New to using Google Ads to track and monitor the success of your ad? It can be confusing as you are hit with numbers and metrics. Even when you have experience deciphering the analytics that is Google Ad Metrics, it can take some time.
We want to make your life easy.
In this article, we will explain all that you need to know about Google Ads metrics and 9 of the most important KPIs. You will be able to understand the data on your screen and know how to use it to your advantage.
Without having to call a professional for help.
Google Ads Metrics Explained?
To put it simply, Google Ads metrics are the methods used to monitor and analyze the performance of your Google Ads.
They provide you with accurate results to know whether your ad campaign is performing well or if some changes need to be made. They are great indicators of your ad’s current performance and how it may perform in the future.
9 Most Important KPIs
Just starting out with Google Ads? Check out 9 of the most important KPIs when it comes to Google Ad Metrics.
Over time you can begin to use these KPIs to help optimize your Google Ad campaigns to improve your business and help you reach your goals.
1. Cost Per Acquisiton/ Cost Per Conversion (CPA)
Cost Per Acquisition is more catered towards an e-commerce business, however, it is important to be understood by everyone who is looking to utilize Google Ads for their business.
For example, you are looking to increase the Phone Calls to your business through your Google Ads campaign. You would be more focused on price per acquisition/conversion as there is no revenue being made from the ad itself.
Since the competition, the average cost per click, and the conversion rate on the landing page are paid search variables that will affect the outcomes, the cost of each conversion varies greatly from industry to industry.
You can utilize the data generated from the converted leads that become physical customers and how many you would gain from a general job. This can then be used to determine your CPA.
2. Number Of Conversions
Return on Ad Spend and Cost per Conversion are two unquestionably crucial Ad performance indicators to consider, but they do not provide the complete picture.
The total number of conversions should be considered because ROAS only provides information on the cost-to-revenue ratio.
However, a conversion has many different forms. A conversion should provide value for your business. Whether it is presented as a sale or as someone signing up to your blog. You will need to track this metric.
We recommend creating a Google Analytics account and aligning your Google Ads account and website with your Google Analytics. This will allow you to easily track the number of conversions your website is generating on a regular basis.
3. Number Of Clicks
To comprehend the volume in a specific time frame, it’s also crucial to consider the number of clicks (ad clicks). Since clicks are the foundation of Google Ads, it is crucial to consider how many clicks were purchased over the time period.
The number of clicks that your ad receives can provide essential information on the performance of the ad itself, the service or product you are offering, and your business in general.
If your business is trustworthy and has a positive brand image then you may find you will gain a larger amount of clicks.
It is also crucial to understand your Cost-Per-Click (CPC) to determine if you are making a worthwhile investment.
4. Return On Ad Spend (ROAS)
When determining the success of an ad, the return on ad spend is one of the most important KPIs to be monitored. This allows you to gain an insight into the performance of your PPC.
Return on Ad Spend is the correlation between the costs invested into the Google Ad campaign and the revenue it has generated.
If an ad campaign is costing more than it is making in profits then you may benefit from de-activating the ad altogether, or making some significant changes.
If your ads are performing well and just need a little push to make them even better, then you may want to consider investing more funds into the campaign.
5. Conversion Rates
The ratio of clicks to conversions is known as the conversion rate. One of the most crucial KPIs for your company, it’s critical to keep an eye on this one. A poor conversion rate might be difficult when you spend per click.
If your conversion rate is rather low (0.1-0.5%) then you may find it challenging to gain a decent Return on Ad Spend as the costs for each sale will be too expensive.
In Google Analytics, you ought to contrast the conversion rate from Google Ads with that from other channels.
The conversion rate should be reasonable because the traffic from Google Ads should consist of prospective clients who are prepared to make a purchase.
6. Click Through Rate (CTR)
The ClickThrough Rate of your ad is the number of clicks that are converted into the viewing of your website. This is an important KPI to monitor as it indicates the way in which your audience responds to the ad itself.
7. Total Conversion Value
Although the number of conversions remains unchanged, it is important to monitor the overall conversion value because it might quickly rise and fall.
It is important for all e-commerce businesses to use their average order value to better understand the total conversion value.
Over time this can grow without the number of individual sales increasing indicating that the ad may not be performing as expected.
The total conversion value will aid in your monthly expenditure projections. This can help reduce the costs of different marketing strategies and allow you to have a high-performing Google Ad campaign.
8. Quality Rate
It’s unfortunate that some advertisers might overlook this metric a little bit. Working with your Quality Score allows you to considerably cut costs, which is necessary for running a profitable firm.
There are 3 main elements to be monitored when analyzing the performance of your Quality Rate:
- Landing page experience
- Relevancy of each ad
- Projected CTR
These 3 elements can help identify where you may need to improve in order to gain a higher quality score.
9. Number Of Impressions
You can see which campaigns are receiving the greatest exposure on search results pages and for display advertising by taking a look at the number of impressions.
Advertising on the display network will frequently result in a large number of impressions, which is particularly intriguing if the objective of your campaign is to raise brand awareness.
Whether you are new to Google Ads or have been running ads for some time, understanding how to monitor and analyze them is crucial for the success of your campaigns.
It can confusing and frustrating when trying to learn what each metric may mean and how it can help your business boost its performance.
Check out the 9 most important KPIs when it comes to Google Ads Metrics and make the most out of your ad campaigns.