Quick answer: A conversion in PPC is a measurable user action that has business value: a sale, a lead form submission, a phone call, a booking, an app install. Conversions are how PPC moves from being about clicks (volume) to being about outcomes (revenue). Smart Bidding, account optimisation, and ROI measurement all depend on conversion data.
What Is a Conversion in PPC?
In Google Ads, a conversion is a specific action taken by a user after clicking your ad that you have defined as having business value. Conversions are the primary measure of whether your PPC spend is delivering results.
A click is not a result. A conversion is.
Common PPC Conversion Types
- Form submission: A contact, quote, or enquiry form completed on your site
- Phone call: A call made from a call extension or tracked via a Google forwarding number
- Purchase: An ecommerce transaction with a tracked value
- Live chat: A chat session initiated through your website
- Download: A brochure, guide, or resource downloaded
- Page visit: A specific high-intent page visited such as a thank-you page
Primary vs Secondary Conversions
Google Ads lets you mark conversions as “primary” (used for bidding) or “secondary” (reporting only). Use primary conversions for the actions that most directly indicate a customer, typically form fills and calls. Avoid using micro-conversions like page visits as primary, or Smart Bidding will optimise towards the wrong goal.
Why Conversion Tracking Matters
Without conversion tracking, you are flying blind. You will know which ads got clicks but not which ones generated leads. Setting up conversion tracking correctly is one of the first things we do in our PPC service.
Types of Conversions
- Hard conversions: actions with direct revenue or near-revenue value (purchases, qualified leads, bookings).
- Soft conversions: actions that signal interest but are not transactions (email signups, content downloads, video views past 50%).
- Phone conversions: tracked via Google’s call extensions or website call tracking.
- Offline conversions: actions that happen offline (a closed sale from a lead form) imported back into Google Ads via the Offline Conversion Import.
Best Practices for Conversion Setup
- Track multiple conversion types but set clear primary vs secondary status. Smart Bidding optimises only toward primary conversions.
- Assign conversion values where possible. A £200 lead and a £20 lead should not count equally.
- Pick the right attribution model. Data-driven attribution is now Google’s default and usually the most accurate.
- Set reasonable conversion windows. 30 days is the default and fits most B2C; B2B with longer cycles may need 60 to 90 days.
- Audit conversion accuracy quarterly. Common issues: pixel firing on every page reload (double-counting), GA4 and Google Ads counting independently (also double-counting), or critical conversion paths missing entirely.
Frequently Asked Questions
What is the difference between a conversion and a click?
A click is when someone interacts with your ad (visits your page). A conversion is when that visitor takes a valuable action on your site. The ratio of conversions to clicks is your conversion rate. PPC accounts that focus only on clicks burn budget; ones that optimise for conversions deliver outcomes.
How accurate is Google Ads conversion tracking?
Reasonably accurate when set up properly, but not perfect. Privacy regulations, ad blockers, cross-device journeys, and offline conversions all create gaps. Most accounts undercount conversions by 10 to 30 percent compared to actual customer counts. Pairing Google Ads with GA4 and offline conversion imports closes the gap.
What is conversion modeling?
Google’s machine learning that estimates conversions when direct measurement is impossible (e.g. when a user browses without consenting to cookies). Modeled conversions appear in your reports alongside observed ones. They’re generally accurate at scale but less reliable for low-volume accounts.
Should I count newsletter signups as conversions?
Track them, but as secondary conversions only. Setting newsletter signups as primary causes Smart Bidding to optimise toward email captures rather than revenue. The result: lots of low-quality signups, poor ROI. Reserve primary conversions for actions with real business value.
Take this further
Conversion tracking is the foundation under everything else in PPC. We audit accounts and consistently find the conversion setup is the biggest hidden issue.
Ready to apply this to your own site? Book a free discovery call, or explore our PPC packages.