Assigning Monetary Values to Conversions in Google Ads

Assigning Monetary Values to Conversions in Google Ads - www.ruleranalytics.com

Adding monetary values to conversions in Google Ads provides you with a better understanding of the performance of your advertising campaigns. For this article, we’re going to show you the process we use for assigning values in Google Ads so that you can track where your high-quality leads are coming from and optimize for revenue success.

So, you’ve set up your Google Paid campaign, and your ads are starting to drive a volume of clicks to your website.

Great!

But unless you’re assigning monetary values, then you have no insight into which ads, keywords and campaigns are driving the most revenue for your business.

Until now.

For this article, we’ll discuss:

  • How conversion values work
  • How to set up values in Google Ads
  • How to calculate monetary values to conversions in Google Ads
  • Sending revenue data to Google Ads using Ruler Analytics
  • Why you should use values in Google Ads
Editor’s Note: Budgets are getting scrutinised, and marketers are under more pressure than ever to justify their investments. With the Closed-Loop Framework, you can easily connect revenue data with marketing activity to measure your ROI and demonstrate the effectiveness of your campaigns. Download the handbook to learn more.

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What is a conversion value?

Google Ads allows you to assign values so that you can measure the performance of your marketing based on revenue and not just conversion data.

In its most basic form, a value in Google Ads is a numerical figure that you assign to specific conversions.

Advertisers can assign values to any conversions in Google Ads, whether it be a call conversion, lead form or purchase.

For example, if you sell a product on your website for £100, and someone makes a purchase, then the value of that conversion is worth £100 to you.

In short, values in Google Ads allow you to make smarter decisions about your marketing performance, in turn, increasing ROI.

 

How to set up conversion values in Google Ads

Important Note: Before we go any further, it’s important that you fully understand the concept of conversion tracking in Google Ads. If you feel like you’re up to speed, then jump ahead to the next section. If not, we suggest you read our guide on PPC conversion tracking before you move forward.

As we’ve just discussed, when setting up a new conversion action, or editing an existing one, you can assign a monetary value.

To get started, sign in to your Google Ads account.

Step 1: Click on the “Tools” in the top right-hand corner.

assigning monetary values to conversions - google ads step 1 - www.ruleranalytics.com

 

Step 2: Under ‘Measurement‘, click Conversions.

assigning monetary values to conversions - google ads step 2 - www.ruleranalytics.com

 

Step 3: Click on the “+ button”.

assigning monetary values to conversions - google ads step 3 - www.ruleranalytics.com

For this next step, we’re going to keep it simple and set up a website conversion. That said, you can track app conversions, phone calls as well as import data from Google Analytics or another source.

 

Step 4: Step 4: Select “Website”.

assigning monetary values to conversions - google ads step 4 - www.ruleranalytics.com

 

Step 5: Choose the action you’d like to track. For this demonstration, we’ve chosen “Submit” lead form. Type in your conversion name. Make sure that it’s easy to remember.

assigning monetary values to conversions - google ads step 5 - www.ruleranalytics.com

 

Step 6: Now it’s time to assign your Value. There are three options to choose from:

  • Use the same value for each conversion: This option is most suitable if you track leads. All you need to do is enter the average value from each lead to assign a number. If you’re not sure how to do this, then don’t worry, we’ll get to this shortly. You can also use this method if you only sell one type of product. Just enter the value of each sale, and you’re good to go.
  • Use different values for each conversion: If you sell multiple products at different prices, then you can give each of them a unique value. To achieve this, you’ll need to add a tracking code.
  • Don’t use a value for this conversion action: Not recommended for most conversions, as a value helps you measure the effectiveness of your ads. If you choose this option, then Google Ads will assign “0” every time someone makes a conversion.

assigning monetary values to conversions - google ads step 6 - www.ruleranalytics.com

 

 

Step 7: Next, you’ll need to select how many conversions to count per click or interaction. There are two options to choose from:

1. Every: Google Ads recommends you use this option for purchases as every purchase provides some form of value.

2. One: This option is more suitable for leads, sign-ups and other conversions that don’t directly lead to a sale.

assigning monetary values to conversions - google ads step 7 - www.ruleranalytics.com

 

Step 8: You’ll need to set your attribution settings. Google Ads provides the following attribution models:

Data-Driven
Last Click
First Click
Linear
Time Decay
Position-based.

assigning monetary values to conversions - google ads step 8 - www.ruleranalytics.com

We have plenty of content on attribution and how to choose the right model for your business which we’ve linked below.

 

Calculating Monetary Values in Google Ads

Assigning values is much easier for businesses that accept payments online.

If you’re selling a lot of different products, then you can set up eCommerce tracking to measure shopping cart values that change dynamically.

Sounds easy, but what if you don’t sell products online and use Google ads to generate leads, which over time, may or may not convert into a sale?

That’s not all.

What if you operate in the service industry, or sell high-value products such as cars or properties and use pay-per-click to drive leads online but convert revenue offline?

This is where things get a little tricky.

Fortunately, there are a few methods you can use to help calculate and assign values to conversions in Google Ads, both online and offline.

 

Sending Revenue Data to Google Ads with Ruler Analytics 

Ruler Analytics is a multi-touch marketing attribution solution that connects campaign activity with revenue data to close-the-loop between sales and marketing, allowing businesses to evidence the effectiveness of their campaigns.

First, we’re going to show you how Ruler Analytics matches revenue with your marketing touchpoints. Then, using the data from Ruler Analytics, we’ll show you two alternative methods to assign values to conversions in Google Ads.

Sound good?

If so, let’s start by looking at how Ruler Analytics closes the loop between marketing leads and revenue.

