How do enhanced conversions work?

When a customer interacts with a website and completes a conversion, various data such as their email address, name, home address, or phone number can be collected and recorded in the website’s conversion tracking tags. Before transmitting this data to Google, it undergoes hashing using a secure one-way algorithm called SHA256, which transforms the data into a unique set of characters.
This process ensures the data remains private and secure during transmission. Subsequently, the hashed data is sent to Google, where it is matched with signed-in Google accounts to attribute campaign conversions to ad events such as clicks or views. This procedure enables advertisers to precisely track conversions while upholding user privacy. In addition to providing enhanced conversion tracking for Google Ads and Google Analytics 4, this feature also enables advertisers to utilise the hashed data to create custom audiences for advertising. By creating custom audiences based on hashed customer data, advertisers can deliver more pertinent ads to their customers while still safeguarding their privacy.

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Why is the enhanced conversions feature so important?

In recent years, data privacy has emerged as a significant concern for both users and companies. The introduction of data privacy laws such as GDPR and CCPA, coupled with updates to web browsers like Safari’s ITP and Firefox’s ETP, has made tracking user data more challenging for advertisers and marketers. Consequently, features like Google’s enhanced conversions have become essential for ensuring accurate conversion tracking while also protecting user privacy. GDPR and CCPA have had a substantial impact on how companies gather and process user data. They have fostered increased transparency and control for users over their personal data but have also made it more arduous for companies to accurately track user data. Consequently, features like Google’s enhanced conversions have gained prominence in ensuring accurate conversion tracking while also safeguarding user privacy and operating within restricted data processing guidelines.

Safari’s Intelligent Tracking Prevention (ITP) and Firefox’s Enhanced Tracking Protection (ETP) are two browser updates that have made tracking user data more challenging for advertisers and marketers. ITP in Safari was initially introduced in 2017 with the release of Safari 11.0. Its aim is to curtail the ability of third-party cookies to track users across websites, thereby enhancing user privacy. With ITP activated, third-party cookies are erased after 24 hours of inactivity or after 30 days, depending on the specific type of cookie. Moreover, ITP restricts third-party cookies’ access to first-party cookies, making it more intricate to track users across websites.

Firefox’s Enhanced Tracking Protection (ETP) was first introduced in 2018 with the release of Firefox 63.0. ETP blocks third-party tracking cookies and other tracking technologies by default, bolstering user privacy. ETP in Firefox utilises a list of known tracking domains to obstruct tracking cookies and other tracking technologies. Additionally, ETP impedes fingerprinting, a technique employed to track users based on unique browser configurations. Both ITP and ETP have undergone multiple updates since their inception, with each update further constraining third-party cookies and other tracking technologies’ ability to track users. These updates have made it increasingly challenging for advertisers and marketers to accurately track user data, necessitating the use of first-party data and the implementation of features like enhanced conversions.

To set up Enhanced Conversions for Google Ads or Google Analytics 4, you’ll need:

  • Access to the correct Google Ads/Google Analytics 4 profile and Google Tag Manager account.
  • The ability to place a test order or initiate a test lead action.
  • Availability of first-party data on the page (or in the dataLayer) where the conversion tag is triggered.

For further information on implementing enhanced conversions, contact Ayko now.