What are Google Ads Enhanced Conversions? + Setup Guide & Expert Tips

Google Ads Enhanced Conversions boosts conversion tracking accuracy, using hashed first-party data to understand user actions post-ad interaction. Learn how to set up enhanced conversions to improve your return on ad spend (ROAS).

Here, you’ll find:

• What are Google Ads enhanced conversions?
• How enhanced conversions work in Google Ads
• How to set up enhanced conversions for web
• How to set up enhanced conversions for leads
• Why advertisers should use enhanced conversions

If your Google Ads account is only tracking standard conversions, you’re missing out on key opportunities for PPC campaign optimization. With enhanced conversion tracking, Google Ads can improve data accuracy, make better bidding decisions, and drive higher ROAS.

In this article, we’ll cover everything you need to get started, including step-by-step guides to setting up Google Ads enhanced conversions for web and for leads.

What are Google Ads enhanced conversions?

Enhanced conversions build on the Google Ads conversion tags you already have in place by inserting additional first-party data. This feature collects user-provided contact information from prospects who convert after clicking on your ads.

Google Ads then matches this data across other ads the user interacts with on various devices. Because Google uses a hashing algorithm to transfer the data, this feature maintains user privacy while providing deeper insights into how users engage with your ads.

The main goal of enhanced conversions is improving the accuracy of your conversion measurement.

How enhanced conversions work in Google Ads

When you implement enhanced conversions, Google captures the data that prospects input on your website. You can use Google Tag Manager, the Google tag, or Google Ads API to detect personal data like:

• Names
• Home addresses
• Phone numbers
• Email addresses

Note that these conversion tags rely on user-provided data. So, they capture the personal data users provide when filling out a signup form or completing a purchase.

Enhanced conversion tags use a hashing algorithm known as SHA256 to keep user data secure. This process transforms identifying information into a character string.

Google Ads matches this hashed data against its Google accounts database. The platform can then attribute conversions more accurately so advertisers can build retargeting audiences.

Types of Google Ads enhanced conversions

There are two types of enhanced conversions. Each uses a unique setup to capture user-provided data for different purposes.

• Enhanced conversions for web: This option tracks sales and other conversion events on your website.
• Enhanced conversions for leads: This option tracks sales from beyond your website — such as via email or over the phone. It measures offline conversions that result from a website lead.

Enhanced conversions vs. standard conversions

Most advertisers who use Google Ads typically set up standard conversion tracking. This feature monitors leads, sales, and other outcomes that happen after prospects click on an ad.

However, standard conversions don’t capture as much data as enhanced conversions do. When you want to go beyond counting conversions and focus on improved accuracy and return on ad spend (ROAS), use the enhanced version instead.

How to set up enhanced conversions for web

Here is an easy to follow step-by-step guide:

• Confirm Google Ads conversion setup
• Enable enhanced conversions in Google Ads
• Configure Google Tag Manager
• Verify your enhanced conversions setup
• Review the results of your enhanced conversion data

Google offers three setup methods to track enhanced conversions for web. You can use Google Tag Manager, the Google tag, or Google Ads API.

Note that to set up ecommerce Google Ads enhanced conversions, Shopify has a dedicated workflow. Use this guide to create an enhanced conversions Google Ads Shopify link.

Confirm Google Ads conversion setup

First, make sure to implement the conversion you want correctly. Google Ads doesn’t support enhanced conversions for actions imported from Google Analytics.

If your conversion relies on Google Analytics, create an identical conversion in Google Tag Manager instead. Then confirm that it’s firing correctly.

Open the “Goals” menu in your Google Ads Account and select “Summary.” Find the conversion in question.

If the conversion is listed as “Inactive,” click “Troubleshoot” to test it. Follow the steps to trigger a conversion. If the test fails, revisit your Google Tag Manager setup.

Enable enhanced conversions in Google Ads

To enable enhanced conversions, go to “Goals” and open the “Conversions” menu in your Google Ads account. Click “Settings.”

Expand the “Enhanced Conversions” panel. Check the “Turn on enhanced conversions” box. Read the compliance statement carefully and confirm that you’ll follow Google Ads policies.

Next, use the dropdown menu to select a setup method. If you aren’t sure which is best for your account, input your website domain and click “check URL” to see the recommendations.

In this walkthrough, we’ll select “Google Tag Manager.” Click the “Save” button to apply the settings.

Note that you can also switch off enhanced conversions via this panel if the need ever arises. Just uncheck the box to disable this feature.

