag in Google Tag Manager and select “User Provided Data” Tracking” as the tag type. 

Select manual configuration by updating variables from the data layer. If you are an e-commerce site, these will already be available within the data layer as variables.

Enhanced Conversion Tracking Manual Variable Google Tag Manager Ads

Best Practices for Google Ads Enhanced Conversion Tracking

To get the most out of Enhanced Conversion Tracking, follow these best practices:

Ensure Data Accuracy

Make sure that the first-party data you collect is accurate and complete. Inaccurate data can lead to poor matching rates and less effective conversion tracking.

Use Google Tag Manager

If you’re not already using Google Tag Manager, consider implementing it. It simplifies the process of managing and updating your tracking codes.

Regularly Review Your Setup

As with any tracking implementation, it’s essential to review your setup regularly to ensure everything is functioning correctly and that you’re capturing all necessary conversions.

Maintain Customer Privacy

Always inform your customers about how their data will be used and ensure that your data collection practices comply with relevant privacy regulations, such as the GDPR.

Enhanced Conversion Tracking Form Trigger Google Tag Manager Ads

Setting Up Enhanced Conversion Tracking for Leads Using Zapier

Enhanced conversion tracking is vital for gaining deeper insights into how leads from Google Ads convert through various stages, particularly when conversions occur offline or beyond the immediate reach of typical web tracking methods. Using Zapier to automate and refine this process can significantly streamline how conversions are tracked and attributed back to specific ads, providing a more accurate measure of your advertising ROI. Here’s how to set up enhanced conversion tracking for leads using Zapier:

  1. Integration Preparation: Begin by ensuring that your Google Ads and CRM systems are fully integrated with Zapier. This integration is crucial for automating the data transfer necessary for tracking conversions.

  2. Zap Setup: Create a new Zap which involves Google Ads as the action step. The trigger will depend on where the conversion data (like lead form submissions or closed deals) is initially recorded—commonly your CRM system.

  3. Selecting the Identifier Source: In your Zap configuration, set Google Ads Click ID (GCLID) and the lead’s email address as the conversion user identifiers. These fields are essential for enhanced conversion tracking, as they allow Google Ads to accurately tie conversions to the specific user and ad interaction.

  4. Configuring Trigger Events: Define what constitutes a conversion by selecting the appropriate trigger events in your CRM. For example, this could be when a lead status changes to ‘Qualified’ or when a deal is marked as ‘Won/Converted/Customer’.

  5. Mapping Data Fields: Carefully map the data fields from your CRM to Google Ads. This typically includes the conversion name, GCLID, conversion time, and possibly a conversion value if applicable. Ensure these fields are correctly formatted and aligned with the data requirements in Google Ads.

  6. Testing and Activation: Before fully implementing the Zap, conduct thorough tests to ensure data is accurately captured and sent to Google Ads as expected. Adjust any settings as necessary based on the outcomes of these tests.

  7. Monitoring and Optimisation: Once the Zap is active, continuously monitor the performance and accuracy of your conversion tracking. Use the insights gathered to optimise your ad spend, targeting, and overall marketing strategies.

By automating enhanced conversion tracking through Zapier, you can achieve a more granular understanding of your marketing funnel and more effectively measure and refine your advertising efforts.

Want to learn more, see our blog posts: Using Zapier with Google Ads Offline Conversion and Using Zapier to Improve Google Ads

Conversion User Identifier Sources Zapier Google Ads

FAQs on Enhanced Conversion Tracking

How does Enhanced Conversion Tracking differ from standard conversion tracking? Enhanced Conversion Tracking supplements standard tracking by incorporating hashed first-party data, allowing for more accurate conversion measurement and attribution.

Is Enhanced Conversion Tracking privacy compliant? Yes, it uses secure hashing to protect user data and complies with GDPR, CCPA, and other major privacy regulations.

Can I track offline conversions with Enhanced Conversion Tracking? Yes, you can upload offline conversion data to Google Ads to track how online ads influence offline sales.

How can I use Enhanced Conversion data for remarketing? Enhanced conversion data allows you to create custom audiences based on user behaviour, enabling more targeted and effective remarketing campaigns.

Can I set up Enhanced Conversions for Google Analytics 4 (GA4)? Yes, Enhanced Conversions can be configured for GA4 to continue tracking accurate conversion data.

Conclusion

In conclusion, Google Ads Enhanced Conversion Tracking is a powerful tool that significantly enhances the accuracy of your digital marketing efforts in an era where traditional tracking methods are increasingly unreliable. By leveraging first-party data, this feature not only improves the precision of conversion measurement and attribution but also plays a critical role in capturing online leads more effectively. Enhanced Conversion Tracking fills the gaps left by standard methods, ensuring that you don’t miss out on valuable conversion data.

Furthermore, it enhances the quality of leads by allowing you to identify and track high-quality prospects more accurately, ultimately leading to more effective marketing strategies and better business outcomes. As data privacy becomes more important, this approach also ensures that your advertising efforts remain compliant while driving meaningful results.

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Liam Holmes

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