Boost Google Ads Performance with Enhanced Conversion Tracking in GTM ?? | Step-by-Step Implementation & Best Practices

Google Ads’ Enhanced Conversions is a powerful feature that improves conversion tracking accuracy by securely sending hashed first-party user data. This data helps recover conversions lost due to browser restrictions, cookie limitations, and privacy regulations.

If you're already using Google Tag Manager (GTM) for Google Ads tracking, enabling Enhanced Conversions can improve measurement precision without additional complexity.

you'll learn:

? What Enhanced Conversion Tracking is and why it's important

? How it works technically (including SHA-256 hashing)

? How to implement Enhanced Conversions in Google Tag Manager

? Debugging and verifying Enhanced Conversions

1. What is Enhanced Conversion Tracking?

Enhanced Conversions is an advertiser-friendly privacy-safe feature in Google Ads that:

?? Uses first-party data (like email, phone number, or address) to improve conversion tracking accuracy

?? Hashes the data using SHA-256 before sending it to Google Ads

?? Matches users who have interacted with Google Ads but might have blocked cookies

?? Works with existing conversion tracking setup in GTM

This feature helps recover lost conversion data and improve return-on-ad-spend (ROAS) measurement.

Why is Enhanced Conversion Tracking Important?

With increasing browser restrictions on third-party cookies (e.g., ITP in Safari, ETP in Firefox), conversion tracking has become less accurate. Enhanced Conversions improve tracking by:

? Filling attribution gaps caused by cookie blocking

? Increasing match rates for users who convert across different devices

? Improving campaign performance insights

2. How Enhanced Conversion Works Technically

1?? User interaction: A visitor clicks on your Google ad and lands on your website.

2?? Conversion event: The user submits a form or makes a purchase (tracked via Google Ads conversion tag).

3?? Data collection: GTM extracts first-party user data (like email or phone number) from the conversion event.

4?? Hashing process: GTM hashes the collected data using the SHA-256 algorithm before sending it to Google Ads.

5?? Matching with Google accounts: Google attempts to match the hashed data with its logged-in user base to attribute the conversion.

This ensures privacy compliance while improving tracking accuracy.

3. Step-by-Step Setup: Implementing Enhanced Conversions in GTM

Step 1: Enable Enhanced Conversions in Google Ads

1. Go to Google Ads → Tools and settings → Conversions
2. Select an existing conversion action (e.g., “Lead Form Submission” or “Purchase”)
3. Under Enhanced Conversions, click Turn on Enhanced Conversions
4. Choose Google Tag Manager as the implementation method
5. Click Save

Step 2: Collect First-Party Data in GTM

You need to capture the user’s email, phone number, or address when they submit a form or make a purchase. The data must be available in GTM as a dataLayer variable.

Example dataLayer push for form submission:

window.dataLayer = window.dataLayer || [];
window.dataLayer.push({
  'event': 'form_submission',
  'email': '[email protected]'
});
        

Step 3: Create a Variable for User Data in GTM

1. Go to GTM → Variables → New
2. Select Variable Type → Data Layer Variable
3. Set the Variable Name to match the dataLayer key (e.g., email)
4. Name the variable DLV - Email
5. Click Save

?? Tip: If multiple fields are available (email, phone, name), create separate variables for each.

Step 4: Modify Your Google Ads Conversion Tag

• Go to GTM → Tags → Google Ads Conversion Tracking
• Click on your existing Google Ads Conversion Tag
• Enable Enhanced Conversions
• Under User-Provided Data, select Manual Configuration
• Map the hashed variables:
• Email → {{DLV - Email}}
• Phone → {{DLV - Phone}} (if available)
• Address → {{DLV - Address}} (if applicable)
• Click Save & Publish

Step 5: Hash Data Using SHA-256 in GTM

Google Ads requires that email and phone numbers be hashed before sending. GTM automatically hashes them when you map them under User-Provided Data.

However, if you want to hash manually before pushing to dataLayer, use this JavaScript function:

async function hashData(value) {
  const encoder = new TextEncoder();
  const data = encoder.encode(value.trim().toLowerCase());
  const hashBuffer = await crypto.subtle.digest("SHA-256", data);
  const hashArray = Array.from(new Uint8Array(hashBuffer));
  return hashArray.map(byte => byte.toString(16).padStart(2, '0')).join('');
}
        

4. Debugging and Verifying Enhanced Conversions

Verify in Google Tag Assistant

1?? Use Google Tag Assistant (Legacy) to check if the conversion tag is firing

2?? Look for Enhanced Conversions data in the tag details

Verify in Google Ads

1. Go to Google Ads → Conversions → Select the Conversion Action
2. Check the Diagnostics tab
3. Look for messages like Enhanced Conversions received

If the match rate is low, verify that:

? First-party data is being collected correctly

? Emails/phones are hashed and formatted properly

? The GTM tag fires on the correct event

5. Best Practices for Enhanced Conversions

?? Use Google Tag Manager for easier implementation

?? Ensure first-party data is captured accurately (via dataLayer)

?? Hash data before sending to Google Ads (SHA-256)

?? Regularly debug GTM setup using Google Tag Assistant

?? Follow privacy guidelines (GDPR, CCPA) by obtaining user consent before tracking

Conclusion

Enhanced Conversions in Google Ads significantly improve conversion tracking by leveraging first-party data securely. With GTM, you can implement this feature efficiently and recover lost conversions due to privacy changes.

By following the best practices and debugging properly, you ensure higher match rates and better ad performance measurement.

?? Have questions? Drop a comment below!

?? Need help implementing this for your Google Ads campaigns? Let’s connect! ??

Let me know if you’d like any refinements or additional details! ??

I’m passionate about empowering organizations with data-driven decision-making while respecting user privacy.

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