There are many metrics to look at to determine the success of your Google Ads campaign. Here are the top 10 that we at ADHOME specifically like to talk about on a monthly basis.
Top 10 Metrics to Review
- CTR (Click Through Rate)
- CPC (Cost per Click)
- CPL (Cost per Lead)
- Conversion Rate
- Impression Share Loss Due to Budget
- Impressions Share Loss Due to Rank
- Click Share
Explanation of each metric
An impression is counted each time your ad is shown on a search result page or another site on the Google Network. Each time your ad appears on Google or the Google Network, it’s counted as one impression. In some cases, only a section of your ad may be shown.
When someone clicks your ad, like on the blue headline of a text ad, Google Ads counts that as a click. A click is counted even if the person doesn’t reach your website, maybe because it’s temporarily unavailable.
CTR (Click Through Rate)
A ratio showing how often people who see your ad end up clicking it. Clickthrough rate (CTR) can be used to gauge how well your keywords and ads are performing. CTR is the number of clicks that your ad receives divided by the number of times your ad is shown: clicks ÷ impressions = CTR.
An action that’s counted when someone interacts with your ad (for example, clicks a text ad or views a video ad) and then takes an action that you’ve defined as valuable to your business, such as an online purchase or a call to your business from a mobile phone.
CPC (Cost Per Click)
Cost-per-click (CPC) bidding means that you pay for each click on your ads. For CPC bidding campaigns, you set a maximum cost-per-click bid – or simply “max. CPC” – that’s the highest amount that you’re willing to pay for a click on your ad (unless you’re setting bid adjustments, or using Enhanced CPC). Cost Per Click is the cost you paid to receive that specific click. Your Google Ad Campaign will show you an average Cost Per Click which is what you want to look at.
CPL (Cost Per Lead)
Every time a searcher clicks on your ad, a portion of your marketing dollars is spent. … You can calculate Cost Per Lead with this formula CPC / CR = CPL. So for example, if your cost is $0.50 per click and you have a conversion rate of 10% (50 / . 1 = $5.00) your CPL is $5.00.
Your conversion rate is the percentage of visitors to your website that complete a desired goal (a conversion) out of the total number of visitors. A high conversion rate is indicative of successful marketing and web design: It means people want what you’re offering, and they’re easily able to get it!
Impression Share Loss Due to Budget
Lost impression share (on the search network) due to inadequate budget. Referred to as = Search Lost IS (Budget) This metric tells us how many (Search) impressions are being lost (as a percentage) of the total available impressions due to budget.
Impression Share Loss Due to Rank
The percentage of time your ads weren’t shown due to poor Ad Rank. Impression share (IS) is the number of impressions you’ve received divided by the estimated number of impressions you were eligible to receive. … Search lost IS (budget): This is the percentage of time your ad didn’t appear because your budget is too low.
Click share is the estimated share of all achievable clicks that you have received, and is available only for Search and Shopping campaigns. You can use the click share metric to understand where you have the potential to capture even more clicks.