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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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