In the world of digital marketing, conversion metrics are undoubtedly one of the most critical factors to track. They're directly tied to your advertisement performance and provide invaluable insights for eCommerce companies. Today, we'll dive deep into two essential Google Ads metrics: "Conversions" and "Conversions (by conversion time)." Understanding the difference between these two can be a game-changer for your PPC campaigns and reporting.

The Importance of Conversion Tracking

Before we delve into the specifics, let's briefly touch on why conversion tracking is crucial for eCommerce businesses:

• Measures ad effectiveness
• Helps optimize campaign performance
• Guides budget allocation decisions
• Provides insights into customer behavior

Now, let's explore the key concept of conversion lag.

What is Conversion Lag?

Conversion lag refers to the time period between when a person clicks on your ad and when they complete a purchase. This duration can vary significantly depending on several factors:

• Product type
• Price point
• Industry
• Customer decision-making process

Understanding conversion lag is crucial for accurate reporting and campaign optimization.

Conversion lag is very different from product to product and from business to business as it depends on these factors on how long a person is considering purchasing a product from the first click. 

One of the things that are often quite confusing is accounting for conversion lag in your weekly reportings because you can't optimize for smaller windows of data segments as you could be looking at a smaller subset of the complete picture - you could eventually make sure to exclude your conversion lag from your reporting view - so that if we assume that your conversion lag is 7 days, you have to manually exclude the last 7 days in the date selector in Google Ads. 

Or you could look at conversions (by conv. time), conversion value (by conv. time), and ROAS (by conv. time) 

The difference between conversions and conversion (by conv. time) 

But first, let’s start by understanding the difference between the 2 conversion metrics. 

When we refer to “conversions” we are referring to the number of conversions that occurred within the selected date range. The metrics show the number of people who clicked on your ad and converted during the same period. 

For example, if a person clicks on your ad and converts right away on the same day it would count as a conversion 

It gets more tricky when a person clicks on an ad outside of your date range but converts inside your date range - this will ultimately mean that the conversion wouldn't be counted or shown in the conversion column because the conversions are attributed back to when the click happened in the conversion column 

This is illustrated here: 

Here you can see that conversion shows 0 conversion while conversion (by conv. time) shows 1 conversion 

Next, if your conversions click happened on May 25, but the conversion itself happened on June 1, you’ll see a conversion in the conversion column, but zero conversion in the conversions (by conv. time) column. 

Last but not least, if the click happened on May 26th and the conversion happened on May 28th then you’ll see a conversion in both the conversion and conversion (by conv. time) column 

Conversions vs. Conversions (by conversion time)

Now, let's break down the difference between these two important Google Ads metrics:

Conversions:

1. Shows the number of conversions that occurred within the selected date range
2. Attributes conversions back to when the ad click happened
3. May not include conversions from clicks outside the date range

Conversions (by conversion time):

1. Displays conversions based on when the conversion actually occurred
2. Provides a more representative picture of conversions generated in a specific timeframe
3. Aligns better with back-end revenue numbers

Benefits of Using Conversions (by conversion time)

1. More accurate representation of current performance
2. Eliminates the waiting game for conversion lag
3. Better alignment with actual revenue figures
4. Improved campaign evaluation and steering

Important Metrics to Add to Your Reporting

To get a comprehensive view of your campaign performance, consider adding these metrics to your Google Ads reporting:

1. Conversions (by conv. time)
2. Conv. value (by conv. time)
3. ROAS (by conv. time) - Custom metric

ROAS (by conv. time) Formula:

Conversion value (by conv. time) / cost

Implementing These Insights in Your Campaigns

To make the most of these conversion metrics:

1. Add the (by conv. time) columns to your Google Ads reports
2. Compare both conversion metrics to understand your conversion lag
3. Use (by conv. time) metrics for more accurate short-term performance evaluation
4. Adjust your reporting timeframes based on your average conversion lag

Frequently Asked Questions:

1. Q: How long does conversion lag typically last? A: Conversion lag varies widely depending on the industry, product, and customer behavior. It can range from a few hours to several weeks or even months for some high-consideration purchases.
2. Q: Can I use both "Conversions" and "Conversions (by conv. time)" in my reporting? A: Yes, you can and should use both metrics. They offer different insights and can be valuable for different aspects of your campaign analysis.
3. Q: How do I add the "Conversions (by conv. time)" column to my Google Ads reports? A: In your Google Ads account, go to the Campaigns tab, click on the Columns icon, then "Modify columns." Under "Conversions," you'll find the "Conv. (by conv. time)" option to add.
4. Q: Does using "Conversions (by conv. time)" affect my bidding strategies? A: No, Google Ads automated bidding strategies use the standard "Conversions" metric. "Conversions (by conv. time)" is primarily for reporting purposes.
5. Q: How can I determine my average conversion lag? A: In Google Ads, go to the "Tools & Settings" menu, then "Measurement" > "Search attribution." Under "Path analysis," you'll find the "Time lag" report showing how long it takes users to convert after clicking your ad.
6. Q: Will using "Conversions (by conv. time)" show more conversions than the regular "Conversions" column? A: Not necessarily. It may show different numbers, but whether it's higher or lower depends on your specific conversion patterns and the date range you're viewing.
7. Q: How does conversion lag affect my budget planning? A: Understanding your conversion lag helps in more accurate budget allocation. If you have a long lag, you might need to wait longer to see the full results of your campaigns before making major budget decisions.
8. Q: Are there any industries where using "Conversions (by conv. time)" is particularly important? A: Industries with longer sales cycles, such as B2B services, luxury goods, or high-ticket items, often benefit more from using "Conversions (by conv. time)" due to typically longer conversion lags.

Conclusion

While both conversion metrics offer valuable insights, the Conversions (by conv. time) often provides a clearer picture for evaluating and steering campaigns effectively. The impact and usefulness of these metrics may vary depending on your business's unique conversion lag and reporting frequency.

By mastering these fundamental aspects of conversion tracking in Google Ads, you'll be better equipped to optimize your PPC campaigns and drive better results for your eCommerce business.

Ready to take your Google Ads performance to the next level? Implement these insights into your campaigns today, and don't hesitate to reach out if you need personalized advice for your unique business needs.