Google Ads Metrics You Need To Focus On

Google Ads Metrics You Need To Focus On

In this blog you’ll learn about 5 tips that will help you in creating successful marketing campaigns on Facebook:

  • Conversions in Google Ads
  • Cost per Conversion in Google Ads
  • Lifetime Value of a Customer
  • Conversion Value and Conversion Value/ Cost
  • Conversion Rate
  • Search Impression Share

Google ads as a medium is quite different than others such as Facebook and Instagram. You go and browse the other platforms for entertainment purposes whereas when it comes to Google, people search for various things as per their need and curiosity. Thus, the intent of people looking up for any product or service on Google is higher as compared to other platforms.

Another feature that makes Google outstand all other platforms is the diversity it offers. You can use not just text ads through Google Search, but also image and video ads through Google Display. Once you’ve launched the ads, you’ll notice the variety in not just ads but also the metrics they have to offer! Many of these are vanity metrics and do not require your focus. Giving your attention to metrics that do not matter much may lead you to making bad business decisions.

Let’s get started!

Conversions in Google Ads

While you are spending your money, you need to closely look at the conversions and cost per conversion. On the surface, metrics such as impressions may give numbers on the higher side and give you a ‘feel good’ factor, however these are nothing more than numbers if you do not see conversions.

Cost per Conversion in Google Ads

It’s always good to see the number of conversions riding in the dashboard. But remember it is due to the amount being spent on showing the ads to people and you need to keep in mind that each conversion has a cost. If this cost is continuously higher than the product or service you are providing, it may not be beneficial for your business.

Therefore it is important that you keep a close check to this value. Say, you spent Rs.2000 in acquiring a customer but your product’s price is only Rs.1000, the marketing won’t be sustainable for you.

Cost per conversion or acquisition simply implies the cost that you had to spend for gaining 1 customer and can be calculated as:

CPA = Amount Spent/ Conversions

Lifetime Value of a Customer

It can be explained as the total amount that a customer acquired by you spends on your brand over their lifetime. Taking the example shared above, if you’ve spent Rs.2000 in acquiring the customer and he purchased a product worth Rs.1000 from you, the probability is that the same person may purchase again from your website. When he purchases Rs.1000 product again, it becomes equivalent to the amount you had spent on acquiring him. Therefore, if you are a business looking forward to expansion, you can rely on the Lifetime Value of a customer. Their repeated purchases will become the reason for driving your business into profit.

Conversion Value and Conversion Value/ Cost

If you are an ecommerce business, you can look at the conversion value to know exactly how much revenue you’ve generated out of the ads.

Conversion Value/ Cost metric provides the ratio of return on ad spend (ROAS).

ROAS of more than 1 signifies you generated more revenue than the amount you have spent on the ads and is considered good.

ROAS of less than 1 signifies you generated less revenue than the amount you have spent on the ads and you can make improvements in your ad or targeting for a better ROAS.

If you are unable to see these values in your dashboard, you can click on the ‘Columns’ option available and select the same from the pop-up menu that appears.

Conversion Rate

Once you start looking at this metric, you may notice many highs and lows. Conversion rate signifies the rate at which the viewers are taking the desired action post ad click. It is calculated as:

Conversion Rate = Conversions/ Ad Clicks

Higher conversion rate in Google ads gives you a good insight into your best-performing ad copy, keywords, and landing pages. Learnings from a campaign with higher conversion rate can always be implemented to other campaigns as well. It is necessary that you keep trying different ad copies and landing pages to know what works best for your brand.

A bad conversion rate may mean any of the following:

1. Your landing page is not optimized

One of the challenges that most businesses face is the loading speed of the landing page. You need to ensure that your page opens up under 3 seconds to avoid drop in the conversion rate. For this, you can also try Accelerated Mobile Pages as landing pages.

2. Mismatch in your ad copy

It is quite possible that you skipped a part of important information in the ad copy or the messaging on the landing page is different from the one which was used in your ad text. This difference may lower the trust of a user and cause him to drop off from the page without converting.

3. Improper Targeting

You need to ensure that you are targeting the right people for your ad campaign. For this, it is important that you know your customer well such as the search terms they use or the age group they belong to. If you are trying to sell a sophisticated product, you need to set the audience as per that.

Search Impression Share

When you create your ad campaigns, you expect your ad to show up whenever people search for the respective search term. Search Impression Share tells you the percentage of times your ad is bound to show when a person searches.

Example: If there are 100 opportunities of displaying your google ad and it gets displayed 40 times, then, it means that your search impression share is 40%.

This isn’t the metric that you’d look at first out of all the metrics, but can play a role in critical analysis. An ideal scenario would involve your ad showing at maximum places possible. 2 factors that can play an important role include:

a. Budget Allocation
b. Quality Score
‘Search Impression Share Lost Due to Budget’ metric tells the percentage of times your ad would have appeared more if you had budget allocated on the higher side.


This was all about the important metrics you need to keep an eye on for managing your Google ads well. You can also keep your ad accounts optimized with daily or weekly free reporting wherein you’ll get head-ups regarding any metric that needs to be improved along with ways for doing so. Sign up now to ensure you stay updated with your account metrics and improve your conversions.

Share this:

Facebook Comments

This website uses cookies to ensure you get the best experience on our website. Learn more