Running successful Google Ads campaigns is all about understanding what’s working and what’s not. That’s where Google Ads metrics come in! By tracking the right ones, you can make informed decisions and optimize your campaigns to achieve your desired marketing objectives, whether it be leads, sales, or traffic.
With so many Google Ads metrics available, it can be overwhelming to know where to start. Don’t worry, I’ve got you covered! This blog post will deep dive into the top 5 most important Google Ads metrics you should be tracking for good performance. Also, the metrics we use daily when optimizing Google Ads accounts.
1. Search Absolute Top Impression Share
Imagine the top spot on the search result page. Search Absolute Top Impression Share measures the percentage of impressions your ad received in the top placements vs the total eligible top impressions it could have received. This metric is a crucial KPI for Search Google Ads, especially if you’re aiming to get a higher visibility than your competitors.
What is a good Search Absolute Top IS?
My recommendation is to always have a Search Abs. Top IS of at least 65%. Anything less than that could mean that your budget is not enough, your bids are too low if you’re using a manual bidding strategy, or that the automated bidding is limited.
If you’re running a Brand campaign in your account, try to have a Search Abs. Top IS of at least 95% to maximize their chances of being seen and clicked on by potential customers.
2. Google Ads CTR (Click-Through Rate)
Clicks are helpful clues, but Google Ads CTR tells the whole story of your ads’ performance. Just like seeing how many people saw your ad (impressions) is useful, clicks give you a bit more context. But the real magic happens with Click-Through Rate (CTR). This metric tells you what percentage of people who saw your ad actually clicked on it.
Changes in Google Ads CTR should be carefully monitored through time because they may indicate fluctuations in auction or budget limitations. If you’re click-through rate is decreasing, you may want to look into auction insights and see what have change there. Also, be aware of any changes you did during that time period.
What is a good CTR?
A good CTR depends on several things, like your industry, your company visibility, and the type of ad you’re running. For example, display ads typically have a lower CTR (less than 1%) compared to search ads (average CTR starting at ~4%; find more data for the US market here).
As I always say, a good CTR is an increasing one.
3. Cost per Click (Google Ads CPC)
We’ve talked about how many people see your ad (impressions) and how many click on it (CTR), but what about the cost? Cost per Click (CPC) tells you exactly that: the average amount you pay each time someone clicks on your ad. This metric is crucial for understanding how efficiently you’re spending your advertising budget.
Every account should aim for a lower average CPC, however, it’s a difficult equation to solve. Usually, when trying to decrease the CPC, you end up decreasing the Impression share too. That’s why keyword segmentation and constant optimization are crucial elements for balancing performance in your Google Ads account
What is a good CPC?
Google Ads provides tools and strategies to help you understand whether your CPC is in line with industry standards, like keyword research and ad group optimization. Remember, a lower CPC often translates to more clicks for your budget, maximizing your return on investment.
Other metrics that can help you understand your CPC are estimated bid columns that can be applied in the Search Keywords view. There are 3 estimated bid metrics: estimated first-page bid that shows you the amount you need to rank on the first page, estimated top-of-page bid that estimates the bid needed to get most of your impressions adjacent to the top organic search results, and estimated first position bid to show your ads at the top of the first page in Google Search results.
Read more on the new definition of Top Ads.
4. Cost per Acquisition (CPA)
Cost per acquisition or cost per conversion in Google Ads refers to the average amount you spend to acquire a new customer, essentially the cost of turning that click into a paying customer or a valuable lead.
By understanding your CPA, you can calculate your Return on Ad Spend (ROAS). This lets you see if your ad spend is actually generating a profit. Optimizing for a lower CPA is one of the most demanding tasks a marketer works on.
How to optimize for a lower CPA?
- Landing Page Optimization: Make sure your landing page is designed to convert clicks into sales or leads. A smooth user experience and a clear call to action are key.
- Targeted Audience: Refine your targeting options to reach people who are more likely to be interested in your product or service. This reduces wasted clicks and improves conversion rates, ultimately lowering your CPA.
- Conversion Tracking: Set up conversion tracking in Google Ads to accurately measure how many clicks convert into paying customers. This data is crucial for optimizing your campaigns for better performance.
Having trouble setting up conversions? Let us help!
- Remarketing Campaigns: Sometimes people need a little nudge. Remarketing campaigns can help you reconnect with website visitors who didn’t convert on the first click, potentially leading to a conversion later, all while keeping your CPA in check.
5. Conversion Rate (CVR)
Conversion rate is the golden metric in Google Ads, the ultimate measure of success. It transcends clicks and costs, revealing the true effectiveness of your campaigns. It tells you what percentage of people who click on your ad actually take the desired action, whether it’s a purchase, a sign-up, a download, or anything else that aligns with your campaign goals.
Why is Conversion Rate So Important?
Imagine a fishing expedition. You cast out your line (your ad) and attract some interest (clicks), but what truly matters is how many fish you actually catch (conversions). Conversion rate is your catch rate in the vast ocean of online traffic. A high conversion rate means your ad is effectively targeting the right kind of audience and motivating them to take action.
What’s a Good Conversion Rate?
Just like CPA, there’s no magic conversion rate number. It depends on your industry, campaign goals, and the specific action you’re asking users to take. Generally, a higher conversion rate is better, but even a seemingly low rate could be fantastic if your target audience is very niche. The key is to track your conversion rate over time and strive to improve it continuously.
Don’t be afraid to dive deep into the data! Every metric in Google Ads offers valuable insights, even if some seem less obvious than others (like the clear benefit of more conversions). The more metrics you track, the bigger picture you can build. This comprehensive view allows you to pinpoint areas for improvement and make informed decisions that set your campaigns up for success.