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How to set up conversion value tracking?

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ajayaggarwal
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Conversion value tracking in Google Ads allows advertisers to measure the monetary value of user actions on their websites, such as purchases, sign-ups, or lead submissions. Instead of just tracking the number of conversions, it helps businesses understand how much revenue each ad interaction generates. This is essential for evaluating return on ad spend (ROAS), optimizing bidding strategies like Maximize Conversion Value, and making better data-driven marketing decisions.

Whether you run an eCommerce store like Myntra or Zara, or you collect leads for a service business, setting up conversion value tracking allows you to assign a rupee value to the actions users take after clicking on your ads.

Here’s a step-by-step guide on how to set it up effectively.

Step 1: Define What a Conversion Is Worth

Before setting up anything in Google Ads, determine:

  • Which user actions count as conversions (e.g., purchase, form submit, sign-up)

  • How much each action is worth to your business

You have two options:

  1. Static Value: Every conversion has the same value (e.g., ₹500 per lead)

  2. Dynamic Value: The value depends on the actual transaction amount (e.g., ₹2,000 from a Zara purchase)

Step 2: Set Up a Conversion Action in Google Ads

  1. Sign in to your Google Ads account

  2. Click on Tools & Settings (top menu)

  3. Under Measurement, select Conversions

  4. Click the blue + New Conversion Action

  5. Choose Website as the source

  6. Enter your website domain and click Scan

  7. Choose the type of conversion: Purchase, Sign-up, Submit lead form, etc.

  8. Set up the conversion name (e.g., “Purchase – Zara”)

  9. Under Value, select:

    • “Use the same value for each conversion” for static value

    • “Use different values for each conversion” if you want to track revenue dynamically

  10. Choose a default currency (₹)

  11. Set the count:

    • “Every” for eCommerce

    • “One” for lead generation

  12. Choose your click-through conversion window (default is 30 days)

  13. Click Done, then Save and Continue

Step 3: Add the Conversion Tracking Tag to Your Website

You now need to install the global site tag and event snippet on your website.

Option A – Use Google Tag Manager (Recommended)

  1. Go to Google Tag Manager

  2. Create a new tag

  3. Select Tag Type: Google Ads Conversion Tracking

  4. Enter your Conversion ID and Conversion Label (found in Google Ads setup steps)

  5. For dynamic values, set up a variable that pulls transaction value from the purchase confirmation page (like {{Transaction Value}})

  6. Set a trigger for Page View – Thank You Page or Form Submission

  7. Save and publish the container

Option B – Install Tags Manually

  1. Copy the Global site tag and paste it into the <head> of every page of your website

  2. Copy the Event snippet and paste it just before the closing </body> tag on the specific conversion page (e.g., order confirmation or thank-you page)

  3. If using dynamic values, make sure the snippet is modified to pass the value dynamically using JavaScript or server-side data

Example for eCommerce using Zara:

html
<script>
gtag('event', 'conversion', {
'send_to': 'AW-123456789/XyzLabel',
'value': 2999.0,
'currency': 'INR',
'transaction_id': ''
});
</script>

Step 4: Verify That the Tag Is Working

Use Google Tag Assistant or the Google Ads Tag Diagnostics Tool to:

  • Confirm that the conversion tag is firing correctly

  • Ensure that values are being passed correctly (₹ value shows up in the conversion)

You can also use Google Analytics (GA4) to cross-check transactions and compare against Google Ads conversion reports.

Step 5: View Conversion Values in Your Google Ads Reports

Once conversions start coming in, go to:

  • Campaigns > Add Columns > Conversions

  • Add the columns: Conversion Value, Value/Conversion, and ROAS (Conv. value / cost)

These columns will show:

  • How much value your ads are generating

  • The average value per conversion

  • Return on ad spend (ROAS)

For example, if you spent ₹10,000 and generated ₹50,000 in conversion value from your Myntra campaign, your ROAS will show as 5.0.

Step 6: Use Smart Bidding With Conversion Value

Now that you have conversion value tracking set up, you can switch your bidding strategy to:

  • Maximize Conversion Value

  • Target ROAS (Return on Ad Spend)

Go to your campaign settings:

  • Click Bidding

  • Choose Maximize Conversion Value

  • Or set a Target ROAS, such as 400% (4x return)
    Google Ads will automatically optimize bids based on the value of each click.

Use Case Example: Zara India

Let’s say Zara is running Google Ads for its online store in India. Each item has a different price — dresses may cost ₹2,500 while handbags cost ₹5,000. Instead of assigning a fixed value per sale, Zara sets up dynamic conversion tracking to capture the actual revenue. They configure their eCommerce platform to pass the exact order value to the Google Ads conversion tag. Now, they can see exactly how much each campaign, ad group, or keyword contributes in rupees. With this data, they switch to Target ROAS bidding to prioritize high-revenue-generating ads and stop wasting money on low-performing segments.

Conclusion
Setting up conversion value tracking in Google Ads is crucial for understanding the real business impact of your campaigns. It allows you to measure revenue, calculate return on ad spend, and make smarter bidding and budget allocation decisions. Whether you’re using a static value or dynamic values through Google Tag Manager or manual code, tracking conversion value gives you full visibility into the effectiveness of your advertising. Brands like Zara, Myntra, or Skechers rely on this feature to run profitable, scalable campaigns that focus not just on clicks, but on actual revenue generated.

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