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Google AdWords Fundamentals

What is a conversion?

When someone reaches your landing page after clicking your ad or video
Any interaction with your ad that can be measured, like watching a video for a certain length of time
By definition when someone makes a purchase after clicking on your ad
An action defined as valuable to your business that someone takes after clicking on your ad

Correct Answer

An action defined as valuable to your business that someone takes after clicking on your ad

Why is this the correct answer?

A conversion is an action defined as valuable to your business that someone takes after clicking on your ad. Conversions are entirely customisable — businesses define what counts as a conversion based on their goals. Common conversion actions include purchases, form submissions, phone calls, newsletter sign-ups, app downloads, or even time spent on site. By defining and tracking these actions, advertisers can measure the real business value their ads generate and optimise campaigns toward the outcomes that matter most.

Why are the other options incorrect?

When someone reaches your landing page after clicking your ad or video

Reaching a landing page after clicking an ad is simply a click — it has no business value on its own and is not a conversion unless reaching that page is specifically defined as a conversion action.

Any interaction with your ad that can be measured, like watching a video for a certain length of time

Watching a video for a certain length of time is a type of engagement that can be tracked, but it is more accurately an interaction metric than a conversion unless specifically configured as one.

By definition when someone makes a purchase after clicking on your ad

Conversions are not limited to purchases — they can be any valuable action defined by the business, including leads, calls, sign-ups, or downloads. Limiting to purchases is too narrow.

Real-World Example

A B2B software company defines three conversion actions: demo request form (value £200), free trial sign-up (value £50), and pricing page visit (value £10). Their Google Ads conversion tracking records all three, giving a complete picture of campaign value rather than just counting clicks or purchases.

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