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Setting up Google Ads Conversion Tracking for E-Commerce Stores

Brody Hall
By Brody Hall
Joel Taylor
Edited by Joel Taylor

Published May 5, 2022.

A trolley with plus symbols drawn onto four wooden blocks

Google Ads e-commerce tracking, once referred to as Google AdWords, is a feature that allows users to measure the success of e-commerce ads. With this feature, users can see how much revenue their ads generate and the number of conversions and transactions they produce.

That being said, setting it up can be difficult if you don't know what you're doing, which is why we've put together this handy guide to help you get started. Keep reading to learn more.

What Is Needed to Set Up Google Ad Conversion Tracking?

Setting up conversion tracking for Google Ads is a fairly simple process, but before getting started, you’ll need to have these 3 things:

  1. Google Ads account
  2. Google Analytics account
  3. Google Tag Manager account

Once you've registered, you can move on to setting up Google Ads conversion tracking for your e-commerce store.

How to Set Up Google Ads Conversion Tracking

  1. Once the accounts are ready to go, log in to Google Analytics and navigate to “Admin.
  2. From the “View” column, select “e-commerce settings” and set “Enable e-commerce” to ON.
  3. Finish by clicking “Save.
  4. Once the account configuration is complete, you’ll need to install the conversion tracking code on your website using Google Tag Manager, which will track any conversions resulting from your ads. You can find the code under the "Tools" tab nestled within your Ads dashboard.
  5. Now it’s time to create a conversion goal in your Google Ads account. This can be anything from making a purchase to signing up for a newsletter.
  6. The final step is to configure your conversion settings in Ads, which tells the platform how you want to track your conversions. You can choose between using the "last click" or "first click" model and then specify a value for each conversion.

If you’re selling on Amazon, see how profits can be tracked on Amazon FBA.

What Is Tracked by an Ad Tracker?

You can use an ads tracker for several key e-commerce metrics, including:

  • Transactions Google Ads e-commerce tracking allows businesses to see the transactions that occur on their website. This information can help businesses measure the success of their advertising campaigns and make necessary changes to improve their results.
  • Order values When you set up e-commerce tracking in your Google Ads account, the order values that are tracked will be the total value of the items in the order, including tax and shipping.
  • Conversion rate In Google Ads, the "Conversion Rate" is a metric that shows you how often people who click your ad go on to buy something from your website.
  • Total number of orders In e-commerce tracking, the total number of orders is the total number of transactions that have been created in a given period. This metric can be used to measure the success of a campaign.
  • Keywords driving sales Sales keywords are important for e-commerce businesses to track in Google Ads. These keywords drive traffic and sales to your website. By tracking these keywords, you can optimize your campaigns to improve your ROI.
  • Expenses As well as profits, Google Ads can also track e-commerce business expenses. With this feature, you’ll be able to see how much each ad campaign is costing you and how you can alter campaigns to perform more effectively.
  • Profitability analysis Google Ads can also be used to perform a profitability analysis. The feature provides data on how much revenue each campaign generates and the cost of the ads while also tracking generated profits and revenue.

If you wish to learn more about e-commerce profitability, read What Is Considered a Good ROAS for E-Commerce?

How to Know if Your Ad Tracker Is Working Correctly

To be sure your ad tracker is working correctly, try these tips to help you out:

  • Compare the results of your ad tracker with those of another tool, such as Google Analytics. If there are discrepancies between the two, your ad tracker may not be working correctly.
  • Make sure that you're tracking the right conversions. If you’ve set up goals that track irrelevant metrics, you're going to miss out on key data.
  • Be sure that you're using the correct conversion tracking code as a duplicate tracking code will render an ad tracking tool useless.

Considering branching out with your social media ads? Read How to Use Snapchat Ads to Boost Your E-Commerce Store and Guide to TikTok Ads for Online Store Owners.