Google Ads provides various tracking methods, from online e-commerce to offline, with CRMs or Google’s API. Setting up API integrations can be challenging for small to midsize businesses. The next best option is to use a CRM that integrates with Google Ads…Google recently announced the expansion of CRM partners to include ZOHO.
Beyond automated tracking methods, Google Ads allows users to upload conversion data manually, which is more time-consuming. Using the manual process, either the Google Click ID, or gclid, is used, or enabling Enhanced Conversion tracking can be implemented.
Setting up an offline conversion for Google Ads
Google has several different types of Goals, one of which is “Converted Lead.” This type of goal allows advertisers to upload data and assign the data source to the Goal.
Perhaps the easiest way to do this is to set up a Google Spreadsheet linked to the account in the Ads data sources under “Data manager.” Once set up, it is just a matter of adding records to the sheet. Google Ad will import the data at regular intervals.
The offline data can be set up for gclid or Enhanced Conversions.
Tracking With GCLID
When “Auto Tagging” is enabled at the account level, the gclid is a unique parameter/value appended to the query string for every click on Google Ads. When a form is submitted, the gclid must be passed along with the user information (name, email, phone, etc.). Typically, this is done through a hidden form field and a bit of JavaScript to capture the value and add it to the form field.
As the lead progresses through the sales process, the gclid stays with the record. When the lead reaches a critical point, perhaps a Marketing Qualified Lead or a Sales Qualified Lead, the gclid, along with the conversion date and value (if applicable), is added to the Google Spreadsheet.
Depending on the process, you can also add the sale information. However, for many B2B and high-value B2C companies, the actual sale may take months to close. To provide Google with timely data, it may be advantageous to upload MQLs or SQLs. The sales and marketing teams need to make this decision.
Tracking with Enhanced Conversion With First-Party Data
Google Ad provides an option to enable “Enhanced Conversions.” When Enhanced Conversions is set up, Google tracks not only when a form is submitted but also reads the user inputs from the field and stores hashed data versions. This allows Google to better understand the users who submit forms.
When an offline conversion occurs, the first-party data (email, date, value – if applicable) is uploaded to Google just as the gclid data would be. Google then matches this to the Enhanced Conversion data to connect the value to the users. The uploaded data has to be encrypted using SHA-256 to hash it before uploading.
Google has a couple of options for setting up Enhanced Conversions. Sometimes, Google can auto-detect the appropriate fields, which is pretty straightforward. Alternatively, you may need to “tell” Google which form field matches up to email, name, zip code, etc. The latter requires a bit of site work or the use of Google Tag Manager.
Optimizing Google Ads with Offline Conversions
Google Ad has two levels of Goals: “Primary” and “Secondary.”
The primary goals are used to optimize campaigns. They are the default conversions for optimizing, but can be opted out at the campaign level.
Secondary Goals are more observational. Google Ads does not use them to optimize the programs, but campaign managers can use them to run reports and see how changes to the campaign impact other important events.
When setting up offline conversions, managers must decide if the form submission should be a primary or secondary conversion point. For the most part, the initial form fill should be secondary, and the offline should be primary. If there is a high form-fill-to-sale conversion rate, leaving the form submit as a primary conversion may be acceptable. This is another decision for campaign managers.
With the offline conversion add to Google Ads, you can begin to manage your campaigns based on optimization targets. Setting the targets allows Google Ads’ AI to get the most value for you.
Cost Per Acquisition (CPA)
The CPA is set based on the target value of the lead at the particular stage of the sales process. If you set your MQL as the offline conversion, you can estimate the lead value based on the likelihood that the MQL will become a sale.
For example, if an average sale is worth $1,000 and your MQLs convert to a sale at 75%, the math is simply: $1,000 * 0.75 = $750 target CPA.
Of course, you must also incorporate your actual margin per sale, lifetime value, etc. So, your actual target CPA is usually a bit more complicated than the sale value times the close rate.
Return On Ad Spend (ROAS)
The target ROAS is the best option. It requires that Google Ads receive the actual sale value of each conversion. This allows you to set the amount of sales you want vs the ad spend.
If the goal is to generate $4 in sales for every $1 ad spend, the target ROAS is 4.
Rather than basing targets on averages and conversion rate assumptions, the ROAS method uses the actual sales and advertising dollars to optimize the campaigns.
For a more in-depth discussion on Ad Optimization, we have this article.
Reporting Conversions In Google Ads
Google Ads provides many different metrics related to Conversion Value and Costs. From All conversions to “just” conversions, you can see the value of the results, the ROAS, or the cost per conversion.
While there are many ways to slice and dice conversions, selecting a method you will use consistently is key. Changing how you assess conversions makes it challenging to assess improvements over time. So, pick a method and stick with it unless it proves problematic.
The best way to improve Google Ads performance is to dial in the conversion metrics as close to the sale as possible, using the actual sale and sale value as the best metrics.