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Understanding Your Google Ad Conversion Data

One thing that many businesses still tend to discount or not understand is their website conversion data. Traffic is great. Nothing happens ‘til somebody visits your website. But at the end of the day, what you’re trying to create is a conversion, not a visit.

So what is a conversion?

In its’ simplest form, a conversion is a sale. If somebody visits your website and purchases something, that is a conversion. However, there can also be other types of conversions. If your business is a service business where someone needs to get in touch with you before purchasing your service, then that contact is a conversion. That could be someone filling out a form on your website or calling you on the phone.

Some metrics you need to understand related to conversions are total conversions, conversion rate and cost per conversion.

Google has muddied the water here a little bit because not all conversions are included in the “conversions” data…but they are all included in the “all conversions” data. So yes, you read that correctly. Google will tell you conversions…and it will also tell you “all conversions.” When you set up conversions in analytics, you can specific that certain types of conversions should NOT be included in the conversions data. And some conversions do not get counted by default. But they ALL get counted as “all conversions.” Clear as mud, no?

Google Ad Conversion Rate Chart

Here is an example to help illustrate. Let’s say you have set up phone calls as conversions. By default, when a person clicks on your ad from their phone, and then clicks the button on the ad to call you, that is counted as a conversion. However, if a person sees your ad on his computer, and then picks up his phone and manually dials the number shown on the ad, that is not counted as a conversion. BUT…it does still show up in the “all conversions” category. So if you have an ad with your phone number, and one person sees the ad on his phone and clicks the call button, but three people see your ad on their computers and then call you, your conversion count would be 1, but your “all conversions” count would be four.

The other metrics I mentioned above, conversion rate and cost per conversion, can also be calculated separately for conversions and for all conversions. Conversion rate is the percentage of your paid search visitors who convert. So if you run an ad and 100 people click the ad, and then 1 person completes a conversion, then your conversion rate is 1%. Continuing with our example above, if we had 100 ad clicks that included a phone number, and one person called from the mobile ad on their phone, and 3 people manually called after seeing the ad on their computers, then the conversion rate would be 1%, but the ALL conversion rate would be 4%.

Cost per conversion is what it costs you to get a conversion. So instead of dividing your conversions by how many clicks it took to get those conversions, you will divide by how much you had to spend to get the conversions. So, again…we got 100 clicks, 1 direct call from a mobile ad, and 3 calls from views of the ad on computers. If we paid $200 for those clicks, then the cost per conversion would be $200 ($200 spent divided by 1 conversion), and the cost per ALL conversions would be $50 ($200 divided by 4 total conversions).

These metrics can be shown for campaigns, ad groups, keywords and ads. Once you have enough conversion data, that’s when things really get interesting because you can then start shifting your budget to the campaigns, ad groups, keywords and ads that are showing the best conversion results. If you look through your list of keywords and you see that one keyword is consistently generating conversions for $50, and another keyword is generating conversions for $300, you might strongly consider pausing the $300 conversion keyword so that more of your budget can flow to the keyword that is giving you the better cost per conversion. This is an oversimplification, but you get the idea. You want to spend your money on the keywords and ads that are generating the best results.

There is a whole heck of a lot more we could talk about as far as how to set up conversion tracking (and just how to manage your Google Ads account in general), but our point today was just to make sure we understand conversion data. If this is an area where you could use some help, please get in touch with Nashville SEO Company / Work Media today. We hold many Google certifications and have been doing this for a long time, so we would welcome the opportunity to work with you.

Contact: Jerry Work
Work Media LLC / Nashville SEO Company
615-375-8793, x. 702
jwork@workmedia.net

104 Masonic Street
Dickson, TN 37055
Email: jwork@workmedia.net
Phone: 615-745-3094