Beginner’s Guide to Google AdWords Metrics

Feb 05, 2020 ● 3 min read

Google AdWords is the leading advertising platform that operates on a pay-per-click model. It allows you to match your promotion with user intent by tracking hundreds of AdWords metrics that show important data.

Once you have your ad account set up, your ad groups and campaigns set properly, multiple ads run, and different versions of copy tested, it’s time to see if all of this is working.

Google ads require constant analysis which includes monitoring, evaluation, and optimization. Google Adwords reporting tool may be a great solution for beginners and pros. 

That’s why you need to know which metrics are important to track and which are not worth your time and effort. The goal is to use the data they provide to improve your ad campaign’s performance.

The Most Important Google AdWords Metrics

Impressions

Impressions are one the most important AdWords metrics because it shows how many times your ad was displayed on a Google search result page based on matches between the keywords you use in your campaign and the terms and phrases within search queries.

Your ads must be shown to give people who search for a chance to click on them and convert them. In other words, you need impressions to get conversions. That’s why you need to track this metric, regardless of your goal.

If you are leading a branding campaign, it can show you the number of customers that noticed your ad with the catchy slogan that will help them remember your brand.

Cost

Money is probably the best metric that will tell you how your ads are performing. It’s important to be informed about where your ad budget is going, and whether you’re taking advantage of it or you’re just wasting money.

High costs won’t get you high profits, in which case it’s best to decrease the wastage throughout your AdWords account.

Clicks

This metric shows the number of clicks on your ad, or more specifically, how many times any linked text in your ad was clicked. Usually, more clicks mean that more people are coming to your site thanks to your ad.

This metric can help you realize if people are attracted by your ad, and if you need to change anything to make it more appealing to them.

CTR or Click-Through-Rate

To calculate your CTR, divide your clicks to impressions. This AdWords metric reveals the quality of your keywords, positioning, and imagery. It can help you realize the effectiveness and relevance of your ad campaign, and if you’re communicating well with searchers.

A high CTR shows that you are using appropriate ad text and keywords and targeting the right audience. On the other hand, a low CTR indicates a disconnection between your audience and your campaign.

CPC or Cost Per Click

This AdWords metric reveals how much you spend for each click, which is important for the financial success of any pay-per-click campaign. Your CPC determines your ROI (return on investment), which is why you need to look at it. Monitoring this metric will help you see if you are over- or underpaying for clicks.

Conversions

Whenever someone clicks your ad and takes the desired action (signup, a visit to your webpage), it’s counted as a conversion. Tracking this metric can help you see the success of your ads.

It helps you see how many conversions this advertising platform drives for your brand or business. This metric allows you to calculate your ROI.

Impressions by Campaign

This metric shows the total number of impressions (the number of times your ads are displayed) segmented by each campaign you’re running.

You may want to track this metric to find out the best keywords and subjects that have the ad inventory and volume needed for success.

Cost Per Conversion

This AdWords metric shows how much it costs you to acquire each customer that makes a purchase. In other words, it’s the average cost you pay for conversion from your campaign.

To get this metric, divide the total cost of conversions by the total number of conversions. Keep in mind that a conversion is an activity you set in your campaign that marks an important achievement, such as signups, purchases, etc.

Monitoring this metric is important because it helps you estimate your future spending based on a goal number of conversions.

ROAS or Return on Advertising Spend

This AdWords metric shows the amount of money you’re getting back from your ad campaign. If you want to know how your ads are doing, this is the metric to look at.

ROAS or Return on Advertising Spend is calculated by dividing the amount of money spent on ads by the amount of money received from ads. To find the exact ROI, you need to monitor your sales and deals and look where your leads and customers came from.

Quality Score

This metric shows the quality of your ads. Quality Score reveals if your ad and landing page are relevant enough for your keywords. This metric depends on ad relevance, possible click-through rate, and the quality of your landing page.

Two keywords within one Ad group don’t necessarily have the same Quality Score. A high-Quality Score means that your landing page and ad are relevant to your audience.

Reach

Reach reveals how many people have seen your ads. If you notice your ads are not performing as good as you expected, place them carefully. However, make sure you keep the Search Network separate from the Display Network.

Conclusion

Keeping track of some of the most important AdWords metrics is crucial for the performance of your ad campaigns and return of investment. Therefore, make sure you look at the metrics we listed in this article, as they can help you decide what’s working for you and whatnot.

Written by Mike

Former data analyst and the head of Whatagraph blog team. A loving owner of two huskies, too.