A common question asked by marketers today – Why is there a big difference between Adwords conversion revenue and Google Analytics Paid Search conversion revenue?
Below are a few reasons why there will be a difference.
Google Adwords:
Google Adwords has a cookie expiration of 30 days.
Google Adwords matches conversions to clicks.
Google Adwords campaign attribution cannot be overwritten by other traffic sources.
Google Analytics:
Google Analytics, by default, has a campaign cookie expiration of 6 months.
Google Analytics matches conversions to visits.
Google Analytics campaign attribution is overwritten by the most recent campaign visit (by default), excl. direct traffic.
Scenario:
A visitor clicks on a Google Paid Search text ad on 19 July and does not make a purchase. The same visitor, using the same PC and browser returns to the website 2 days later by typing the website address in their browser and makes a purchase.
Outcome:
Google Adwords: Records the conversion at click-date, 19 July.
Google Analytics: Records the conversion in the visit which resulted in the transaction, 21 July.
* Even if Google Adwords is linked to Google Analytics, Google Analytics will assign the conversion to the date of the transaction (the visit in which the purchase occurred), not the original date the ad was clicked.
Scenario:
A visitor clicks on a Google Paid Search text ad on 15 June and does not make a purchase. The same visitor, using the same PC and browser returns to the website 35 days later by typing the website address in their browser and makes a purchase.
Outcome:
Google Adwords: Does not record the conversion, as the conversion occurred after the cookie expired.
Google Analytics: Records the conversion in the visit which resulted in the transaction, 19 July. (35 days after 15 June)
Notes: Adwords has a cookie expiration of 30 days. Google Analytics, by default, has a campaign cookie expiration of 6 months. This can be amended, using the _setCampaignCookieTimeout() method. More information relating to changing the length of the cookie here: http://code.google.com/apis/analytics/docs/gaJS/gaJSApiCampaignTracking.html#_gat.GA_Tracker_._setCampaignCookieTimeout
Scenario:
A visitor clicks on a Google Paid Search text ad on 19 July and does not make a purchase. The same visitor, using the same PC and browser returns to the website 2 days later, after clicking on an email, which is tagged with _utm tags.
(Utm Tags: http://www.google.com/support/analytics/bin/answer.py?answer=55518)
Outcome:
Google Adwords: Records the transaction on 19 July (date of click), as the conversion occurred during the 30 day cookie period.
Google Analytics: Records the transaction, but it is not attributed to Adwords. By default, the most recent campaign (email campaign) receives credit for the conversion, although this can be amended.
Understanding the differences between Google Adwords and Google Analytics will help you understand why each platform is reporting different revenue.
Jack works for a digital marketing agency and Jill is an online marketing manager at a reputable multi-channel brand, located in South Africa. Jill’s CEO has decided they need to go with Jack’s digital agency – so they need to meet!
After a fabulous welcoming and lovely chatter, they enter the work part of the meeting … “Well I guess we better speak about the digital strategy going forward.” Jill, “Yes, this is very exciting. Our new website is launching in about two weeks.”
Jack has numerous questions in his mind. “I wonder how Jill’s business or web development partner decided on how their new website will function; I wonder what results are expected.”
Jack asks Jill, “Okay, I’ve got a few questions – What is the goal of your website? What results are you expecting?” Jill thinks to herself, ‘The goal of the website, that’s quite a question, erm, for people to purchase items?”
Jill replies, “To get sales. That’s what we need! We are not sure what to expect, but we look forward to seeing what happens. Our improved website is going live in two weeks, so now we need more sales. I know about SEO and PPC, let’s do it. Oh, we are also going to need banners! We are going to send out emails to our existing users, and later this year we are going to launch a mobile friendly version of our website, I heard that mobile is so important. We probably need to get more social too.”
I’d like to stop the above conversation and highlight a few points.
Is it an odd question to request what the goals and objectives of the website are, especially in the case where there is one main conversion goal – users purchasing from the website. Clearly, a strategy is required. But how often are strategies implemented?
