Term
Conversion (SEA)
An advertiser-defined user action that counts as a successful outcome of an ad — purchase, lead, call, newsletter signup. The driver of Smart Bidding and the basis for ROAS, CPA, etc.
Conversion — in more detail
A conversion in the SEA context is an advertiser-defined user action counted as a successful outcome of an ad. Classic examples: a purchase in an online shop, a submitted lead form, a phone call, a demo signup, an app install, a newsletter subscription. Conversions are the steering foundation of modern accounts: every Smart Bidding strategy (tCPA, tROAS, Maximize Conversions/Value) needs them as a learning signal, and every key KPI (CPA, CVR, ROAS) is computed from them. A conversion can be tracked with or without a value — values are mandatory for tROAS and other value-based strategies.
Example / In practice
An online shop defines three conversion actions:
- Purchase (value = order value) — primary conversion, drives tROAS
- Add to cart — secondary, reporting only
- Newsletter signup — secondary, reporting only
Smart Bidding optimizes only for purchases; the others help observe the funnel without confusing the algorithm.
Distinction from similar terms
Conversion action is the configuration object in Google Ads; a conversion is the actual event. Conversion tracking is the measurement mechanism that captures the event. View-through conversions count Display impressions without a click.
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Conversion Tracking
The measurement setup that lets Google Ads recognize when a click led to a defined conversion. Typically implemented via the Google tag or Google Tag Manager.
LexikonSetting Up Conversion Tracking in Google Ads Correctly
Conversion tracking is the basis of every optimisation. Tracking methods, primary vs. secondary conversions, counting — and the most common errors.
NewsGoogle Ads launches Journey-Aware Bidding and expands Smart Bidding Exploration
Smart Bidding now learns from the full lead-to-sale funnel. Smart Bidding Exploration is rolling out to Performance Max and Shopping.