Hello everyone, a very warm welcome to everyone wherever you are in the world; I hope you are safe. I’ll try and do my best to help you out as much as I possibly can with these live sessions and answer any questions or problems you may have with regards to your digital marketing, online presence, Google Ads, YouTube, and so on.
I’m going to show you why conversion tracking is so important, why you need to set these up and how to set it up the right way.
When you go into your Google Ads account, you will go to tools and settings and then conversions and you’ll come to this page…
You then have a choice of categories. You have to decide what is your call to action or your conversion action and this is where quite a few of you may get confused as to what to choose.
The first one is obviously purchasing. If you are selling a product online with an eCommerce website where customers come to your site and they make a purchase, then you choose this one if you are generating leads.
Then the second option, and this is where the confusion for some of you may arise, why would you consider a page view as a conversion? Now if you are targeting a top of the funnel audience, let’s say for example I’m running a video campaign and a display campaign on Google display network and I’m trying to run traffic through to my blog post, which I may have written.
I just want to see how many people click on my ads and come and see that blog post. And from there I can work out whether they were engaged or interacted or did they take the call to action or not. So, you can put in a particular page, a pricing page or a contact page could be another page which may be important to you and your business. A sign up could be a sign up to your E-newsletters or weekly newsletters or anything like that where you can get someone to sign up and you can track the conversions.
When you enter the name for the conversion, make it so that it is meaningful for you, don’t just write down lead because you might have different leads on your website, different forms or different calls to actions. As they’ve said over here, if you are tracking a conversion for the June newsletter signup, then you should make that name as the June newsletter signup or the manager’s job applications or whatever it may be. So we’re just going to call it a simple contact form. Somebody submitted the contact form and got in touch with us…
Here’s where the problem happens: most accounts which I see and come across don’t have any value assigned to the conversion; if you don’t assign a value, you will not be able to see what impact your Google Ads campaign is having on your advertising budget and whether you are making a positive or a negative return on investment.
You have two options over here. For lead generation, you have one. So it says that you’re recommended for lead signups and other conversions. Everyone is recommended for eCommerce websites because the same person can come back to your website and make another purchase ie a further conversion, whereas for leads you just want to keep it to one. In the conversion window, you can decide whether you want to keep it for 30, 60, 90 days or a week. 30 is the average; that is what I use personally. If you are selling a service, which takes a bit of time for someone to convert, then you can also put a value eg 30 days in the view through conversion window. A person may see your ad and not interact with it and they go away from your website, then they come back later and convert, hence we call this a view-through conversion.
If you are tracking a lead or a contact form, you must check this off, otherwise, these conversions will not be included in the conversion column. So you may ask, ‘why do they have this? Why not just include every conversion in the conversions column?’
You may track a conversion, which, let’s say, is someone scrolls to the bottom of the page or visited three pages per session or maybe viewed your video on your website for up to 75% of the video. They are not actual macro conversions or the main conversions; these are micro-conversions. So you don’t want to include that in this conversion tracking. Attribution model – the default is the last click, I personally use the time delay. The way this works is the last click gives all the credit for that conversion to that last clicked ad.
So it’s kind of like, let’s imagine a game of football. The striker always gets the credit for the goal, but the other players who pass the ball around to the striker to score do not get any credit, but that’s not entirely fair, is it?
Do you need to attribute the credits of that conversion ie what led to that conversion? Because if that ball wasn’t passed, the striker would not be able to score. So it depends on how your attribution model is for your business or for your clients. In my humble opinion, the time delay is the most fair one where every ad gets the credit. Time delay is where we can say, ‘in this campaign, these ads are getting the most conversions’, so you can bid more aggressively.
Here’s an example for you – let’s say you got 10 leads and your conversion rate is 30%. So three out of every 10 leads you to get, they convert. You now have three clients. The value per client or order or sales is, let’s say, £1000 each. So, 3 x £1000 = £3000. We are working on the first transaction with you ie the first time the customer has made a purchase.
We’ve now got a total of £3000 as our total value or sales from these three conversions. So the value per lead is £3000 divided by the 10 original leads.
…and that is the number which I’m going to go in here and put in. So every time a conversion happens, in the Google Ads reporting, you’ll be able to see how much money you have potentially made. As long as your conversion tracking and your offline tracking is accurate, you cannot go wrong.
