Implementing Enhanced Conversions in Google Ads and GA4

In today’s digital marketing landscape, accurate conversion tracking is essential for optimizing campaigns and achieving the highest return on investment (ROI). With privacy regulations on the rise and the phasing out of third-party cookies, marketers are seeking robust solutions to maintain effective conversion tracking. Enhanced Conversions in Google Analytics 4 (GA4) and Google Ads present a powerful answer to these challenges. This blog explores the benefits of implementing enhanced conversions and addresses the associated data privacy concerns.

What Are Enhanced Conversions?

Enhanced Conversions enable businesses to improve the accuracy of their conversion tracking by leveraging first-party data, such as email addresses, phone numbers, and names. This data is securely hashed using the SHA-256 algorithm—a cryptographic hash function that converts data into a secure format, making it difficult to reverse-engineer and ensuring user data protection during the conversion tracking process. The hashed data is then matched with the consumer’s Google account, tying conversions to ads and gathering valuable audience insights to enhance future conversion reporting.

This process delivers a more precise understanding of which ads lead to conversions, even when traditional tracking methods are limited due to privacy restrictions or the absence of third-party cookies.

Why Enhanced Conversions Matter in Today’s Privacy-Conscious World

As privacy concerns grow and regulations like the California Consumer Privacy Act (CCPA) come into effect, along with Apple's introduction of iOS 15, many ads underperform due to reduced data availability. iOS 15 introduced features like Mail Privacy Protection and App Tracking Transparency (ATT), limiting marketers' ability to track user behavior, thereby increasing the reliance on first-party data.
The decline of third-party cookies has pushed platforms to focus more on first-party data. Enhanced Conversions address these challenges by matching encrypted first-party data with campaign data, even when users interact across multiple devices.

Top Benefits of Implementing Enhanced Conversions

1. Improved Conversion Accuracy

Enhanced Conversions significantly increase the accuracy of conversion tracking. By integrating hashed first-party data, businesses achieve more precise attribution of conversions. This is particularly beneficial in the U.S., where consumers frequently engage with brands across multiple devices and platforms.

2. Better Cross-Device Tracking

With Enhanced Conversions, businesses can effectively track user activity across different devices. This capability is crucial for accurately mapping the customer journey and ensuring that conversions are attributed to the correct ad interactions, regardless of device switching during the purchasing process.

3. Compliance with U.S. Privacy Regulations

In the U.S., regulations such as the California Consumer Privacy Act (CCPA) emphasize the importance of safeguarding user data. Enhanced Conversions are designed with privacy at the forefront, using secure hashing techniques that protect user information while maintaining robust conversion tracking. The feature works by sharing a value that Google can compare to its own records to confirm users it already knows of, without obtaining new PII it doesn’t already have, in turn allowing businesses to comply with privacy laws without sacrificing tracking accuracy or the ability to remarket to known users.

4. Optimized Ad Spend

With more accurate conversion data, marketers can better allocate their advertising budgets. Enhanced Conversions provide both valuable insights into which campaigns drive the most effective conversions, and the ability to build marketing audiences from known users, enabling more efficient use of resources and improved ROI.

5. Shift from Third-Party Cookies to First-Party Data

Enhanced Conversions rely on first-party data, such as email addresses or phone numbers, collected directly from users during conversions. As Google’s Privacy Sandbox will give Chrome browser users more control over third-party cookies, Enhanced Conversions gain even more importance. Since these conversions do not depend on third-party cookies, they align well with the Privacy Sandbox's focus on improving user privacy while maintaining the ability to track and measure conversions effectively.

Key Considerations for Implementing Enhanced Conversions in Google Analytics 4 (GA4)

There are three methods of setting up Enhanced Conversions:  

• • Google Tag Manager: If you currently use Google Tag Manager for conversion tracking you can set up enhanced conversions for web using Google Tag Manager with only slight changes to your configuration.

  • The Google tag: If you currently have conversion tracking implemented using the Google tag directly on your page (not within a third-party tool or iFrame), you can set up enhanced conversions for web using the Google tag by making slight changes to your configuration.

  • Google Ads API: If you would like to provide enhanced conversions data via API in order to have more flexibility and control over your data, you can set up enhanced conversions for web in the Google Ads API.

Implementing enhanced conversions in Google Analytics is starts with turning on the User-Provided Data Collection feature in GA. This feature is in open beta, which means it’s still evolving and is subject to change. This feature interacts with PII, which is otherwise forbidden in Google Analytics, so there are a number of things to consider when using it:

• • Before using user-provided data collection and enhanced conversions in GA, you must read and agree to an associated policy in the Admin section of GA.

