Is the Shift from 'Conversions' to 'Key Events' in GA4 a Game-Changer?

The recent evolution from "conversions" to "key events" within GA4 marks a significant milestone that demands attention from digital marketers, particularly SEO experts. This article delves into the profound implications of this transformation and offers valuable insights on leveraging it to enhance your marketing strategies.

Understanding the Concept of Key Events in GA4

On a regular morning, I received an email from a former student who shared his discovery upon logging into Google Analytics 4 (GA4) – "Analytics conversions have been renamed key events." This prompted a closer examination, revealing Google's explanation:

"To differentiate conversions in Google Analytics from those in Google Ads, Analytics conversions are now termed key events. No action is required on your existing setup. Key events are managed and reported similarly to previous conversions in Google Analytics."

Upon further exploration, it became evident that key events in GA4 are designed to measure the most vital interactions crucial to your business. For instance, marking significant events like purchases or newsletter subscriptions as key events enables their representation as key event metrics in Analytics reports.

As my former student sought guidance on the impact of this change on metrics and reporting, it triggered a reflection on the subtle, yet profound shifts introduced by Google engineers from Universal Analytics (UA) to GA4:

• UA relied on session-based data, while GA4 operates on event-based data.
• UA measured bounce rates, whereas GA4 focuses on engagement rates.
• UA utilized cookies, whereas GA4 employs modeling to estimate key events.
• UA allowed up to 20 goals, while GA4 permits the marking of up to 30 key events.
• UA provided raw data, but GA4 introduces automatic anomaly detection.
• UA reported user actions, but GA4 generates predictive insights.
• UA favored last-click attribution, whereas GA4 adopts data-driven attribution.

This paradigm shift underscores the transformative potential of transitioning from conversions to key events in GA4. While SEO specialists traditionally rely on organic search traffic to gauge performance, this evolution extends its relevance to other marketing professionals leveraging referral, organic social, or default channels to measure their impact on business success.

The Implications for SEO Professionals

Let's explore the impact of measuring key events on the career trajectory of SEO professionals. Many SEOs rely on Search Console to gauge organic search traffic, a vital metric in their field.

Organic search constitutes a significant portion, 53%, of all website traffic, according to a BrightEdge study. Surprisingly, this statistic often doesn't receive the recognition it deserves from C-suite executives. While organic search drives substantial traffic, executives prioritize broader business objectives like boosting brand awareness, generating leads, or driving online sales.

In response to this industry need, Google introduced the Business Objectives collection to GA4 in June 2023. The recent shift from conversions to key events presents a valuable opportunity for SEOs to align their metrics with the overarching goals of the organization.

Objectives Business Alignment

Before this recent shift, measuring "micro conversions" was commonplace. However, the term often conveyed a sense of insignificance, failing to capture the attention of executives who prioritize "macro conversions" – those pivotal interactions that directly drive business success.

Enter "key events." Unlike "micro conversions," the term exudes value and significance. Consider this analogy: Would you rather present your executives with "sushi" or "cold, dead, raw fish" at their next meeting? Words hold weight.

For instance, if your Chief Marketing Officer aims to enhance brand awareness in your B2C company, focusing on key events like users scrolling through 90% of a blog post, engaging with product videos, or completing tutorials can be impactful.

Similarly, if your Chief Revenue Officer prioritizes lead generation in your B2B firm, highlighting key events such as white paper downloads, newsletter subscriptions, or registration form completions is crucial.

And for your Chief Executive Officer driving online sales in your ecommerce venture, emphasizing key events like initiating the checkout process, adding items to the shopping cart, or completing purchases becomes imperative.

Moreover, assigning a default monetary value to key events in GA4 enhances their significance. For instance, if 10% of newsletter subscribers become customers with an average transaction of $500, associating a $50 value to this key event amplifies its importance.

In the Google Analytics demo account, envision presenting executives with the choice between "27,657 users," "42,596 key events," or "$61,370 in revenue" over the last 90 days. Despite its appearance as "small change," each key event contributes significantly to the economic value of your company or clients.

Expanding the Scope of Key Events

SEO professionals aren't the sole adopters of key events and revenue as key performance indicators (KPIs).

Consider this: when you delve into the data of the Google Merchandise Store in GA4, you'll uncover the "referral" channel. This innovative approach to measuring digital PR resulted in 5,987 users, 12,260 key events, and $10,210 in revenue over the past 90 days.

Similarly, the "organic social" channel offers a fresh perspective on measuring social media marketing, yielding 1,920 users, 4,952 key events, and $5,797 in total revenue during the same timeframe.

Let's talk about direct traffic, often referred to as "dark traffic." In 2014, a Groupon "experiment" revealed that up to 60% of "direct" traffic was actually organic search traffic. Fast forward to 2023, and a significant portion of traffic labeled as "direct" in Google Analytics likely originated from "dark social" networks like TikTok, Slack, Discord, Mastodon, and WhatsApp, as per research by SparkToro.

Now, would discussing the sources of direct traffic be deemed a "career-damaging move"? Probably not. In fact, initiating such discussions, particularly before the next C-suite meeting, would likely be well received.

But let's get back to the data. According to the Google Analytics demo account:

• The "direct" channel delivered 75,788 users, 91,304 key events, and $189,918 in revenue over the last 90 days, making it nearly 2.5 times more valuable than the organic search, referral, and organic social channels combined.
• However, it's worth noting that only a small fraction of these users landed on the home page of the Google Merchandise Store. Instead, the majority navigated to various landing pages, spanning categories such as stationery, new products, sale items, apparel, and lifestyle merchandise.

So, how did users discover these landing pages? It likely followed a two-step process:

1. A select group of opinion leaders stumbled upon specific product pages through organic search, news articles, or social media posts.
2. These influencers then shared links to these pages, along with their opinions, across various channels, reaching a wider audience of friends, family, and colleagues.

And there you have it—a tried and tested model of communication, demonstrating how direct traffic finds its way to diverse landing pages on the Google Merchandise Store website.

Test and Prepare for Imminent Changes in Search Marketing

Even if you haven't yet tested or verified it, initiating a dialogue with an executive about the likely origins of direct traffic is a wise move. Suggest conducting tests using Google's campaign URL builder tool, facilitating the addition of campaign parameters to URLs for measuring custom campaigns in GA4.

Having this discussion and executing these tests promptly is crucial. Why? Because a significant change is looming in 2024, and those adept at measuring both the quality and quantity of organic search, referral, and organic social traffic will be better positioned to not just endure but prosper.

In an article titled "Google SGE a top threat to brand and product terms, study finds," Danny Goodwin noted, "You should expect to see 'some erosion of current traffic levels' from brand-related terms as a result of Google’s Search Generative Experience, according to a new Authorities analysis."

How substantial is this erosion? Well, Authorities discovered that Google SGE was displayed for 91.4% of all search queries. Another study by BrightEdge found that 84% of search queries will incorporate Generative AI once SGE is fully integrated by Google.

So, envision yourself on the edge of the San Andreas Fault. Taking prudent measures to brace for the impending "searchquake" is imperative. You'd undoubtedly want to do more than just secure your pictures with two nails instead of one.

The sooner you commence measuring key events, the better. As Sun-Tzu wisely noted, "In the midst of chaos, there is also opportunity."

source: Why the shift from ‘conversions’ to ‘key events’ in GA4 is a game-changer (searchengineland.com)