How to Set Up Profit on Ad Spend Tracking Instead of Return On Ad Spend Tracking Using GCLID

Step 1: Set Up Conversion Tracking in Google Ads

• Log in to your Google Ads account and navigate to the “Tools & Settings” menu.
• Click on “Conversions” and then “New Conversion” to create a new conversion action.
• Give your conversion action a name and select “Website” as the source.
• Set up the conversion tracking code on your website and verify that it is tracking conversions correctly.

Step 2: Determine the Profit Margin for Your Business

• Calculate the profit margin for your business by subtracting the cost of goods sold (COGS) from the revenue generated by each conversion.
• The profit margin is expressed as a percentage of revenue and represents the amount of profit your business makes on each conversion.

Step 3: Set Up a Custom Conversion Value in Google Ads

• In the “Conversion Action” section of your conversion settings, select “Use different values for each conversion”.
• Enter the profit margin percentage as the custom conversion value.

Step 4: Set Up GCLID Parameters in Your URL

• Add the following parameters to your website’s URL: “?gclid=INSERT_GCLID_HERE”.
• The GCLID parameter will capture the unique identifier for each click on your ad and allow you to track the revenue and cost associated with each conversion.

Step 5: Set Up Profit on Ad Spend Tracking in Google Analytics

• Log in to your Google Analytics account and navigate to the “Admin” section.
• Click on “Goals” and then “New Goal” to create a new goal.
• Give your goal a name and select “Custom” as the goal type.
• Enter the conversion value as the profit margin percentage and set the goal type as “Event”.
• Set up the event tracking code on your website to track the GCLID parameter and associate it with each conversion.

Step 6: Set Up a Custom Report in Google Analytics

• Create a custom report in Google Analytics that includes the following metrics: clicks, cost, revenue, and profit.
• Use the GCLID parameter to associate each conversion with its corresponding cost and revenue data.