Google Ads Analysis: 4 Crucial Metrics To Focus On

Google Ads offers one of the most effective ways of advertising online today. The ads help businesses run PPC campaigns to draw customers to their websites, thus increasing Return on investment (ROI). 

However, optimizing your campaigns for success may be costly and overwhelming, with all the large amounts of data Google ads generate. 

That’s why you need to keep track of all the crucial metrics so you can get essential data and optimize your campaigns without putting a dent in your pocket.

How to Make Sense of the Data?

Data is the digital age’s currency. However, it may not help much in its raw form. In other words, it has to be broken down into actionable insight through reporting. 

Traditionally marketers depended on excel sheets and PowerPoint for PPC reporting, and some still do. But if you are keen on staying competitive, you need to introduce more advanced tools in your reporting that guarantee speed and accuracy.

 If you don’t have an idea on where to start, this resource on how to scale your Google AdWords report with Tapcliks is a good place to start. 

Metrics You Should Track

  1. Return on Ad Spends (ROAS)

Advertising costs money, and every marketing campaign must bring in results that justify the spending considering the cost of running a PPC campaign can be pretty high. 

This puts ROAS at the top of the metrics you need to track. It is the first indicator of the performance of your ads. Simply put, it is the measure of revenue spent vs. revenue generated.

ROAS is the simplest metric to understand, with some company executives only depending on it to gauge a campaign’s ROI. 

A poor ROAS indicates a problem with a campaign that can be identified by tracking other metrics. 

2. Cost Per Click (CPC)

A specific amount of money is deducted from your Google ads account for every click on your Google ads. Unfortunately, not every click translates into revenue. 

You may need to refine your keywords to ensure that the people that click on them are most likely to take the desired action (convert). 

However, it is also important to understand that the more refined your keywords are, the higher the CPC. 

As a PPC manager, you have to balance the competitiveness of the words you choose to rank for and the amount of money you plan to spend per click. 

3. Click through Ratio (CTR)

CTR focuses on the number of clicks compared to the number of people the ad was displayed (impressions). 

For example, if the impressions were 100 and 15 people clicked on the ad, the CTR would be 15%. This metric indicates how appealing your ad is to your target audience and can be used to tailor it to achieve the desired outcome. 

However, high CTR isn’t always good news if the clicks don’t convert into conversions considering every click means cost. 

To maintain a healthy CTR, you may want to consider refining your ad language to weed out an unqualified audience while still ensuring that it doesn’t go too low, which can hurt your quality score.

4. Cost of Conversion (CPCon)

CPCon is a metric that focuses on conversion or clicks that result in the desired action. A conversion can mean different things for individual campaigns. 

If a campaign intended to have your audience sign up to your email list, the conversion cost would be the amount of money spent on a person to get them to sign up.

This means if you spend $100 on a campaign that results in 20 people signing up to your email list, your cost of conversion will be $20. A low CPCon is an indicator that your ad is doing well.

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