The PPC Managers Guide to Google Ads Enhanced Conversions [2025]

Last Updated on 19 May 2025 by Stu Edwards

Enhanced conversions for Google Ads is the secret weapon every modern PPC manager needs to navigate a privacy-first world.

With third-party cookies phasing out and privacy regulations tightening, tracking ad performance has never been more challenging — or more crucial.

Enhanced conversions bridges the gap, giving you access to accurate, actionable data without compromising user privacy.

This guide will walk you through everything you need to know about Enhanced Conversions: what they are, how they work, and why they’re a game-changer for improving your campaign performance.

If you’re ready to unlock smarter tracking and better results, let’s dive in.

What are Enhanced conversions in Google Ads?

Enhanced conversions is Google Ads’ way of helping you track conversions accurately, even in a world where privacy laws are stricter than ever.

It works by using hashed first-party customer data — like email addresses, phone numbers, or home addresses — to match user actions back to ad interactions.

And the best part is it’s designed to respect user privacy every step of the way.

💡 Hashing explained

Hashing is a process that converts data — like an email address — into a unique, scrambled string of characters called a hash.

Eg – the email jane.doe@example.com might become 9c8d1b78061ff5c5e2a7cd540d4c0012.

The same email will always produce the same hash, but the process is one-way — it’s impossible to reverse the hash to reveal the original email.

This makes hashing a secure way to handle sensitive information, as used in Google Ads Enhanced conversions.

Why the shift to Enhanced conversions? Cookies are no longer enough.

A few years ago, cookies were enough.

They tracked everything — ad clicks, site visits, conversions.

But today they’re crumbling under the weight of tighter regulations like GDPR and CCPA and evolving user preferences for more privacy online.

For advertisers, this meant losing visibility into what happens after someone clicks an ad.

Without accurate data, it became harder to:

• Prove which campaigns drive real results
• Optimise targeting and ad spend
• Maximise return on investment (ROI)

How do Enhanced conversions work in Google Ads?

Imagine you run an ecommerce business selling handmade wax jar scented candles.

1. Your customer takes an action. A visitor clicks on on of your Google Shopping ads, lands on your website, and purchases a scented candle. During the checkout stage, they provide their email address and phone number.

2. Google receives the “anonymous” hashed data. Your website collects this information as part of the transaction. But instead of sending raw data to Google Ads, the system hashes (encrypts) it. This turns sensitive details — like the email address — into a string of scrambled characters, keeping the customer’s data secure and private.

3. Google matches it. Google Ads takes the hashed data and matches it with a user’s logged-in Google account (if there’s a match). This confirms that the person who bought the candle is the same one who clicked your ad.

4. You get better reporting. Now, your Google Ads dashboard doesn’t just show a click — it shows a conversion tied to the original campaign/adgroup/keyword/ad. This helps you see which ads drive sales, refine your targeting, and improve your ad strategy.

How to set up Enhanced Conversion in Google Ads in 4 steps

If you’ve been struggling with tracking conversions or getting clear data from your Google Ads campaigns, this step-by-step guide will walk you through the process.

Step 1: Enable Enhanced conversions in your Google Ads account

First, let’s enable Enhanced conversions in your Google Ads account:

• Log in to your Google Ads account
• Go to Goals > Settings
• Find the Enhanced conversion tab
• Toggle on ‘Turn on Enhanced conversions’
• Select a method for managing user-provided data – either Global Site Tag or Google Tag Manager.

That’s it — Enhanced conversions is now enabled.

Next, we’ll set up the correct tracking method to push that user-provided data to Google.

Step 2: Add tracking to your website

Your tracking is how Enhanced conversions collects data from your website – like email addresses or phone numbers – when someone completes a conversion action (like making a purchase or filling out a lead form).

Here’s how to set it up:

Option 1: Via Google Tag Manager

If you’ve read our Google Ads conversion tracking guide, you’ll know we’re big believers (and users) of Google Tag Manager, and use it for 99% of our Enhanced conversion setups.

In the below, we’ve assumed you’ve already set up you Google Ads Conversion Tracking tag.

