Top 10 Google Ads KPIs: An Ultimate Guide with Examples

Safalta Expert Published by: Vanshika Jakhar Updated Fri, 23 Dec 2022 03:30 AM IST

Google Ads (formerly known as Google AdWords) is an online advertising platform developed by Google where advertisers can create and run ads targeting specific audiences. The platform allows businesses to set a budget for advertising and only pay when their ads are clicked on by users. By tracking the KPIs, businesses can understand the performance of their Google Ads campaigns and make informed decisions on how to optimize them for better results.

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Table of Content
What is Google Ads?
How to Analyze Google Ads
Types of Google Ads Goals
Top 10 Google Ads KPIs

What is Google Ads?

Google Ads (formerly known as Google AdWords) is an online advertising platform developed by Google, where advertisers can create and place ads on Google search engine results pages (SERPs) or other websites that are part of the Google Ads network. The Google Ads network includes Google search, Google Maps, and other Google sites, as well as third-party websites that have signed up to show ads. Advertisers pay for these ads on a pay-per-click (PPC) basis, which means that they are charged each time someone clicks on their ad.

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Source: Safalta

Google Ads allows businesses to target specific audiences and geographic locations, and to set a budget for their ad campaigns. It provides a range of tools and features to help advertisers create and manage their campaigns and to track the performance of their ads.

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How to Analyze Google Ads

To analyze Google Ads, you can use the Google Ads performance report to track the performance of your ads and campaigns. Here are the steps to follow:

  1. Sign in to your Google Ads account and click on the "Reporting" tab.
  2. Select a date range for the report. You can choose from predefined ranges or create a custom range.
  3. Select the metrics you want to analyze. Some common metrics include clicks, impressions, cost, and conversions.
  4. Select the dimensions you want to use to segment the data. For example, you might want to see a performance by device type or by geographic location.
  5. Use filters to narrow down the data. For example, you might want to see only data for a specific campaign or ad group.
  6. Use the data in the report to identify trends and patterns, and use this information to make changes to your ads and campaigns to improve performance.

Some additional tips for analyzing Google Ads:

  • Use conversion tracking to measure the effectiveness of your ads in driving conversions, such as sales or leads.
  • Monitor your ad spend and cost per conversion to ensure that you are getting a good return on your investment.
  • Use A/B testing to compare the performance of different versions of your ads and identify which ones are most effective.
  • Regularly review your targeting and bid settings to make sure they are still relevant and effective.
  • Use the Google Ads Keyword Planner to research new keywords and get ideas for ad campaigns.

 

Types of Google Ads Goals

Google Ads offers a variety of goals that advertisers can choose from when setting up their campaigns.

Some of the main types of goals available in Google Ads include:

  1. Brand awareness and reach: This goal is focused on increasing the visibility and recognition of a brand among a target audience.
  2. Traffic: This goal is focused on driving more traffic to a website, app, or physical location.
  3. Conversions: This goal is focused on getting users to take a specific action, such as making a purchase or filling out a form.
  4. Product and brand consideration: This goal is focused on getting users to consider a brand or product when making a purchase decision.
  5. Customer acquisition: This goal is focused on acquiring new customers through advertising efforts.
  6. Local store visits: This goal is focused on driving foot traffic to physical locations, such as stores or restaurants.
  7. Phone calls: This goal is focused on getting users to call a business directly from an ad.
  8. App installations: This goal is focused on getting users to install an app.
  9. Lead generation: This goal is focused on getting users to provide their contact information, such as an email address or phone number, through a form or other means.
  10. Sales: This goal is focused on driving online or in-store sales.

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Top 10 Google Ads KPIs

  1. Cost-per-click (CPC): This is the average amount that you are charged for a click on your ad. It is calculated by dividing the total cost of your clicks by the number of clicks.
  2. Click-through rate (CTR): This is the percentage of users who click on your ad after seeing it. It is calculated by dividing the number of clicks by the number of impressions (number of times your ad was shown).
  3. Conversion rate: This is the percentage of users who complete the desired action (such as making a purchase or filling out a form) after clicking on your ad. It is calculated by dividing the number of conversions by the number of clicks.
  4. Cost-per-action (CPA): This is the average amount that you are charged for a conversion. It is calculated by dividing the total cost of your conversions by the number of conversions.
  5. Return on investment (ROI): This is a measure of the profitability of your ad campaign, calculated by dividing the revenue generated by the cost of the campaign.
  6. Quality score: This is a rating assigned to your ad by Google, based on factors such as the relevance and usefulness of your ad and landing page to the user, as well as the expected click-through rate. A higher quality score can lead to lower costs and better ad placement.
  7. Impression share: This is the percentage of impressions that your ad received compared to the total number of impressions that it was eligible to receive.
  8. Average position: This is the average position of your ad on the search results page. A higher average position can lead to more impressions and clicks.
  9. Average cost-per-thousand-impressions (CPM): This is the average amount that you are charged for every 1,000 impressions of your ad. It is calculated by dividing the total cost of your impressions by the number of impressions, then multiplying by 1,000.
  10. Bounce rate: This is the percentage of users who leave your website after viewing only one page. A high bounce rate can indicate that your ad or landing page is not relevant or useful to users.

It's important to track and analyze these KPIs to understand the effectiveness of your ad campaigns and make decisions about them.

How does Google Ad work? 

With Google Ads, businesses create and run ads that are targeted to specific keywords and audiences. When a user searches for a term related to the business's products or services, the business's ad may appear in the search results. When the user clicks on the ad, the business is charged a fee (the "pay-per-click" or PPC fee).

How much does Google Ads cost? 

The cost of Google Ads depends on various factors, including the competitiveness of the keywords being targeted and the quality and relevance of the ad and landing page. Generally, businesses should expect to pay anywhere from a few cents to several dollars per click.

How do I track the performance of my Google Ads campaigns? 

Google Ads provides a range of tools and reports that allow you to track the performance of your campaigns. You can use these tools to see how many clicks and impressions your ads are getting, what the click-through rate (CTR) is, and how much you are spending. You can also see how your ads are performing in terms of conversions (e.g. sales, leads) and use this information to optimize your campaigns for better results.

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