# Track offline conversions from online ads

We’ll get you started on a simple ad measurement model that you can bring to the boardroom (or water cooler) that gets everyone thinking about the full impact that digital is contributing. Then we’ll go over how you can potentially get even better data to work with.

## Calculate the value of offline conversions driven by your online ads

Step 1: Let’s gather some data about your offline conversion rates and order values.

Example
Data point 1: Number of store visit conversions = 7,500

#### Tip

If you aren't eligible for shop visit reporting, you can make some assumptions about the number of shop visits that you've received by reviewing clicks on the 'Get Directions' or 'Get Location Details' links in your location extensions. You can make some assumptions about how many people visited your shop who expressed interest by clicking on those links.

Data point 2: Visit-to-sale conversion rate = 30%
How many of those who visited your location after seeing an ad are likely to make a purchase?

Data point 3: Average order value at your location = \$50
What is the average order size of an offline purchase?

#### Tip

If you have limited data to calculate these figures, reach out to your shop or local marketing teams.

Step 2: Use this formula to figure out the offline return from your search ads:

Attributable shop sales = Total shop visits x Store conversion rate x Average conversion value

Attributable OFFLINE transactions = 2,250 (or 7,500 * 30%)

#### Tip

Attributable OFFLINE sales revenue = \$112,500 (or 2,250 * \$50)

Using this simple model, you can estimate that for every \$1 invested, you’re making \$5.63 in offline sales and \$10 in total sales. Now you can optimise your bids using a more accurate measure of return from your ad dollars. In this case, you can bid up until your CPA is about 130% higher and still achieve the same return on ad spend.

#### Case study (search)

Matalan, a leading retailer in the UK, used shop visit reporting to discover that for every one website transaction driven by its online ads, an additional six customers visit a shop. By measuring offline purchases with shop sales (direct upload), the brand also found that it generated £46 for every £1 spent on mobile ads, £31 of which came in-store.

Through Google's shop visit solution, IHOP gained useful consumer insights that helped them drive visits from YouTube for less than \$1 per guest.

Elgiganten, a Swedish electronics retailer, found that its video campaigns brought 6%–10% of users who viewed its ad on YouTube to its shops. Overall, the brand has seen an 8.8% increase in its sales and learned that its search traffic delivers a 21% higher return on ad spend on mobile phones versus desktop.

#### Case study (GDN)

Lawson, a convenience store chain, was the first advertiser in Japan to use shop visits. With a richer view of its offline performance, the brand learned that mobile ads were more effective and cost-efficient at driving foot traffic to its stores, saving them 45% more in costs per visit compared to desktop and tablet ads.

Understanding total omnichannel ROAS used to require a number of broad assumptions. As new tools have become available, though, you can now rely more and more on actionable data that removes the need for estimates.

Here are some options to consider:

Measurement to use... If you want to...
Shop visit reporting* Estimate the number of visits to a business location driven by Google search and display ads.
Shop sales (direct upload)* Attribute offline shop sales that are driven by Google search and Shopping ads. This can also be used with data in your CRM or loyalty system.
Conversion import Supplement shop visits and shop sales reporting in Google Ads with imported data from your CRM.
Search Ads 360* Report in-store conversions for all search networks compatible with Google Marketing Platform.