 

assigning monetary values to conversions - closed loop framework - www.ruleranalytics.com

 

Ruler tracks each anonymous visitor
First, Ruler creates a user for each person that visits your website, capturing the referral source (Facebook ad, Google ad, social media post, etc.) alongside any details you know about the visitor.

That visitor is now a unique prospect in the system, even if he/she is still anonymous.

Connects marketing touchpoints with conversion data
Once the anonymous visitor becomes known—requests a demo, schedules a call or fills out a form—Ruler captures all of that data and matches their contacts details with any marketing touchpoints to create a customer journey.

Sends data to your CRM
Next, Ruler integrates with your CRM.

The integration is a loop, passing your conversion and marketing data from Ruler to your CRM, then from your CRM back to Ruler.

Connects the dots between leads and revenue
When a sale is registered in the CRM, that data is passed back to Ruler—including the amount of revenue generated from the sale.

Inside of Ruler, marketing teams can build detailed reports showing exactly what campaigns prospects interacted with prior to the conversion and—even more exciting—exactly how much revenue each individual marketing campaign generated for the business.

This method is most effective if you use Google ads to raise awareness online but convert leads into revenue offline.

Ruler Analytics assigns values to your offline conversions, allowing you to see what impact your ads are having on your phone call enquiries.

You can find out more about Ruler’s offline conversion tracking here.

Additional Note: Want to learn more about offline conversion tracking? See how our customers are benefiting from using Ruler Analytics:

Now that we’ve covered the closed-loop formula, we’re now going to show you two methods that we’d use to send revenue data from Ruler Analytics to conversions in Google Ads.

 

1. Export Ruler Data from Google Analytics 

Important Note: You need to send your Ruler data to Google Analytics first before you can report on revenue activity in Google Ads. Also, your Google Analytics and Ads account must be linked before you can begin this setup.

Step One: Create a Goal for the Revenue events you are firing into Analytics

assiging monetary values to google ads - sales cycle - www.ruleranalytics.com

Under Admin > Goals > Create Goal you can create a goal to report all the Sale events you are firing in one view to Analytics from Ruler.

Under ‘Goal Details‘, be sure the Category, Action and Label ‘equals to‘ the parameters sent in the goal.

Creating the goal will map all incoming events in one view.

Step Two: Once you have the goal created in Analytics, you can import the goal to your Google Ads account.

Step Three: Login into your Ads account and select “Settings”.

Step Four: Go to Measurement > Conversions and click the “+” icon.

Step Five: Click “Import” and select your Google Analytics account and the Goal you want to import.

 

2. Manually Upload Ruler Data to Google Ads

In some cases, you might want to track data for conversions that don’t happen on your website.

For example, when a user calls your business, and your sales team converts them into a customer over the phone. Or when someone walks into a retail outlet of yours and completes a sale.

Another option is to manually upload your Google Ad sales to your account using GCLIDs. Ruler Analytics can capture any GCLIDs related to a visitor as soon as they land on your website via Google Paid.

When a lead converts into a customer in your CRM, Ruler Analytics will match the GCLID with the total revenue.

We provide these GCLIDs in a Google Sheet, which allows you to perform a one-time upload.

Or, if you’d prefer, you can schedule a continuous upload to your Google Ads account so that you can attribute value to campaign and keyword level with complete ease.

Here’s how to upload your data into your Google Ads account:

Step One: Create a new offline conversion in your Google Ads account. If you’re not sure how to do this, then you can follow this guide on how to set up offline conversions.

Step Two: Ensure you have correctly formatted your CSV report and upload your conversions from Ruler to your Google Ads account. More information on this can be found here.

We hope the above is useful to you, and if you have any questions about how to track revenue data in Google Ads, then please feel free to contact us by booking a demo of Ruler Analytics.

 

Calculate an estimated value

Now, if you’re looking for more of an estimated figure, then you can use the following formula to calculate and assign values to your conversions in Google Ads.

This option is most suited if all conversions that you are creating hold the same value.

For example, let’s say you generate five leads via a contact form on your website.

Out of all these leads, you manage to convert one into a £500 sale.

You divide the total of £500 by five leads, and this leaves you with £100.

Of course, you’re not receiving £100 of each person, but you know that you have a 10% close rate. So, you can assign £100 value for each lead coming through your contact form.

This method isn’t a reliable way to measure the value of your goals, but it can provide you with some clues on where your revenue is coming from.

 

Why Assign Monetary Values?

Why wouldn’t you assign Values in Google Ads?!

No, in all seriousness, when you have a monetary value associated with your conversion, it’s much easier to calculate the ROI of your marketing performance and optimise campaigns based on their ability to drive more revenue.

More benefits to include:

  • Better allocation of your digital marketing budget
  • Improved campaign and promotional efforts
  • Identify high-converting keywords and campaigns.

Also, once you’ve set up your conversion values, you gain access to use the maximise conversion value or target ROAS automated bid strategies.

Automated bid strategies automatically set bids to optimise for your performance goals.

We won’t go into that here, as we already have a guide dedicated to smart bidding which explains this in much more detail.

 

Final Thoughts

Assigning values to conversions in Google Ads lets you know, with complete certainty, whether or not your campaigns are generating the results you need to take your business to the next level.

Using a tool like Ruler Analytics, you have a single source of truth of where your leads are coming from, in turn, allowing you to calculate and assign conversion values more accurately.

Ready to take your conversion tracking to the next level?

Get in touch with us today and to learn more about how we can help you assign monetary values to your conversions in Google Ads.

Book a demo Ruler Analytics

Written by

Digital Marketing Manager at Ruler Analytics with a background in SEO, analytics, content marketing and paid social. I help people (like me) close the loop between marketing-generated leads and revenue.