Essential Google Ads KPIs to Elevate Your PPC Campaign

Tracking your ad’s performance when running a Google Ads pay-per-click (PPC) campaign is crucial to achieving success. Even with this goal in mind, it can be difficult to decide what metrics are most important to monitor over the course of your PPC campaign. Thankfully, it doesn’t have to be difficult. By focusing on a few high-impact key performance indicators (KPIs), you can achieve a targeted look at your ad campaign and determine how to achieve the best possible results.

After all this, you must be wondering: what KPIs are most important? Thankfully, the Google Ads campaign optimization experts at Americaneagle.com have the answer. Let’s take a look at how to boost your PPC campaign with KPIs.

Person working on a laptop with KPI and various performance metric icons, indicating the monitoring of PPC campaign effectiveness.

What Are the Most Important KPIs?

When it comes to Google Ads campaign optimization, some of the most important KPIs to track include conversion rate, return on ad spend, and click-through rate.

Conversion Rate

Ad campaigns serve many purposes: generating brand awareness, creating a loyal customer base and, perhaps most importantly, getting conversions. Conversions are actions users take when visiting your site — this can be anything from purchasing a product to signing up for an email newsletter or downloading a resource. The conversion rate is the percentage of conversions per interaction with your ad, so a higher conversion rate is better. If you have clear goals in mind and create strong calls to action, your ad is more likely to lead to more conversions, and therefore a higher conversion rate.

Return on Ad Spend (ROAS)

If the goal of your marketing campaign is to generate revenue, then return on ad spend (ROAS) is the perfect metric to track your progress on that goal. ROAS is measured by calculating how much revenue you have earned for each dollar spent on advertising. Put simply, this metric calculates whether your ads are making or losing money. If the goal of your ad campaign is to generate brand awareness or just get more site visitors, this metric may not be for you. However, ROAS can be perfect for determining if your ads are leading to sales.

Click-Through Rate (CTR)

Perhaps one of the most simple and effective KPIs to track is the click-through rate. The CTR of your ad is shown as a percentage, determined by how often users click on your ad when it is shown to them. A more compelling ad campaign will result in a higher click-through rate, and a high CTR can lead to progress on other goals for your ad campaign. Wondering how to improve your CTR? Your first priority should be to create compelling ad copy. Try A/B testing different calls to action or different copy to convince users to click on your ad more frequently. Additionally, make sure your ad is showing up for the right keywords. If your ad is appearing in searches that aren’t as closely aligned with your brand, it’s less likely to get clicks.

What Are the Best Paid Search KPIs?

In paid search conversion tracking, quality score and cost per click are among the better KPIs to track.

Quality Score

In Google Ads, the quality score represents how relevant your ad is to the audience and keyword your campaign is targeting. Your ad is ranked on a scale of 1 to 10, with a higher score indicating a more relevant ad. Quality score is determined by a number of factors, including click-through rate, landing page quality, and ad relevance. This metric also has a large impact on the costs of your ad campaign – a higher quality score will lower your bid amount for an ad campaign, while a lower quality score will raise the costs. This is why it’s important to choose the keywords you want to rank for carefully and tailor your ad content to meet your target audience’s unique needs.

Cost Per Click (CPC)

In a PPC campaign, the cost per click (CPC) is how much you pay each time a user clicks on your ad. This is the payment model used by Google Ads, so it’s a key indicator of how much you’re spending on your campaign. Additionally, CPC is calculated alongside your quality score to determine your ad rank, so it’s important to leverage your CPC meaningfully depending on the quality score of each keyword you want to rank for. You should also focus on increasing your quality score to lower your cost per click, and ultimately, lower the overall cost of your ad campaign.

What Google Search KPIs Are Worth Tracking?

To follow Google Ads best practices, the KPIs worth tracking include impression share and cost per conversion.

Impression Share

You may understand the importance of tracking the total impressions of your ad campaign, but did you know you should also be tracking your impression share? The impression share metric is calculated by comparing the number of impressions your ad has received to the estimated number of impressions your ad could theoretically achieve. The estimated impression count is determined using various factors like ad quality and targeting settings. In essence, your impression share determines how many impressions you could receive by increasing your ad rank through higher bids, budget increases, or a better quality score.

Cost Per Conversion

The cost per conversion, or cost per acquisition, is a metric that determines how much you are spending on each customer that takes an action on your site that leads to a conversion. Just like your conversion rate, these actions can include making a purchase, downloading a file, or signing up for a newsletter. To determine your cost per acquisition, divide your total ad costs by the total number of conversions. Cost per conversion is crucial for determining the success of your ad campaign, as well as how much you are really spending to reach the goals of your campaign.

What Are the Best Google Ads Report Metrics?

Effective PPC advertising strategies report on a number of metrics, including average position and number of clicks.

Average Position

The average position of your ad reflects where your ad appears in the search results. For example, if your average position score is 2, that means your ad campaign is, on average, showing up near the second position in the search results. Appearing higher in the search results can lead to more clicks and a higher click-through rate, but it’s important to consider the scope of your campaign when determining whether your current average position rate is good or bad. A high position score (meaning a low position on the search page) can indicate a lower CPC, as long as the amount of impressions and conversions you’re getting meet the goals of your campaign. 

Number of Clicks

Ad clicks are perhaps the simplest Google Ads metric, but its simplicity does not make it any less important. Tracking your clicks is essential in the early stages of a campaign to ensure your ad is reaching the right audience. Even after the early stages, the number of clicks can be a great indicator of performance over time or show the impact of changes to your campaign. For example, if you run an A/B test between two versions of an ad, a big difference in the aggregate number of clicks is a great indicator that one ad is doing better than the other.

How Do I Use Advertising Metrics and KPIs to Improve My Ad Performance?

It’s essential to use a mix of metrics to determine the performance of your ad campaign, so be sure to choose a variety of KPIs that focus on the goals you want to achieve. If your focus is on getting sales, you may view cost per conversion and return on ad spend to be high priorities. If you just want to generate brand awareness, you may place more importance on your click-through rate and number of clicks. If you want to make improvements to a long-running campaign, you may focus on average position, impression share, and quality score. In short, you should choose to monitor a mix of KPIs in order to achieve your Google Ads campaign goals.

Partner with a Website Development and Digital Marketing Company

Optimizing your pay-per-click marketing tactics can be challenging. Tracking metrics, testing changes, and optimizing your content for optimal performance takes a lot of time and effort. Thankfully, the experts at Americaneagle.com are here to help! Through paid search services, such as audits, keyword research, competitor analysis, A/B testing, and more, our experts can help you achieve a higher pay-per-click marketing ROI.

Interested in teaming up with Americaneagle.com’s team of paid search professionals? Visit our paid search management overview page or contact us to learn more.


About Author

staff at americaneagle.com
Americaneagle.com has a dedicated team of strategists, technologists, and content writers to help you stay up to date with the latest and greatest trends in the technology industry. We cover a wide variety of topics on a regular basis, some of which include website design, website development, digital marketing services, ecommerce, accessibility, website hosting and security, and so much more. Educating our clients, prospects, and readers is very important to us and we appreciate the opportunity to be an authoritative voice in the industry.


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