Top 7 Google Ads Metrics You Must Track for Performance
Table of Contents
- Understanding Google Ad Metrics
Understanding Google Ad Metrics
Since you are paying for Google Ads, it is highly likely that you are result-driven. Your spending on the advertisement should justify the number of leads and sales generated.
To ensure that your ads are performing well and you are not spending unnecessarily, keep track of these metrics in Google Ads.
1. Quality Score
It shows the quality of your keywords, ad relevance, landing page, and CTR, on a scale of 1 to 10. If your quality score is not good, then it will be better to first check the keywords, improve the landing page experience, and ad copy.
Quality score is a critical factor in Google Ads because it affects your budget and ad performance. If the quality score is good, then the ad will rank higher with an optimized bidding cost.
Every time your ad campaign is shown to the users, it is counted as an impression.
So, if the total number of impressions is 4,000, then it means that your ad was shown to people 4,000 times. It doesn’t mean that 4,000 different users saw it. In many cases, the ad is seen by the same user multiple times.
If you are seeing any impressions on your ad, this means that your ad isn’t showing up on Google. Keep track of impressions regularly to learn the ups and downs of the ad. When
your budget is low, the impressions will also be low. The number of impressions also depends on the quality score and bidding strategy.
3. Click-through Rate (CTR)
CTR tells you how many times the ad was seen and how many people clicked it. It is crucial to analyze this metric because if people are seeing the ad but not clicking it, the CTR will be low.
This will help you understand that something is wrong with the ad, whether it is the ad copy content or some other factor. You can then make changes and improve the CTR.
4. Cost Per Click (CPC)
The amount you are paying for every click on the ad is called cost per click. It is calculated using the following formula:
CPC= Total amount spent / Number of ad clicks
5. Conversion Rate
How many people clicked the ad and how many of them took your desired action? The conversion rate helps you understand this. This ad metric helps you understand the performance of ad copy, keywords, and landing pages.
6. Cost Per Conversion (CPC)
The amount spent on ad per conversion is called cost per conversion. The meaning of conversion can be the purchase of a product, submission of the form, or newsletter signup.
This is an important metric to measure, because it will help you understand whether you are spending the justified amount for every conversion. If the CPC is high, you can then analyze things and put the effort into improving them.
7. Return on Advertising Spend (ROAS)
ROAS is very much like ROI. It is a key metric that matters the most. How much are you earning from the ads?
It can be calculated easily with this formula:
ROAS= Amount earned from ads / Amount spent on ads
For example, if you are spending INR 500 on ads and sell products worth INR 3000, then your ROAS will be 6.