What has happened to defining business and website goals, where the website goals is aligned with the business goals? I’m not saying everything needs to be strictly scientifically calculated, I’m saying that there needs to be a web analytics strategy. Proper planning will help define the way forward and create the ability to evaluate whether a campaign initiative successfully contributed to the business and website goals. Too often I find that, due to a lack of planning, the digital aspect of a business goes around in circles.
Web Analytics is the answer.
Web Analytics, which includes the full digital spectrum, allows on-going digital strategy. Web Analytics encompasses Measuring Marketing Campaigns, Site Optimisation and embeds the culture of real integrated measurement and online strategy.
Web Analytics involves agreeing on the goals of the website and deciding how and where these goals will be measured. It may even involve integrating CRM with the data. It’s not only about quantitative data. The qualitative side is just as important when trying to understand why something is successful, or not. It involves explicitly defining website indicators will be used to evaluate each goal. It is easy to see what happens, but being able to tell why a campaign is performing the way it is, is important. Web Analytics involves how the goals of each marketing channel differ and how and where they will be measured.
This will lead to what changes need to take place with marketing campaigns, site optimisation and possibly even operational changes within your organisation, especially in the case where the conversion goes beyond website interaction.
Perhaps email marketing, a retention channel, needs to be increased or improved. Perhaps a portion of Social Media budget should be allocated elsewhere, yet still within the Social Media budget. Perhaps Display advertising should be more targeted and have its’ own micro-site or landing page. Perhaps Paid Search budget should be increased, or is over spending.
I believe it is up to the digital marketers in South Africa to ensure that online maturity continues to grow in leaps and bounds.
Disclaimer: These thoughts are my own and yes there is so much more to web analytics! So few have a solid digital measurement and optimisation strategy.
Thanks to this random website (http://www.carlscorner.us.com/) that gave me a ridiculous picture of jack and jill.
I attended Cape Town’s first Web Analytics Wednesday. It was good to see 50+ people come together to discuss Web Analytics and Digital Marketing. Hoping that there will be many more Web Analytics Wednesdays in Cape Town

My Notes on the #gthink webinar Hosted by Avinash on 19 May.
Well, I attended think marketing with Google webinar …
Here is my summary
Even although there is so much we can measure in digital marketing. Outcomes are core and this is the focus of the webinar!
There are 3 buckets of evolution
- Toddler phase. Ok we get the CPA.
- Rocking teen phase. Grow up and measure a bit more on the ads you see in the space!
- Ninja phase. End by talking about the adult stage, Crème de la crème and amazing measurement!
*Move beyond only cost and focus on outcomes!
Credit to Avinash for the below image.
Credit to Avinash
Toddler Phase:
- The Funnel Analysis in Google Analytics shows a lot of awesome analysis. You can see assisted conversions! Number of Impressions leading up to conversion!
- Mobile Ads – You can even track number of missed calls!
Rockin teen phase:
- Enter Revenue metrics and Average Order Size! Not only purely CPA.
- Begin to focus on Costs of Goods sold and Net Profit! Measure this!
Ninja phase:
- What do adults do in digital marketing (Ninja’s)
- You need to know the Economic value!
- What about the 98% of people that did not convert? Is what we should obsess about!
- What is the business impact on the other visitors (Non Converting) Micro Conversions?
- An example of measuring micro conversions:
- Track Newsletter sign-ups – That’s a conversion right there!
- Request a catalogue! There’s another one.
- What about an Application download?
- These are all micro conversions and give the user value! They should be measured.
- Reports also look much sexier . You are measuring a lot more of the audience of that visit your website.
- You can Segment and Hyper focus this!
- Social, Search, Display Email –segment these in the Micro and Macro conversions!
- So don’t only focus on e-commerce outcomes only.
- Look at business value by looking at more than just cost and revenue, but also Macro and Micro conversions – The Economic value!