Ecommerce merchants who have shopping campaigns in Google Ads can now see new types of data relating to users’ shopping carts. This data can be used to glean valuable insights into your exact profit, your products, and your users.
At the start of 2020, it is still in beta and the exact name Google will go with seems unclear. Various documentation refers to the feature as Google Ads Conversion Tracking with Cart Data though there’s hints it may also be Google Ads Conversion Tracking with Basket Data.
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“Conversion” can mean several different things depending on the context. In this case, conversions refer to the portion of visitors to a store or website who go on to make a purchase. The Google Ads conversion tracking (GACT) tool provides transaction and revenue data on purchases.
Cart data adds another layer of information on top of each conversion. Advertisers are able to see what items are purchased via ad clicks, which products convert better, what items are top sellers, and what profit was made.
With the standard GACT tracking, if you had segmented out product groups in your shopping campaign, the most you could know is what product was clicked on and how much revenue came from the purchase. Now with cart data, it can reveal what product was purchased even if it was different to the SKU clicked on in the shopping ad.
If you provide the cost_of_goods_sold field in your shopping feed, you can also see the profit. Using this data gives merchants a much better idea of how profitable their shopping campaigns are, which in turn helps them optimise campaigns even further.
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During the process of setting up conversions with cart data, you will have the opportunity to submit basket data and measure a number of metrics relating to your Shopping Ads.
Before you can submit your basket information, you need to either install Google Tag Manager or use Google’s global site tags. Google’s Tag Manager makes managing tags for your site easier. Rather than having to manually add and update tags on your website, you can do it through Google Tag Manager. GTM will automatically output properly formatted tags for you to use.
To set up your conversion with cart data, you first need to get the standard conversion tracking code for a purchase:
Once you have the standard code, you will need to send a purchase event (as only this can generate basket data) that contains 7 other parameters:
Parameters 1-3 Items: an array of 3 pieces of item information which is items.id, items.price, and items.quantity
Parameter 4. discount: the discount, if any, amount in an integer
Parameter 5. aw_merchant_id: the Google Merchant Center ID
Parameter 6. aw_feed_country: the country of the feed in your Google Merchant Center
Parameter 7. aw_feed_language: the language of the feed in your Google Merchant Center
Here is an example of the full output of a Google Ads Conversion Tracking with Cart Data triggered on a successful purchase:
<code>
<script type="text/javascript">
gtag('event', 'purchase', {
“send_to": "AW-1111111/xxxxxxx",
"transaction_id": "100000",
"value": 109.97,
"currency": "USD",
"discount": 5,
"aw_merchant_id": 1234567,
"aw_feed_country": "US",
"aw_feed_language": "EN",
"items": [{ "id": "PRO-ABC", "quantity": 1, "price": 50.97 }, { "id": "PRO-XYZ", "quantity": 2, "price": 24.5 }]
}); /* ]]> */
</script>
</code>
On top of the tracking code adjustment, you should make a feed adjustment by including your cost of goods sold (COGS) value in your shopping feed. You can add the cost_of_goods_sold feed if you want to use the data to calculate profit margins.
Shopify as of the end of 2018, provides the “Cost per item” field on all product pages, which DataFeedWatch is able to download. If your Shopify DataFeedWatch app hasn’t been updated since 2019, you can update it by clicking on the app to give it permissions to access this cost data. From there, in DataFeedWatch for your Google Shopping channel, you map the cost_of_goods_sold field to Shopify’s “Cost per item”:
You will find it under the ‘Optional Fields’ section.
A robust Google Analytics reporting software allows advertisers to track and analyze various metrics, including average cart size, average order value, revenue, and gross profit. By leveraging these insights, advertisers can better understand their product range, identify profitable opportunities, and optimize their Google Ads Shopping campaigns.
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If you are able to create test orders, you can check the parameters you have set:
mid: 1234567
fcntr: US
flng: EN
dscnt: 5
bttype: purchase
item: (50.97*1*PRO-ABC**)(24.5*2*PRO-XYZ**)
What each of these parameters equate to in the tracking code:
mid = aw_merchant_id
fcntr = aw_feed_country
flng = aw_feed_language
dscnt = discount
bttype = event type
item = items (the array) maps to (items.price * items.quantity * items.id)
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Merchants who deploy Google Ads Shopping campaigns can see a range of metrics relating to cart data in the standard interface. These metrics include:
Here’s an example of the new metrics for a client of ours. Note that the amounts won’t add up exactly as the client is updating the COGS for hundreds of products:
With this additional data, merchants can get a better feel for which of their products are driving the most transactions and which parts of their inventory are the most profitable. While it’s important to avoid overloading on data and keep focused on the metrics that matter the most, these new metrics are filling in the gaps in Google’s previous approach and are worthwhile additions to their data gathering. It will become the new ecommerce standard for shopping campaigns.
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Whenever Google makes a significant change to its infrastructure and algorithms, it has a habit of not communicating things very well. As a result, many website owners miss out on new capabilities and tools simply because they don't realise that they are there. Fortunately, with this update, it is quite hard to miss the new metrics that Google enables you to measure and track.
On the surface of it, or if you are still quite new to conversion tracking and Google advertising campaigns in general, the addition of new metrics might not seem like a big deal. However, there are some important advantages available to advertisers able to capitalise on these new capabilities.
In business, it is always important to know where your money is going. It is relatively easy to stay on top of your costs and profitability when you are a small business. However, as your business and product range grows, and your supply chains become more complex, it is easy to lose track of this important data.
The new metrics that Google is offering enable you to get a clearer picture of how profitable your campaigns are, and how you can optimise them to enhance profitability.
You can also use cart data to see how often a user clicks on one product and ends up buying another one. With this kind of insight, you might find out that some of your apparently less fruitful products are actually augmenting the sales of your most profitable products.
The more familiar you are with your product range, the easier it will be for you to sell them to other people. With the new cart data that Google provides, you can gain important insights into which of your products are driving your profits and which are driving the sales of other products. Of course, it will also reveal which products are the weak link in your line-up and provide you with some insights about what you can replace them with.
The better you understand your product range and your customer’s relationship with it, the easier it is to make the right decisions with your marketing.
For further insider secrets to make your Google Shopping campaigns profitable, you can download your free copy of Google Shopping for Shopify: The Definitive Guide.