Do you know that successful advertising depends on matching your promotion with the intent of your target audience? While intent itself is unmeasurable, many platforms have allowed digital marketers to match their advertisements with the people who need and want it the most.
However, the platform that does this better is Google Ads. While other platforms like Facebook Ads are trying, Google still holds the holy grail to the search query. Google Ads is no doubt the most powerful ad platform when it comes to matching your promotion with user intent.
Understanding and measuring Google Ads metrics is critical to the success of any campaign. Whether you are running a small online business or an experienced digital marketer, understanding which Google Ads KPIs to track will help optimize your ad spending and increase your return on investment.
In this blog, we will discuss the top Google ads metrics digital marketers need to improve their campaign performance.
What Are Google Ads Metrics?
Google Ads is an advertising platform that operates on a pay-per-click model. They are ads that show at the top, bottom, or sometimes beside your Google search results.
Google Ads metrics are the indicators that provide the effectiveness of your ads, campaigns, and keywords. They show insight into your ad performance and if your campaigns are working out. Google Ad metrics monitor various elements of your advertising campaign. These include the number of times your ad is shown, the number of times your ad is clicked, and user actions like sales or sign-ups. These metrics give insight into your Google ad’s reach and interaction.
Google Ads metrics are the indicators that provide the effectiveness of your ads, campaigns, and keywords. They show insight into your ad performance and if your campaigns are working out. Google Ad metrics monitor various elements of your advertising campaign. These include the number of times your ad is shown, the number of times your ad is clicked, and user actions like sales or sign-ups. These metrics give insight into your Google ad’s reach and interaction.
How Google Decide When and Where Ads Shows
After submitting a query to Google, it scans through its massive database of ads. Google decides which ad should be shown on the page by first using keywords, semantics, and ad quality. Then Google identifies every available ad that fits to be shown based on the query. After that, an auction takes place and the highest bidder wins the top slot.
Monitoring Google Ads
Setting up your ads and leaving them is not a smart move for a digital marketer unless you choose to waste your money. Google ads must be regularly monitored, evaluated, and optimized for desired results.
While some digital marketers recommend not touching them to give you adequate data. Others recommend slightly changing your bid, keywords, and ad copy or setting up rules and automation. No matter the techniques you choose to use, ads must be monitored to optimize your decisions.
Importance of Tracking Google Ads Metrics
Performance Evaluation
Google Ads performance metrics provide insights into your ad performance, campaigns, and keywords. Tracking metrics such as impressions, clicks, CTR, and conversion rate helps digital marketers evaluate the effectiveness of their advertising. It also helps them know if their ads reach their target audience.
Optimization Opportunities
Key metrics for Google Ads reveal the parts of your campaigns that are working well and the ones you need to pay attention to. For example: having a click-through rate shows your ad is not performing well. This indicates you need to adjust your ad targeting to increase engagement.
Budget Management
Business budget is an important reason for monitoring Google Ads metrics. Tracking metrics like cost, cost per acquisition or action, and return on ad spend allows you to manage your advertising budget effectively. It also helps you evaluate your campaigns and allocate your budget to the most profitable strategies.
Benchmarking and Competition Analysis
Benchmarking and competitive analysis help businesses understand their market position and identify areas for improvement. Google Ads daily metrics allow you to compare your campaign performance with industry standards and analyze why your competitors are ahead of you.
The Google Ads Metrics to Monitor
Click-Through-Rate (CTR)
Click-through rate in Google Ads measures how frequently people who view your ad click on it. It also measures the strength and relevance of your ad campaign. The click-through rate of your campaign is calculated by dividing the number of clicks by your ad's overall impression rate.
A higher CTR indicates your ads are relevant and targeted to the right audience but does not equal a high conversion rate. Digital marketers only pay for clicks when it comes to Google Ads. So using the right keyword gives you the best result. Let's discuss a scenario
A company runs a campaign to increase the sales of "black bags" on their website with direct ads. They target “black shoes with white stripes” keywords and have a page optimized for it. The second company also runs a campaign to introduce a new product to their customers. They target “Lip Oil” keywords, but are selling "Lip Gloss"
Company A is likely going to get a higher conversion rate with a high click-through rate compared to Company B. However, if an ad’s CTR gets too low, it can affect its quality score, so make sure your ads are still relevant to the targeted keywords.
