How Google Ads Leverages Data for Better Results

For a long time, we've preferred running eCommerce campaigns over lead generation campaigns. Ask any Google Ads expert, and they'll likely say the same. Why? Because with eCommerce campaigns, tracking is more straightforward, enabling optimisations that drive clear, measurable results.

With eCommerce campaigns, you’re tracking online sales directly, allowing you to provide insights such as:

• Campaign Performance Example 1: This campaign spent R1,000 and generated R10,000 in sales. That’s a 10x return! Based on this, we recommend increasing the budget by 20% per week until we find the sweet spot where revenue and ROI are optimised.
• ?Campaign Performance Example 2: Another campaign spent R1,000 but only generated R1,500 in sales. However, it also drove newsletter sign-ups, which generated R25,000 in sales from subsequent email campaigns. In this case, we recommend maintaining the campaign for lead acquisition while optimising it for higher-quality subscribers.

Lead generation campaigns, on the other hand, often face more challenges:

• Google Specialist: "We’re happy to report we got 50 leads for you this month!"
• Client: "What happened to them? We only closed 2 sales."
• Google Specialist: "I’m not sure. The report shows 50 leads…”

This disconnect is frustrating for both clients and Google Ads specialists. However, with the right approach, lead campaigns can achieve the same level of success as eCommerce. It just takes understanding how Google uses data and setting up your campaigns in a way that lets Google—and your Google Ads specialist—gather better insights, make smarter optimisations, and ultimately, drive better results.

How Google Uses Data

Your campaign can be optimised for the number of leads or cost per lead. Essentially, you’re telling Google, “Here’s my budget of R10,000 per month. Find me as many leads as possible within this budget.” Google then uses your conversion actions to try and deliver on this request. Every time it tracks a conversion, it learns more about the types of people likely to convert and tries to find similar leads.

Sounds straightforward, right? But this is where things can go wrong.

1. Incorrect Conversion Actions: Many accounts track conversions like newsletter sign-ups, all telephone calls, general website inquiries, or even page views as conversions. However, these aren’t necessarily sales-driven actions. It’s essential to set up conversion actions that align directly with your sales goals.
2. ?Duplicate Conversion Actions: In some cases, conversions are set up both in Google Analytics and Google Ads, leading to double-counting. This can give Google an inaccurate view of performance, making it think it's doing better than it actually is.
3. ?Low-Quality Leads: Not all leads are equal. Google can’t inherently tell the difference between high-quality and low-quality leads. Without guidance, it may continue to optimise for all leads—good and bad alike—potentially wasting your budget on poor leads that don’t result in sales.

How to Fix These Issues

Thankfully, there are ways to address these issues and turn lead campaigns into powerful tools for growth:

1. Set Up Correct Conversion Actions: Use qualifying questions on your forms to filter out low-quality leads. This way, you can tell Google, “These are good leads, these are not,” allowing it to focus on finding higher-quality prospects.
2. Audit Conversions for Duplicates: Regularly audit your conversion actions to ensure they’re not duplicated. Also, categorise them as Primary (sales-focused) or Secondary (informational) so that Google understands which conversions are the most valuable to your business.
3. Use Enhanced Conversion Tracking: Upload your sales data back into Google Ads. By matching this data to the leads it generated, you can get a clearer view of your ROI and see how much of your spend directly translates into revenue.
4. Upload Lead Outcomes: If a lead turns into a sale or qualifies as a high-quality prospect, upload this information back into Google Ads. Conversely, flag any poor-quality leads so Google knows not to pursue similar prospects. This feedback loop helps Google refine its targeting to prioritise quality over quantity.
5. Feed Old Client Data into Google Ads: Give Google a head start by showing it what your ideal customer looks like. When you upload existing customer data, Google can use its data signals to build a detailed profile of potential leads that align with your ideal customer base.

Google Ads isn’t just about keywords anymore. It’s about the keywords you choose plus the data Google has on your ideal customer. By combining these insights, Google can make smarter decisions, which means happier YOU and happier bottom line :)

?

At Metis Performance Marketing, we’re passionate about making data work for you. We kick off every client journey with a comprehensive Tracking & Data Eco-System audit to ensure campaigns are set up for success. If you’re not sure whether your Google Ads are built on a solid, data-driven foundation, let’s chat! Reach out at [email protected].