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AdWords Cost Discrepancy.

[ Edited ]
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# 1
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Conversion * Cost per Conversion. Converted Clicks * Cost per Converted clicks. When multiplied out, these numbers are slightly different, but they are different than the total cost by 10%. This means 10% of the money I spent last year on clicks is not being calculated in the conversion cost. Click Refund accounted for $77, which is minute fraction of 1% of the money missing from cost per conversion.

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Marked as Best Answer.
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Accepted by MosheTLV (Top Contributor)
February 2016

Re: AdWords Cost Discrepancy.

Top Contributor
# 7
Top Contributor

Hi @Chris H

 

First thing first, what do you mean by total cost? Do you mean the total cost column on the reporting table or your manually calculated total cost for the year from the invoices or billing tab?

 

Let me assume you are talking about the first scenario. I went ahead to test this on two accounts which have conversion setup through out the year and they track transaction specific conversion values. But i don't see any discrepancy -

 

conversion-costs.PNG

 

  • Conversions x  Cost Per Conversion = 1816x619.09 = 1,124,140.30
  • Converted Clicks x Cost Per Converted Click = 1169x673.62 = 1,124, 271.78
  • All Conversion x Cost / All Conversion = 1946x577.73 = 1,124,262.58

This test is based on all enabled campaigns for now. However, the results do not show difference for all campaigns enabled or paused as well. And yes, I have tested it on two different account as well. 

 

The reason for discrepancy, if any, can be - conversion pixel itself. Was pixel tracking properly throughout the year?

 

And yes,  the invalid clicks data do not affect the metrics we talked about above. Invalid clicks are already excluded, they don't affect account statistics. 

 

Thanks
Ratan Jha

 

 

 

 


About Me: Community Profile | Ratan Jha INC. | Splashsys Webtech
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Re: AdWords Cost Discrepancy.

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# 2
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Converted clicks is the number of conversions actually directly attributed to an Adwords click. So this is usually a smaller number than conversions or total conversions.

Always use converted clicks when assessing your cost. Conversion columns can be a little "vague". Google has changed what is included in these columns several times now.

Re: AdWords Cost Discrepancy.

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# 3
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I understand the difference, which is why I made a point to show that both of those columns resulted in discrepancies compared to total cost. There are two levels to this discrepancy. The converted clicks cost not matching the conversions cost, only by about 2%. But more importantly, both of those numbers don't match total Cost, and are off by 10% of the yearly budget. Which is a lot of money to not be attributed to anything.

Re: AdWords Cost Discrepancy.

Rising Star
# 4
Rising Star

@Chris H

 

you have definitely piqued my interest here. You've accounted for invalid activity credits, and established you understand the difference between the two. When I first read this my first thought was that you didn't have conversion tracking enabled the entire time.  I went and checked an account where I knew I had conversion tracking enabled for the entire year of 2015.  Guess what? I too am seeing a noticeable difference in the same calculations.  Mine is just at 6%, but still makes me wonder what is going on.  My invalid activity credits during this period were also insignificant.

..

Is this account you are asking about prepay or post pay? Mine is post pay, and the starting and ending balance of the time period in question almost matches up to the amount of the discrepancy. Not sure why that would matter, but it's an observation I'm able to make. If for some reason this is the answer, it brings the discrepancy down below 2%.  There is however still a discrepancy....


Re: AdWords Cost Discrepancy.

[ Edited ]
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# 5
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I am glad someone can relate to my concern. My account is a PrePay.

Re: AdWords Cost Discrepancy.

[ Edited ]
Top Contributor
# 6
Top Contributor

This sounds a bit odd. Too late for me to check now, I'll look tomorrow. But for the meanwhile, let's ping someone who is  shortly awake and check. Smiley Surprised

@Ratan-Jha ?

@Rakesh Kumar ?

 

Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
Did you find any helpful responses or answers to your query? If yes, please mark it as the ‘Best Answer’
Marked as Best Answer.
Solution
Accepted by MosheTLV (Top Contributor)
February 2016

Re: AdWords Cost Discrepancy.

Top Contributor
# 7
Top Contributor

Hi @Chris H

 

First thing first, what do you mean by total cost? Do you mean the total cost column on the reporting table or your manually calculated total cost for the year from the invoices or billing tab?

 

Let me assume you are talking about the first scenario. I went ahead to test this on two accounts which have conversion setup through out the year and they track transaction specific conversion values. But i don't see any discrepancy -

 

conversion-costs.PNG

 

  • Conversions x  Cost Per Conversion = 1816x619.09 = 1,124,140.30
  • Converted Clicks x Cost Per Converted Click = 1169x673.62 = 1,124, 271.78
  • All Conversion x Cost / All Conversion = 1946x577.73 = 1,124,262.58

This test is based on all enabled campaigns for now. However, the results do not show difference for all campaigns enabled or paused as well. And yes, I have tested it on two different account as well. 

 

The reason for discrepancy, if any, can be - conversion pixel itself. Was pixel tracking properly throughout the year?

 

And yes,  the invalid clicks data do not affect the metrics we talked about above. Invalid clicks are already excluded, they don't affect account statistics. 

 

Thanks
Ratan Jha

 

 

 

 


About Me: Community Profile | Ratan Jha INC. | Splashsys Webtech
If this or any other post solved your question, do not hesitate to accept it as the solution.

Re: AdWords Cost Discrepancy.

[ Edited ]
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# 8
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Our account has run for years, never without an active conversion pixel. I am not sure we are on the same page, and I am annoyed that a community manager went ahead and marked the correct answer.

 

Scenario: A client multiples the CPA by Conversions that I have reported to them. They call me up to let me know that I have spent less money than I invoiced (their card is not in the account). How do I explain this discrepancy to them? Even I can see how they might assume I am pocketing money.

 


[Edit] Removed image because I don't like leaving any data public. Determined it was a problem beyond this forum.

Re: AdWords Cost Discrepancy.

Top Contributor
# 9
Top Contributor
Hi Chris,

This thread is still open, feel free to post back.

Okay, so if we are not on the same page, we can dig in further. Could you
please respond to the question i posed above? It will help us be on the
same page.

Also, could you share a screenshot which will help us know the scenario
better?

I could not spot any noticeable discrepancies in two accounts I checked.
But I am willing ti go further aligning this scenario with other accounts.
Your inputs will be helpful.

Thanks
Ratan

About Me: Community Profile | Ratan Jha INC. | Splashsys Webtech
If this or any other post solved your question, do not hesitate to accept it as the solution.

Re: AdWords Cost Discrepancy.

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# 10
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Sure thing, I provided a screenshot with the numbers that I was using my calculations, and answered your questions in the post that you just responded to. Let me know if you can see them.