Which metrics are most important in Google Ads?

google ads google ads for beginners metrics Jun 07, 2024
a laptop screen showing charts and graphs

By: Jyll Saskin Gales, Google Ads Coach

If you've ever felt lost staring at the sea of data in your Google Ads dashboard, you're not alone! Many marketers, especially those new to the platform, feel intimidated by the sheer volume of information. But don't worry, you don't need to be a data scientist to make sense of it all. Let's break it down into manageable chunks.

 

Reach vs. Efficiency Metrics: The Dynamic Duo

To simplify things, I like to categorize Google Ads metrics into two main types: reach metrics and efficiency metrics.

  • Reach Metrics: These tell you how much of something you got. Think impressions, clicks, cost, conversions, and revenue.
  • Efficiency Metrics: These show the rate at which something happened. An efficiency metric is calculated by putting two reach metrics together. Click-through rate (CTR), conversion rate (CVR), cost per click (CPC), and return on ad spend (ROAS) fall into this category.
 

Looking at reach or efficiency metrics in isolation won't give you the full picture. For example, a high conversion rate might seem fantastic, but if it's based on only a few clicks, it's not statistically significant. Conversely, a high number of clicks is meaningless if none of them convert into customers.

 

Getting Started: Impressions, Click-Through Rate, and Impression Share

When you're new to Google Ads, start with these three metrics:

  • Impressions: How many times your ads were shown.
  • Click-Through Rate (CTR): The percentage of impressions that resulted in clicks.
  • Impression Share: The percentage of eligible impressions your ads received.

These metrics provide a good starting point to understand how your ads are performing in terms of visibility and attracting clicks.

 

Ongoing Analysis: Conversion-Focused Metrics

As you become more comfortable with Google Ads, you can shift your focus to conversion-focused metrics:

  • Conversion Rate (CVR): The percentage of clicks that resulted in conversions.
  • Conversions/Conversion Value: The number or value of conversions your ads generated.
  • ROAS/CPA: Your return on ad spend or cost per acquisition.

These metrics help you assess the effectiveness of your campaigns in driving desired actions and generating revenue.

 

Keep Context and Goals in Mind

Remember, there are no inherently good or bad metrics. What matters is how your campaigns are performing relative to your goals. By setting clear objectives and tracking the right metrics, you can make data-driven decisions and optimize your Google Ads campaigns for success.

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