Metric | Description | Formula | How to Improve |
---|---|---|---|
Conversion Rate | Percentage of ad clicks that result in a conversion. Measures how well your ad persuades users to take action. | Conversions÷AdClicksConversions ÷ Ad ClicksConversions÷AdClicks × 100 | Optimize ad copy, improve landing page user experience, and target the right audience. |
Quality Score (QS) | A Google rating of the quality and relevance of your keywords and ads. Influences cost and ad positioning. | Factors: CTR, ad relevance, landing page quality | Improve CTR, ad relevance, and landing page experience to boost QS. |
Cost Per Click (CPC) | The average cost paid per click on an ad. Measures cost-effectiveness in driving traffic. | TotalAdCost÷TotalClicksTotal Ad Cost ÷ Total ClicksTotalAdCost÷TotalClicks | Optimize Quality Score, refine targeting, and use negative keywords to reduce irrelevant clicks. |
Click-Through Rate (CTR) | Percentage of clicks relative to impressions. Measures how well your ad captures the audience’s interest. | Clicks÷ImpressionsClicks ÷ ImpressionsClicks÷Impressions × 100 | Improve ad copy, use effective keywords, and target the right audience. |
Cost Per Acquisition (CPA) | Average cost paid for each conversion. Measures the cost-efficiency of customer acquisition. | TotalAdCost÷ConversionsTotal Ad Cost ÷ ConversionsTotalAdCost÷Conversions | Enhance conversion rates and optimize ad targeting to reduce CPA. |
Return on Ad Spend (ROAS) | Measures the revenue generated per dollar spent on ads. Shows ad profitability. | RevenuefromAds÷AdCostRevenue from Ads ÷ Ad CostRevenuefromAds÷AdCost | Refine targeting, use high-converting keywords, and optimize ad extensions to increase ROAS. |
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