Hi @hcerus - usually it's closer to what you describe in option 2, but most times a bit simpler.
Most recommendations are to fire the Conversion tag only on a Thank You page (completion of whatever action your site wants a customer to take). Networks like Google handle all the conversion counts using cookie matching. When your site visitor clicks a Google ad link to visit your site, Google sets a cookie on the visitor's browser. When the visitor "converts" and reaches your Thank You page, the Conversion tag fires and Google again captures the cookie set previously for that visitor. They are supposed to ignore other instances of the conversion tag. However, some of what you described in your 2nd option should restrict the Conversion tag from firing for visitors who hadn't ever clicked an ad link.
Hope this helps a bit - let us know how you ultimately decide to handle it, and I hope others will offer input here as well.
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