Total Conversion Value (Revenue)
- Total Conversion Value (Revenue)
- Setting Conversion Values
- Static Values
- Dynamic Values.
- Benefits of Conversion Values
- More Information
*A conversion is when a user performs a desired action (being tracked) on your website. This could be buying a product, downloading a file, clicking a link or any other desired action. Typically conversions are linked either directly or indirectly to revenue.
*Conversion data is the bottom line, sometimes not available in AdWords unless you have set it up to track conversion values or revenue data.
Quick Description = Value of the income generated from online conversions
Referred to as = Total Conv. Value
Total Conversion Value relates to the values entered for conversions within AdWords; these are summed up into ‘Total Conversion Value’. It is also possible to import transactions from Google Analytics (GA) in order to get revenue data into AdWords if you have setup GA for your site as an eCommerce site.
More often than not Total Conversion Value refers to revenue from sales, leads, etc. It could also be estimated or approximate revenue. Either way this is very important information because it makes it possible to optimise an account for more revenue. This also opens the door to optimising for ROI and Profit, both of which require Revenue to be calculated.
Revenue, referred to as ‘Total Conversion Value’ in AdWords, is a metric that will only show if conversion values have been implemented. Revenue is always an important metric when being used in an account.
You can access the conversion value from the conversions section of AdWords:
Static values can be used as hard values, i.e. if you sell leads for specific values, or have a specific product purchase conversion, etc. You can also use static values as an indicator or approximate value, for example:
If you receive an online enquiry form, you may be able to perform some analysis of what happens offsite to those users. If 1 in 5 enquiry forms lead to a sale and the average value of that sale over 50 sales is $1,000 you could take an average of ($1,000 / 5) $200 as the value for the enquiry form completion.
If you have a Google Merchant account and have linked this, you can pull in product level values in a different way from the above. For eCommerce sites, every purchase can have a unique value depending on the product. You can bring these values into AdWords in order to better understand profitability and ROI.
Google provide a how to guide on setting up conversion values, in this article.
You can apply conversion data externally to AdWords, through exporting data and using some Excel wizardry to correlate conversion names with values. However this is vastly less efficient when compared to having these values present in AdWords.
Conversion values allow you to use features such as ROAS or ROI bidding, you can also more effectively manage bids based on revenue data. Having this metric present in the account also allows you to see profit at any level throughout the account.
If you liked this guide on Total Conversion Value (Revenue), you may also be interested in the following guides related to this subject:
- Converted Clicks
- All Conversions
- Converted Click Rate
- Conversion Tracking
- Conversion Rate
- Cross Device Conversions
- Cost Per Converted Click
- Avg. CPC (Cost Per Click)
- Revenue Per Conversion
- Conversion Optimiser