➡️ 1. Open your Google Ads Conversion Tracking tag
➡️ 2. Tick the ‘Include user-provided data from your website’ box

If you don’t have a user-provided data variable defined, you’ll need to create one.

➡️ 3. Select ‘New variable’

➡️ 4. Next you’ll see the Variable Configuration window. The Variable Type should default to ‘User Provided Data’. If not, select it!

Then you have 3 options – Automatic collection, Manual configuration, or Code.

• Automatic: “Automatically inspects the page for strings that match a pattern for email addresses”
• Manual: “Manually specify variables where user-provided data should be extracted from.”
• Code: “Select a variable that will return structured user-provided data.”

(This resource from Google does a much better job of describing those!)

In most cases, Automatic or Manual are fine – although we use the Code option on our own site.

In this example, we’ll use the Manual option – and specify a variable for Email and Phone.

We already have variables called {{GA4 User Email}} and {{GA4 User Phone Number}}.

These are data layer variables that are tied to events.

➡️ 5. Once you’ve defined your variables for your user provided data, name it something logical and hit save!

Option 2: Global Site Tag (gtag.js)

1. Copy the tracking code from your Google Ads account.
2. Paste the code into the section of your website on pages where conversions happen.

Step 3: Let Google handle the rest

Here’s the cool part: Enhanced conversions automatically hashes sensitive data (like emails or phone numbers) before sending it to Google.

This keeps your customers’ information safe while giving you more accurate insights.

Step 4: Test your setup

Before you call it a day and pat yourself on the back, make sure everything is working:

Perform a test conversion

In the Tag Manager preview mode, push through a conversion yourself to see if the user-provided data is being captured.

In the ‘event’ that triggers your conversion – check that the variable you’ve created is visible.

In our example below, you can see that the form_submit event captured my test stu@gmm.com email submission as part of the User Data variable.

Check the Diagnostics tab in Google Ads

You’ll need to wait a few days for this, or until conversions actually happen in the account, but you can see in the conversion dianostics tab if Enhanced conversions is correctly configured – and if not, what you need to do to fix it!

If you click ‘See details’, it’ll show you the status of the Enhanced conversion, and if you have any issues.

If everything looks good, you’re ready to go!

Best practices when using Google Ads Enhanced conversions

On preparation and planning

A solid foundation is key to success. Here’s how to set yourself up:

1. Choose the right conversion actions

Focus on meaningful actions – like purchases or form submissions. Basically conversion events where user provided data is captured.

2. Plan the transition

Run Enhanced conversions alongside your current tracking for about 30+ days.

Use this time to compare results, spot inconsistencies, and document findings. A simple spreadsheet works wonders here.

On technical implementation

Ensure proper setup with specific tools and tailored steps.

Ensure you build a robust tagging solution, and create tags and triggers for your key conversions:
eg:

• For e-commerce: Checkout form submissions.
• For lead gen: Enquiry form submissions or thank you pages.
• For SaaS: Demo requests or sign-up confirmation pages.

Tools like Google Tag Manager makes this process smoother!

On privacy and compliance

Adhere to global privacy standards and respect user consent:

• Use consent mode in regulated regions: If operating in the EEA or UK, set up Consent Mode to tag user interactions (e.g., consent granted) while maintaining anonymity for users who decline tracking. Tools like Cookiebot or OneTrust can streamline user consent workflows.
• Maintain compliance with regional laws: Familiarise yourself with GDPR and CCPA requirements.

For example:

• Provide users with clear opt-in/opt-out options.
• Implement policies to delete hashed data after 30 days to avoid unnecessary retention.

On testing and optimisation

1. Test your tags

Use tools like Google Tag Assistant to make sure tags are firing correctly and capturing the right data. Run test submissions to double-check accuracy.

2. Adjust based on your results

• Review data after 60 days to spot high-performing campaigns and audiences.
• Optimise keywords – pause underperforming ones and double down on the winners.
• Potentially shift budgets to other campaigns if they show increase conversion performance.

On judging Enhanced conversion data

Identify your top campaign types.