So you make sure that you have something in place for tracking these conversions; it could be just a simple spreadsheet. That’s what we use for our business. We see at the end of the month how many leads we had, how many converted and we work out a conversion rate, and then we work out the average value and we get the value per lead.
I’m just trying to guide you to the right way of setting up this conversion value…
Once you get a customer in, for a lot of businesses, the customer will come back to you again and again, if they’re happy with your service and your products. So what we want to do is to work out the customer lifetime value, usually around 12 months to 24 months. You may have a business that once you acquire a customer they stay with you for many years, for example, car insurance or home insurance, which doesn’t get changed very often, we just auto-renew every 12 months.
So the insurance company does not need to spend any more money on the acquisition of that lead. We are already their client. The insurance company already has a number of clients already coming back, they don’t have any cost per acquisition. So what we need to do is to work out the average customer lifetime value and here’s the game-changer as to how you can outbid and always win in Google Ads against your competitors because your competitors mostly working on just the first time value. They are not working out the customer lifetime value.
A question from Matthias, ‘is it a correct strategy to start with the maximum conversion and after 20 to 30 conversions, switch to manual based upon max conversion data. I would set the CPA accordingly.’
Yes. So what I would always do before you start setting up, using automated bidding or smart bidding, you need to work out your conversions or the cost per acquisition manually. Once you have these numbers, you can see the difference and especially if you are going on smart bidding, this is chalk and cheese! If you give Google a bit of leeway, it’s going to give you some tremendous results and get you some conversions, which you cannot even visualize or dream about because most of these companies or your competitors would be bidding at a low level whereas you are bidding at a higher level. Your cost per acquisition may also be much higher, but in effect, you are telling Google that you don’t mind, you can even afford to pay the higher number (depending on obviously your profitability).
You will discover that you are going to win every time. For example, you are bidding 600 to get the conversion and the rest of the pack are bidding 250. every time you are going to win the impression and you will win that auction, you will probably get that click and Google is going to get you these conversions at a higher price. But your volume is going to increase a lot. So I would say with maximum conversions or any kind of bidding, don’t start with zero data. You need to give the machine some good data to learn to know what you are looking for and then you switch it over. So I would say depending on how much budget you have, if you’ve got tens of thousands of budget, you can pretty much get that conversion data in 10 days or 15 days or so and then switch over. if you’re working with a small budget of a few hundred dollars or pounds, then I would recommend that you wait at least 30 days for maximum conversions and switch it from manual to maximum conversions.
Another question, ‘I spent too much budget, but I don’t get the number one ranking in Google Ads.’ I think you’re looking at the wrong metric! Is your goal just to be number one or is your goal to get conversions??! Because quite often you’ll find the ad rank number 2.5 is converting better than ad rank one, but now Google has taken out that average position. So you don’t know which position your ads are at. So I don’t think you need to look at that number one ranking. Look at the data, look at where you are, as long as you are getting in the top four and you are not losing out on the search impression share.
So here is a really good way to look at it… whether you are losing out in the search impression share or you are losing out on ad rank because your bids are too low, your ad rank will be low and you will lose out again in the auction.
‘How many keywords on average is best for accuracy in terms of marketing and ad spend?’
It’s not the quantity, it’s the quality of keywords. Don’t go on the broad match because that’s where you will find that a lot of your budget is being spent or perhaps wasted. What I tend to do is I download all the keywords and then group them very closely and tightly so that the group of keywords in an ad group are very relevant to that ad. It needs to have the keywords which you are targeting in that ad group.
Another way to set up your campaigns is what we call single keyword ad groups [SKAGs], where there is only one keyword per ad group. You then write the relevant ad. Then as your campaigns are running, you will find in the search term report all the other search credits which are triggering your ad and then you keep on adding them into your account.
another viewer question, ‘I’m from Kuwait and running call only ads. So how do I set conversion of call tracking because it does not work in some countries and Kuwait is also in that list.’
Yes. In some countries, Google call forwarding does not work. So you may need to get third-party apps like CallRail, but, I’ll be doing a session on conversion for phone calls and that’s where over here, a lot of people get confused by calls from ads or calls to a number on your website. I’ll explain to all of you how this can be set up quite easily. Once it’s set up, it can track correctly.
I hope you enjoyed this session and thanks for being with me. I will be hosting these sessions every weekday from Monday to Friday at five o’clock UK time, and feel free to join in. If you can’t join in, this is recorded and it will be on our YouTube channel, so please stay safe and look after yourself and your family and I look forward to seeing you in our next session.
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