Configure Google Tag Manager

Open your Google Tag Manager (GTM) account and choose a setup method. You can typically choose from three options, each has pros and cons.

• Automatic configuration: While the automated option is fastest and easiest, it can be less reliable than the other two methods.
• Code installation: Adding a snippet of code to your website requires a little more time and effort, but it provides more consistent results.
• Manual configuration: By far the most technical, this option involves setting up CSS selectors and Javascript variables. It’s the most accurate method but may require data layer variables for websites with frequent code updates.

In this walkthrough, we’ll use the top option. To get started, go to the “Tags” dashboard in Google Tag Manager and find the conversion tag you want to update. Click the pencil icon to edit it.

Check the “Include user-provided data from your website” box. Then open the dropdown menu and select “New variable.”

Choose the “Automatic collection” option. Give it a name and click the “Save” button.

You’ll automatically return to the previous screen. Click “Save” to update the tag. When you set up enhanced conversions, Google Ads automatically begins capturing user-provided data.

Verify your enhanced conversions setup

After completing the setup process, verify that enhanced conversions are property set up. You can confirm the process using Chrome Developer Tools or by checking your Google Ads diagnostics.

To use Chrome Developer Tools, navigate to the conversion page that features enhanced tracking tags. Right click on the page and select “Inspect” from the menu.

Go to the “Network” tab to find the parameters that point to the conversion. You should see a parameter starting with “tv.1~em.” If you don’t, revisit the steps above to confirm and reverify your conversion tracking tags.

Review the results of your enhanced conversion data

Alternatively, use your Google Ads diagnostic report to verify the setup and check the results. The only catch is that you can’t view results until about 48 hours after setup.

Once 48 hours have passed, open the “Goals” menu in Google Ads and go to “Summary.” Open the conversion action you want to verify.

How to set up enhanced conversions for leads

• Enable enhanced conversions for leads
• Configure your Google tag
• Import conversions from ad clicks

Once you know how to set up enhanced conversions, Google Ads makes it relatively easy to configure more types of tracking. With enhanced conversions for leads, Google Ads uses a similar process to the workflow above.

Enable enhanced conversions for leads

From your Google Ads dashboard, click to create a new conversion action. Select “Import” and choose “Other data sources or CRMs.”

From the dropdown list, choose the customer relationship management (CRM) system your business uses to keep track of leads. By setting up HubSpot, Google Sheets, or Shopify enhanced conversions, Google Ads can manage offline tracking and reporting.

Check the “Turn on enhanced conversions for leads” box and review the policy. Then choose a setup method from the dropdown menu and click “Continue.” In this walkthrough, we’ll go with the Google tag.

Configure your Google tag

Next, click to configure your Google tag. First, make sure it’s set to detect events automatically. Then enable the “Form interactions” option.

Check the “Include user-provided data from your website” box. Then confirm how you want to collect user-provided data.

Similar to the workflow for web-based conversions, the setup for enhanced leads tracking includes three options:

• Automatic collection: Allows a manual search for email addresses
• Configuration: Involves designating CSS selectors or Javascript variables
• Image code: Requires adding Javascript code to your website

After selecting an option, click the “Save” button. Then proceed to set up ad click conversion importing.

Import conversions from ad clicks

To import conversions from ad clicks, go to the “Goals” menu in your Google Ads account and select “Uploads.” Click the blue plus icon and select a source from the dropdown menu.

If you’re using this tool to upload data for the first time, click “View templates” to see how to format your data correctly. To sync enhanced conversions data, make sure to include a column for the email addresses or phone numbers collected from your lead form.

Note that you can opt to upload offline conversions once or repeat the process on a schedule. No matter which method you choose, take care to check for errors, especially after the first upload.

You can download an error report from the “Actions” column. Review the spreadsheet, make any changes, and then confirm the results.

Why advertisers should use enhanced conversions

Curious how you can get more from your conversion tracking strategy? Use these expert tips.

Monitor the quality of your conversion data

Without a reliable data source or properly formatted lead templates, you’ll struggle to capture and leverage enhanced conversions data. That’s why Growth Marketer Abhi Bavishi encourages advertisers to pay close attention to their data quality.

“I’m all for using enhanced conversions, primarily because they can boost the accuracy of data. Mistakes? Absolutely. A big one was misconfiguring the setup that dropped our customer acquisition cost (CAC).”

“You need clean, structured data for seamless integration. Tending to data quality is crucial. Don’t rush the setup. Take time, test, then proceed,” advises Bavishi.

