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What it does
Search Funnels shows the entire search path leading up to a conversion, including search ad clicks and impressions. These reports can provide you with data on how your "upper-funnel" keywords help conversions beyond just the last click.
Why you'd use it
The data you see in Search Funnels can help you understand how users search for your products before converting so that you can make the most of these conversion paths. Increase the efficiency of your AdWords accounts by discovering and prioritizing assisting keywords, ad groups, and campaigns, as well as those that convert.