For the success of products and services in the e-commerce market, a comprehensive approach and deep understanding of this field are essential. In addition to high-quality products, which are a fundamental element for every merchant, it’s also crucial to focus on appealing and visually captivating product promotion. Today’s advertising sphere offers business owners a wide range of ad formats, ranging from traditional, more static PPC ads to interactive Display Ads. Once you have these basic factors in place as per your expectations, it’s the right time to conduct an in-depth analysis of available data and optimize campaigns to improve their efficiency, reach, and strengthen your market position.

When analyzing data extracted from your e-shop and ads, it’s important to keep in mind the goals you set in advance. These goals determine the key metrics you’ll track to ensure they’re relevant for your growth and progress. If you’re not entirely confident in analytics, don’t hesitate to reach out to our expert and certified BlueWinston team, who will gladly assist you with consultation, setup, and ongoing monitoring.

There are several metrics commonly monitored and examined in analytics. These include cost per acquisition (CPA), click-through rate (CTR), ROAS, and, importantly, conversion rate. The conversion rate represents the percentage of website visitors who complete a desired action, such as filling out a contact form, subscribing to a newsletter, or, in the case of e-commerce, making a purchase.

Steps to Set Up Conversion Tracking

Source: Google

What are cart data conversions?

Conversion tracking allows you to monitor how effectively clicks on your ads lead to valuable actions by customers on your website. Google Ads is renowned among advertisers for its continuous service innovations, and conversion tracking is no exception. Currently, you can leverage an advanced conversion tracking option on your website by monitoring conversions with cart data.

By understanding conversions with cart data, you gain detailed insights into the products sold within individual transactions. This additional information provides a deeper view of your ads’ performance, enabling you to better regulate subsequent optimization. Cart data unlocks more detailed and advanced reports on sales, profit, and also gives you greater visibility into your Google Ads account. For individual campaigns, this data offers insights into the number of orders, average cart size, total revenue, and gross profit. This advanced cart data analysis feature is currently compatible with Performance Max, Search Ads, and Shopping Ads campaigns.

Benefits of Tracking Conversions with Cart Data

Conversion tracking

Source: Google

Although your ad promotes specific products or services, consumers may end up purchasing entirely different items from your e-shop after clicking on the ad. This means that even products that seem less profitable can ultimately support the sale of other, more popular items. By implementing cart data conversions, you can effectively identify which items are being purchased after an ad click or determine which products are the best-sellers as a result of your advertising efforts. Cart data conversions also allow you to analyze cross-selling patterns, helping you identify products that lead to larger carts or higher order values.

In summary, the main benefits of cart data conversions include:

  • Accurate tracking of revenue and profit generated from supported Google Ads campaigns

  • Detailed reports on sold products, average order value, and cart size

  • Comprehensive cross-sell reporting (applicable for Shopping Ads)
  • Better understanding of your product assortment

What Data Can You Extract from the Cart?

After implementing cart data conversion tracking, you gain access to a range of additional, valuable parameters for your business. These include:

  • Orders – the number of sales attributable to ad clicks.
  • Average Cart Size – the total number of items added to carts by customers, divided by the number of completed orders.
  • Average Order Value – the revenue generated from consumers who clicked on the ad, divided by the total number of orders attributed to the ad clicks.
  • Cost of Goods Sold (COGS) – the total cost associated with producing the products sold.
  • Revenue – the income value attributable to ad clicks.
  • Gross Profit – the total value of all transactions generated through ad clicks, minus the cost of goods sold.

Conclusion

Google Ads regularly updates and expands its services to provide business owners with more comprehensive growth and profit-maximization opportunities. One recent enhancement is the ability to track conversions with cart data, giving advertisers new options for effective campaign optimization through detailed, relevant data. By implementing cart data conversion tracking, you can effectively determine which products are purchased after an ad click and identify your best-sellers driven by ads. This provides advanced reporting on profits, sales, and more detailed insights into your Google Ads account.