Use enhanced conversions to drive more revenue

“Tracking is a vital element to measuring the success of our client campaigns. We’re happy that Google has released enhanced conversion tracking to help provide more accurate conversion tracking data,” explains Rambod Yadegar, President of HawkSEM.

“As we approach a cookieless world, being able to send first-party data from a website directly to Google to measure conversions will help track and improve results.” However, Yadegar recommends taking Google’s conversion tracking feature a step further with Google Ads optimization software.

HawkSEM’s proprietary tool, ConversionIQ, tracks and analyzes conversion data for Google Ads, as well as LinkedIn text ads, Instagram ads, and Facebook retargeting ads. ConversionIQ offers critical insights for improving ad performance and ultimately driving more revenue.

Create more relevant audiences with enhanced conversion data

With data from enhanced conversions, you can create more relevant audience segments in Google Ads. You can create remarketing audiences using your first-party data using Google Ads Audience Manager. Once you implement these audiences, monitor them closely to track results.

“In terms of ecommerce ad performance, we’ve noticed a slow but steady 5% to 15% increase in conversions, with double the performance for remarketing/retargeting campaigns,” explains Tom Golubovich, Head of Marketing at Ninja Transfers.

“We implement Google’s enhanced conversion feature 95% of the time to ensure better accuracy and performance in our advertising campaigns. It’s relatively easy to implement but very complicated to effectively set up for noticeable results. But in either case, it gives you more conversion data and analytics to work with and optimize your ad campaigns for ROI.”

Know when not to use enhanced conversions

Enhanced conversions can provide valuable data when used correctly. But not every conversion action can or should capture enhanced data.

Set up enhanced conversions only for conversions that collect data like a phone number or email. For example, this feature works best for lead generation, email signup forms, and ecommerce purchases. Enhanced conversions isn’t a good fit for conversions like page views and others that don’t involve data collection.

Depending on the region you’re targeting, you may find it helpful to approach this feature with caution. “I personally don’t recommend using Google Ads’ enhanced conversions if the ads will target citizens within the EU or under GDPR regulations (or CCPA). My view on this might change as Google improves their implementation,” explains Kevin Larsen, Web Developer at Norway-based Mediaveien.

Checklist for setting up Google Ads enhanced conversions

Set up enhanced conversions for web

Confirm Google Ads conversion setup

Enable enhanced conversions in Google Ads

Configure Google Tag Manager, Google tag, or Google Ads API

Verify your enhanced conversions setup

Review the results of your enhanced conversions data

Set up enhanced conversions for leads

Enable enhanced conversions for leads

Configure your Google tag or Google Tag Manager setup

Import conversions from ad clicks

Why advertisers should use enhanced conversions

Wondering whether you really need to implement enhanced conversions for your ads? Here are four ways advertisers can benefit from this feature.

More accurate conversion data

When Google matches first-party conversion data against signed-in Google accounts, the platform verifies the data and attributes the results more precisely.

What does that mean for your Google Ads campaigns? You can put more trust in Google Ads data and use the platform’s metrics to analyze conversion rates and optimize campaigns more effectively.

What kind of results can you expect from this feature? When partnering with VIOS Fertility, HawkSEM used enhanced conversions to capture first-party data and improve conversion tracking.

User privacy protection

The more first-party customer data you collect, the more security breaches or data leaks become an issue. While these are valid concerns, enhanced conversions shouldn’t create data privacy concerns.

Google uses hashtag formatting to transfer data in a privacy-safe way. In fact, the SHA-256 algorithm is a cybersecurity standard that also applies to password verification and security certificates.

Data-driven bidding

Whether you run Performance Max, search, or any other type of campaign, Google Ads uses your conversion data to optimize bids. Enhanced conversions provides more accurate data, which allows Google Ads to make better data-driven decisions for smart bidding strategies.

As a result, this feature can drive better campaign performance. And lead to increased ROAS, improved ads performance, and better budget allocation.

Focus on first-party data

Google is moving toward a cookie-less world and plans to eliminate third-party cookies by the end of 2024. So advertisers must track conversions using first-party data.

Enhanced conversions give advertisers a straightforward way to capture and leverage first-party data. As a result, this feature allows advertisers to set up a reliable system that’s relatively future proof for both single and multi-location PPC.

The takeaway

Enhanced conversions is an essential feature for advertisers who need to improve conversion rates, increase ROAS, and run more efficient digital marketing campaigns. From enhanced conversion setup to conversion rate optimization, our team is here to help.

Contact HawkSEM today to book a free consultation with our experienced Google Ads team.