Enhanced Conversion data might reveal hidden gems, like your YouTube campaign driving 20% more top-funnel conversions while Search Ads contribute only 10% more.

6 reasons why Enhanced conversions is so valuable

Enhanced conversions take your tracking to the next level by filling in the gaps left by traditional methods.

They help you capture more accurate conversion data, optimise ad performance, and stay ahead in a privacy-first world.

Here’s why it matters:

👍 Better insights into cross-device conversions: Over time, I’ve noticed that Enhanced conversions give us a much clearer view of how users interact across multiple devices before converting. We assume this is because enhanced conversion tracking matches user data across sessions and devices, reporting on touchpoints that were previously invisible.

👍 More accurate conversion data: Traditional tracking methods struggle with accuracy due to privacy regulations and user tracking opt-outs. Enhanced conversions bridges this gap by securely hashing first-party data and matching it with logged-in Google accounts.

👍 Better campaign performance: With more reliable data feeding Google’s AI-driven tools, features like modeled conversions and automated bidding work more effectively. This means your campaigns aren’t just optimised for clicks — they’re tailored to drive meaningful actions like sales or sign-ups.

🧠 Common misconception:

Many advertisers expect Enhanced conversions to instantly boost campaign performance.

But its true value lies in enhancing tracking accuracy and attribution over time.

Since Google’s machine learning thrives on data volume, the benefits might take time to fully materialise, especially for smaller accounts with lower conversion volumes.

👍 Improved bidding accuracy: Enhanced Conversions supports value-based bidding, which helps focus your ad spend on conversions that truly impact your bottom line. Instead of chasing vanity metrics like clicks, you can prioritise high-value actions and allocate your budget to what delivers the best return.

👍 Increased visibility into the customer journey: By connecting the dots between ad interactions and final conversions, Enhanced Conversions gives you insights into your most effective touchpoints. For instance, you can see whether it’s the initial ad click or a remarketing ad that leads to the final sale.

👍 Resilience in a privacy-first world: As privacy regulations tighten and third-party cookies phase out, Enhanced Conversions provides a future-proof solution. By leveraging hashed first-party data, it ensures compliance with privacy standards while maintaining conversion tracking accuracy.

Regular Google Ads conversion tracking vs Enhanced conversions

The main difference between regular Google Ads conversion tracking and Enhanced conversions lies in how conversion data is collected, processed, and used to optimise campaigns.

Regular conversion tracking

This method captures basic conversion actions triggered by customer interactions, such as form submissions, purchases, or phone calls.

These conversions are tied to ad clicks or impressions, allowing marketers to attribute performance to specific campaigns.

But regular tracking has its limitations. It doesn’t collect customer-specific data, meaning gaps can arise when cookies are blocked, or when cross-device conversions occur.

As a result, insights may be incomplete – leading to less precise campaign optimisation and clarity on data.

Enhanced conversion tracking

This method goes beyond basic actions by incorporating hashed, first-party customer data like email addresses or phone numbers.

This information, when matched with signed-in Google accounts, allows for deeper attribution insights — connecting ad interactions to actual conversions while maintaining user privacy.

Enhanced Conversion Tracking doesn’t just count conversions, it identifies the touchpoints that drive the most valuable actions, giving advertisers a clearer picture of their ROI and enabling better optimisation.

Final thoughts

Enhanced conversions in Google Ads offer a much-needed solution to today’s privacy-first advertising challenges.

This feature helps bridge the gap between lost data and actionable insights, which empowers marketers to measure what truly matters—conversions that drive growth.

But here’s the thing: Enhanced conversions aren’t a set-it-and-forget-it solution. They work best when paired with robust tagging, a strategic approach to data collection, and thoughtful optimisation. It’s a tool, not a magic wand.

When done right, though, Enhanced conversions can be the key to smarter bidding, sharper campaign strategies, and stronger results in a privacy-conscious world.

Now it’s your turn — build a better framework, embrace smarter tracking, and let Google’s AI-powered insights do the rest.

If you need help with enhanced conversion tracking, schedule a call with us and we’ll get back to you ASAP.