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What are Google Ads Enhanced Conversions (and Should You Use Them)?

Written by: Jeremy Feig

Published: 7 January, 2025

Google Ads rolled out enhanced conversions not-so-long ago, and they’re picking up steam. They’re designed to help generate more accurate data and combat cookie deprecation. But is it worth setting them up in your Google Ads campaigns? Let’s explore and find out.

What are Google Ads Enhanced Conversions?

Enhanced conversions are a feature that uses first-party data to improve the accuracy of your conversion tracking, even when cookies or traditional methods may fall short. They work alongside your existing setup, taking in and matching customer data that users provide on your website, such as phone numbers and email addresses. This data is hashed for privacy, then matched against Google’s own database, to better track users on their journey.

How Do Enhanced Conversions Work?

Here’s an example of how it works in the real world: Imagine a user is logged into her Google account on her work computer. She’s searching for gourmet coffee beans and clicks your paid search ad with enhanced conversions, bringing her to your coffee-themed website. She browses a bit but ends up not making a purchase. Later that night, she remembers the site and visits it directly from her phone. This time, she buys coffee beans from your website.

Normally, your Google Ads campaign wouldn’t get any credit for the completed transaction. But because the user’s email address was hashed and sent to Google during the first site visit, it knows who the user is and gives attribution at the time of purchase. This results in better data and more opportunities for optimization.

Pros of Using Enhanced Conversions

Improved Tracking Accuracy: Bridge gaps in conversion tracking caused by cookie restrictions, ad blockers, and other potential obstacles.

Privacy-Focused: Customer data is protected with secure hashing (SHA-256).

Better Attribution: Benefit from clearer insights into the customer journey, improving ad performance analysis.

Supports Cross-Device Tracking: Match customer data across devices for more accurate results.

Improved Data from Trickier Sources: Utilize first-party metrics to tighten up your targeting for Performance Max and broad match campaigns.

Google AI Improvements: By allowing Google to ingest more conversion data, it helps power their AI tools and improve overall performance.

Cons of Using Enhanced Conversions

Setup Complexity: Integration is not simply plug and play, potentially requiring technical implementation or developer assistance.

Some Privacy Concerns Remain: Despite secure encryption, users may raise questions about data handling.

Limited for Non-Google Users: Only works well for customers with Google accounts or within the Google ecosystem.

Potential Compliance Challenges: Must align with privacy regulations like GDPR and CCPA, requiring extra diligence.

It Doesn’t Guarantee Better Results: Just because it’s tracking more accurately doesn’t automatically mean more conversions.

How to Set Up Google Ads Enhanced Conversions

You can set up enhanced conversions via Google Tag Manager, Google Tag or Google Ads API. To begin, you’ll need to log into your Google Ads Account. 

Once in your Google Ads Account:

  • Navigate to “Goals” > “Conversions” > “Settings” > “Advanced Conversions”
  • Check the box for “Turn on enhanced conversions.” You’ll need to agree to the “Google Ads Data Processing Terms” to continue.

 

  • Choose your preferred method of setting up and managing user data. Review the details about each setup option on Google’s Support page for implementation and choose the one that best fits your needs.
  • Once complete, hit Save.
  • Depending on which method you chose, you may need to take additional steps:
  • Validate your implementation by making a test conversion, utilizing Chrome Developer Tools, or via Tag Assistant.
  • After 30 days, you should be able to see the full impact of the enhanced conversions.

Should You Set Up Enhanced Conversions?

Not all advertisers would see great benefit from using enhanced conversions, but many would. You’ll need to weigh the pros and cons, then decide if it’s worth it for your business. While more advanced tracking is certainly a positive, implementation isn’t the most straightforward process.

If you need assistance setting up advanced conversions – or for managing your paid search campaigns in general, we’d be happy to help. Feel free to reach out and we’ll get back to you shortly.

Paid Search
Putting together puzzle pieces

Written by: Jeremy Feig

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