Conversion Rate
The conversion rate is the value at which users are taking action after clicking your Google Ads. Calculating your ad conversion rate involves dividing the total number of conversions by the total number of ad clicks and multiplying by 100.
Conversion rate shows the number of website visitors who took action after viewing your ad depending on your company goals. These actions can include making a purchase, completing a form, subscribing to a newsletter, or downloading a document.
The conversion rate shows how well your campaigns perform according to conversions. It also gives digital marketers insight into the following:
- Best-performing ad copy
- Using the right keywords
- Landing pages optimized
- Targeting the right people
Targeting the wrong keyword can lower your conversion rate. So, make sure you’re using negative keywords to keep irrelevant clicks from getting through.
Return on Advertising Spend (ROAS)
Return on Advertising Spend is a marketing metric responsible for measuring how effective your ads campaign is. ROAS is a key performance indicator used by digital marketers for measuring the revenue earned on advertising compared to the amount spent on advertising. It helps brands and business owners see the profitability of their campaign investments.
Let us look at a simple example:
If the total cost of your ad campaign is $ 1000 and your Total Conversion Value is $ 6000. Your Return on Advertising Spend will be (6000 / 1000 = 6)
This shows the company generates $6 in revenue for every $1 spent on Google Ads. Return on Advertising Spend is without a doubt one of the best Google Ads metrics.
Cost Per Conversion
Cost per conversion is the amount you are spending on each conversion. The cost of conversion and forms of conversion differ from one industry to another. These include purchase, form submission, or email signup. However, evaluating the profitability of your ad campaigns is paramount to ensure you are reaching your desired goal.
Quality Score
Quality score is a tool that is used in viewing how well your ads are doing compared to your competitors. It is calculated on a scale of 1-10 scale, and based on ad relevance, Click-Through-Rate, and landing page experience. The quality score also influences your ad ranking and when it appears.
Your ad quality score must be between 7-10 and a lesser score will disqualify your ad from appearing to your target audience. You should also always be monitored to ensure users have a pleasant landing page experience.
To find your ad’s quality score, sign into your Google account and add it to your Google Ads dashboard as a column.
Impressions
Impressions are a crucial Google Ad metric because they show the times your ad was displayed on a Google search result page. This is based on how many people search for the words or phrases you are targeting within search queries.
Your ads must be displayed so that people searching will click on them and convert to your website. This implies conversions require impressions, making tracking your ad impression a must. Monitoring your impressions data is also important to understand how great your ads are performing.
Numbers of Clicks
The number of clicks measures how often users interact with your ad. It shows how appealing your ads are to people and measures the effectiveness of your campaign. Clicks are the essence of Google Ads and essential
For example: A click is counted when someone clicks on your Google ad whether they reach your website or not.
The number of clicks helps digital marketers determine how to optimize their ad creative elements to capture the target audience's attention and persuade them to take action.
Revenue (Total Conversion Value)
Total conversion value is the total revenue generated when a conversion happens on a website through an advertising campaign. The total conversion value often falls between 7% and 10% but increases and decreases based on the industry.
Revenue often fluctuates even with unchanged conversion numbers. That is why it is important to monitor the overall conversion value and understand the entire conversion value.
Tips to Increase Your Total Conversion Value
- User-Friendly Website Experience: Digital marketers must ensure their website has a better user-friendly experience to increase conversion and total conversion value.
- Carry out A/B Test: Enhance your total conversion value by conducting an A/B Test to help you decide how to set up your ad campaign.
- Use Google Analytics: Use Google Analytics to understand your website visitors and develop the right strategy to increase revenue.
Wrapping Up
Understanding the importance of Google Ads metrics is essential for a successful campaign. Implementing the above Google Ad Metrics also ensures your campaigns run smoothly and efficiently.
However, you must ensure your website landing page is relevant to your ad campaign. Finally, do not be afraid to experiment with your Google Ads. These help you to be productive and discover what works and what doesn’t work for your business.