  • When using Enhanced Conversions in Google Analytics 4 (GA4), it's important to note that this feature is currently best suited for properties with web data streams. For those with only app data streams, it’s recommended to use on-device measurement for iOS campaigns to achieve similar reporting benefits.

  • To ensure data accuracy, note that improvements in models and attribution from Enhanced Conversions won’t be available immediately. Expect a delay of around one month before these enhancements appear in Google Analytics reports, as well as in downstream reports and Google Ads bidding.

  • Using user-provided data requires an implementation of User ID, as that data is only accepted in events that come with a User ID in place. For properties with audiences involving user interactions across multiple devices, audience membership might decrease because User ID data (from signed-in users) is kept separate from signed-out user data. This separation can impact cross-device remarketing, though enabling Google signals can help mitigate this issue. Additionally, demographics and interest data for users with User ID will shift from being derived from cookies and device identifiers to user-provided data from signed-in users. 

     

Which Platform Should You Choose for Enhanced Conversion Implementation

Implementing Only in Google Ads

Benefits:

• Enhanced Attribution: By implementing Enhanced Conversions directly in Google Ads, you get more accurate conversion data attributed to your ads, especially in environments where third-party cookies are limited. This can lead to better performance in smart bidding strategies, such as Target CPA or Target ROAS, resulting in a higher Return on Ad Spend (ROAS).

Drawbacks:

• Limited Cross-Platform Insights: Implementing Enhanced Conversions only in Google Ads means you might miss out on insights across other platforms like GA4, limiting a unified view of user interactions across all your channels.

• Setup Complexity: The setup process can be complex, especially if your site’s conversion tracking relies heavily on custom configurations. Additionally, this implementation won't work if your account imports conversions from Google Analytics.

Implementing Only in Google Analytics 4 (GA4)

Benefits:

• • Holistic View of User Behavior: GA4 provides a broader view of user interactions across multiple touchpoints, both online and offline. This can enhance your understanding of user journeys and improve cross-channel marketing efforts​.

  • Flexible Reporting: Implementing Enhanced Conversions in GA4 allows for more flexible and detailed reporting that can be customized to suit different business needs.

Drawbacks:

• • Limited Ad Optimization: Without Enhanced Conversions data flowing directly into Google Ads, your ad campaigns might not fully benefit from Google's automated bidding strategies, potentially leading to less effective ad spend.

  • Delayed Attribution: Improvements from Enhanced Conversions in GA4 might not immediately reflect in your Google Ads campaigns, causing delays in optimizing ad strategies​.

Implementing in Both Google Ads and GA4

Benefits:

• • Comprehensive Data Integration: Implementing Enhanced Conversions in both platforms provides the most comprehensive dataset, enhancing both attribution accuracy and cross-channel insights. This setup maximizes the benefits of smart bidding in Google Ads while also offering deep analytical insights through GA4.

  • Optimized Campaign Performance: With data flowing seamlessly between GA4 and Google Ads, you can optimize campaigns more effectively, reducing data loss and improving overall conversion tracking.

Drawbacks:

• • Complex Setup: Setting up Enhanced Conversions across both platforms requires more resources and a greater understanding of how both systems integrate. This can lead to a more complex and time-consuming implementation process.

Data Privacy Considerations for Businesses

While Enhanced Conversions offer numerous advantages, they come with important data privacy considerations. The collection and processing of personally identifiable information (PII) require businesses to handle data responsibly. In the U.S., this means obtaining explicit user consent and ensuring compliance with laws like CCPA.

Transparency is key. Companies must clearly communicate their data practices, including how user data will be used, in their privacy policies. This transparency not only fosters trust with users, but also ensures that businesses remain compliant with legal requirements. Failing to secure proper consent or protect user data adequately can result in significant legal and reputational risks.

How Napkyn Can Help

Napkyn can help businesses navigate the complexities of enhanced conversions by offering expert guidance on implementing this powerful feature in both Google Analytics 4 (GA4) and Google Ads. Learn about our Analyst Program

With the rise of privacy regulations and the decline of third-party cookies, Napkyn's team of privacy specialists ensures that your conversion tracking remains accurate and compliant with laws like the CCPA. Learn about our Data Privacy Assessment Program.

We assist in the seamless integration of first-party data, enabling businesses to achieve better cross-device tracking, optimized ad spend, and enhanced audience insights. Napkyn's tailored solutions empower you to maximize the benefits of enhanced conversions while safeguarding user privacy and maintaining a competitive edge in the evolving digital landscape. Contact Us Today