Google Ads Terms

Google Ads provides a variety of metrics and reports to help you track your campaigns and make data-driven decisions. Since Google Ads is a pay-per-click (PPC) tool, you can decide how much you want to spend based on your campaign type.

The Most Important 9 Metrics on Google Ads

All of the metrics and statistics can provide detailed insights, but you may want to focus more on some of them. Here are the most important terms that marketers should monitor on a daily or weekly basis:

1. Impression metrics are used to see the number of times your ad was displayed on a search results page or website. If you have multiple campaign groups, monitor ad impressions for each segment. Higher impressions increase the probability of your ad being clicked.
2. Clicks are a kind of bidding strategy and measured by the number of times a person clicked on your ad. Clicks and impressions are distinct from one another, so it is important not to confuse them. By analyzing clicks, you can track how effective your campaigns are at generating conversions.
3. Click-through rate (CTR) is calculated by dividing the number of clicks by the number of impressions. This ratio shows how many of the impressions result in clicks.
4. Cost-per-click (CPC) refers to the average amount you pay each time an audience clicks on your ads. It is a crucial metric because it’s directly linked to your budget.
5. Conversions are another significant metric in Google Ads. Conversions indicate the frequency of desired actions someone took on your website, such as making a purchase, completing a checkout process or filling out a form.
6. Conversion rate is the number of conversions divided by the number of clicks. This is a rate at which visitors to your website complete a desired action. It leads to your revenue eventually.
7. Cost is the total amount of money you’ve spent on your campaign.
8. Cost-per-conversion is the average amount you pay for EACH conversion.
9. Quality Score has an impact on your PPC ads and cost-per-click. By multiplying your quality score and CPC bid, you will get your ad rank. Your CTR, keyword relevance, and landing page quality will affect when calculating quality score.

Other Reports on Google Ads

Besides the metrics mentioned above, Google Ads also offers other reports that you can use to view and analyze your campaign data.

• Bounce rate is the proportion of bounces. Bounces mean that visitors who leave your website quickly after viewing only ONE page without taking action. Although it is not possible to avoid bounces, you can reduce this rate by regular tracking and choosing relevant keywords.
• Return on advertiser spend (ROAS) stands for the amount of total revenue divided by total spend. In other words, it shows how much revenue you earn for each amount spent on advertising. For example, if you invest $200 in an ad campaign and generate $400 in revenue from those ads, your ROAS would be 2.
• Return on investment (ROI) is how much profit you made from your advertising spend. ROI is the most important metric for retailers as it shows the actual effect of ads on your business.
• Cost-per-acquisition (CPA) represents the total cost of a sales transaction. To explain further, it is also called “cost-per-action” and it measures the cost for a customer to complete a particular action.
• Goal completions indicates the number of times certain goals have been achieved by completing actions on your website, such as making a purchase or signing up for a newsletter.
• Revenue is the total sum of money earned from the website, including all conversions and transactions. To maximize revenue, marketers must spend on digital marketing efforts.
• Average position is the average ranking of your website URLs on the paid search results ordering. It does not exactly tell your Search ads location.
• Top impression rate is the percentage of your total ad impressions that were shown at the top of the search results page. If it was on the very top, it is called the absolute top impression rate.
• Outranking share is the percentage of auctions where your ad was displayed in a higher position than a competitor's ad. Auction is the process by which Google decides which ads will appear for a particular search and in what order they will come out on the page.

Conclusion

In summary, Google Ads provides a great number of tools that allows you to see problems in your ads strategy and to improve your campaigns. You must understand these terms and use the needed metrics to achieve your marketing goals.