Google Ads: 11 Key Metrics to Track for Success

When starting out on any digital advertising platform, people often get intimidated by the amount of metrics thrown at them. Between all the different tabs and numbers on Google Ads, it is easy to get discouraged from learning the ins and outs of your account. 

This article exists to break down some of the key metrics measuring your account's performance while walking you through how to use them to make your campaigns better. With this knowledge, you can use Google Ads to maximize your site's visibility, outshine your competition, increase clicks, and grow sales, your audience, and your return on investment.

Let's jump in!

1. Clicks

Simply put, clicks measure the number of times users click on your ads. Higher click numbers indicate that your ads are driving traffic to your website, which is crucial for visibility and engagement. 

Having a high number of clicks indicates that people are intrigued by what your ad has to say, and has a direct effect on your Cost Per Click (more on that one later). But remember, a high number of clicks doesn't guarantee you'll get a high Conversion volume (more on that later).

Understanding the importance of clicks leads us to another vital metric: Clickthrough Rate (CTR), which provides deeper insights into your ad's performance.

2. Clickthrough Rate (CTR)

Clickthrough Rate offers more insight into your click amount by measuring the ratio of users who click on your ad to the number of total users who viewed the ad (Impressions). A higher CTR means your ads are relevant and appealing to your target audience, indicating effective ad copy and keyword targeting. While a higher CTR may say good things about your ad, it doesn't guarantee a high amount of Conversions (which we'll discuss shortly).

A high CTR has a direct impact on your Cost Per Click.

3. Cost Per Click (CPC)

This metric is the average amount you pay for each click on your ad. CPC is calculated by the amount you've paid for your ad, divided by the total amount of clicks you received. For example, if your ad receives 2 clicks, one costing $0.20 and one costing $0.40, your average CPC for those clicks is $0.30. Understanding CPC helps manage your budget by ensuring you aren't overspending for each visitor your ad brings in.

Generally speaking, you should aim for a lower CPC. A low CPC means you're getting many clicks for the money you're spending. You could accomplish this by doing the following:

• Save your budget by adding words you don't want to target to your Negative Keywords list
• Increase CTR by utilizing ad extensions, which showcase more of what your business has to offer
• Adjust your keyword bids, by performance, using manual keyword bidding
• Ad high-quality search terms to your keyword lists on an ongoing basis
• Use long-tail keywords, which tend to be less competitive, hence less expensive
• Increase your ads' Quality Score
• A/B split test your ads, optimizing for features that perform best
• Target locations that are within proximity to your business

Remember, once you've implemented these methods you can't just stop there. You must continually optimize your ads to keep your CPC down. If your ads stay stagnant, your click volume will reduce and CPC will eventually go up. This is one of many reasons why companies hire digital marketing specialists to manage their ads for them.

4. Impressions

Impressions measure how often your ad is seen by people in search results and websites. A higher Impression count means your ads are reaching a larger audience, which helps you increase your brand awareness. 

Running campaigns with high Impressions as the goal is good for businesses looking to increase brand recognition, or to figure out which platforms give your ads the most visibility. If your ads are getting a lot of impressions, but low CTR, this indicates that you need to write more compelling ads.

5. Search Impression Share

This metric is calculated by Impressions you’ve received divided by the estimated number of Impressions you were eligible to receive. This metric sheds light on how often your ads appear relative to your competition. 

For example, if your Search Impression Share is 40%, then your ad is losing 60% of its visibility to similar businesses. There are several ways to increase your Impression Share over your competitors:

• Optimize your ad copy for best-performing keywords
• Increase keyword bidding
• Increase your daily budget
• Target the best geographical locations

If gaining an edge over your competition is the key focus of your ad campaign, then pay special attention to this metric.

6. Search Lost Impression Share (rank)

Abbreviated Search Lost IS (rank), this metric measures how often your ad didn't appear due to Ad Rank, which determines your ad's position and whether it'll be shown at all. 

Your Ad Rank is calculated by budget and bidding strategy, the quality of your ad and website, your ad format, and the impact of any extensions you've decided to use. A lower Search Lost IS (rank) is desirable because it indicates fewer impressions lost due to Ad Rank.

7. Search Lost Impression Share (budget)

Search Lost IS (budget) measures the amount of impressions your ad is missing out on due to an insufficient budget. Identifying how budget constraints limit your campaign's reach lets you know how much to increase your budget by. 

There are ways to achieve big results with smaller budgets, but Search Lost IS (budget) will help you know what to increase your budget by, whenever you're ready.

8. Conversions

Often deemed the most important metric to track and target ads towards, Conversions measure the actions users take on your site after clicking your ad. This includes making a purchase, signing up for a newsletter, or even making a phone call. 

Conversions are a direct indicator of your campaign's effectiveness in driving desired actions from your audience. When set up right, they can give you a valid estimation of your campaign's ROI.

9. Cost/Conversion

Cost Per Conversion is the amount you spend for each Conversion. Similarly to CPC, this metric is calculated by dividing the amount you're paying by your total Conversion amount. Understanding this cost is key to optimizing your ad spend and improving your ROI. Like CPC, it is desirable to aim for a lower Cost/Conversion. Here are some ways to accomplish that:

• Improve your landing page quality by optimizing its design for Conversions
• Target and bid on high-converting keywords
• Pause low-converting keywords
• Optimize your ad copy for the best-performing keywords
• Use ad extensions to showcase more of what your brand has to offer
• Use Remarketing lists to target your ads to those previously exposed to them
• Run A/B split tests on various forms of your ad copy, optimizing the elements that garner the most Conversions

By regularly improving on all your Google Ads campaigns on an ongoing basis, you will increase your Conversions while lowering the cost for each, optimizing your ROI.

10. Conversion Rate

Conversion Rate is similar to Clickthrough Rate (CTR), except it measures the percentage of users who take a desired action after clicking your ad. A higher Conversion Rate shows that your ads effectively convert clicks into meaningful actions, indicating successful targeting and user experience.

Recall earlier that I mentioned how a high CTR to your ads doesn't guarantee a high Conversion Rate. For example, if you had a high CTR but a low Conversion Rate, that indicates that there is something about your landing page that is causing people not to convert. Understanding these different metrics and how they relate to one another is key to understanding which element of your campaigns needs improvement.

11. Cost

Simply put, Cost is the total amount spent on your Google Ads campaign. Keeping track of overall spending ensures you stay within budget while achieving your campaign goals. Google Ads doesn't always abide by budget parameters and will go over budget if it thinks it can garner more clicks or Conversations. 

This is especially true if using an automated bidding strategy. However, by setting daily spending limits, monitoring your keyword bids, adding to your Negatives list, and limiting spending to best-performing keywords, you can make sure you don't exceed your monthly budget.

By employing the optimization tactics discussed in this article, your campaigns will utilize its budget to their fullest ability and generate a better return on investment.

Conclusion

By diligently monitoring these metrics, you can make informed adjustments to your Google Ads campaigns. Monitoring these metrics daily and employing optimization tactics will help ensure that your campaigns align with your goals of maximizing visibility, increasing engagement, and growing your business.

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