How To Measure Google Ads Performance

30/10/2023

How To Measure Google Ads Performance

Are your Google Ads performing as well as you think? Like anything and especially when it comes to marketing the key to success is checking what is and isn’t working and looking at all that hard factual data is the thing that’s going to give you the answers.

Once you uncover these insights, you can make some strategic changes. Amp up your budget during peak times and kill those underperforming ads so let’s dive into what you need to be looking at to help the success of your ads.

It Starts With Conversion Tracking

before we dive into what metrics matter I want to remind you of the first important step of tracking! I am hoping as of now you are sat with a tea knowing what tracking is and what you are tracking because if you are not, then your ads are already set up to fail!

Google ads are all about driving people to the goal you want, whether that be to get leads, sales or traffic you need to tell google your goal to help your ads and this starts with conversion tracking.

Setting Up And Monitoring Conversion Tracking

But let’s be honest, setting up and monitoring conversion tracking is no walk in the park. It’s more like navigating through a dense forest with a faulty compass and a pack of wild squirrels trying to steal your snacks. You have to dig into your website’s code, add some fancy tags, and hope that everything works seamlessly. And let’s not forget about the constant monitoring. It’s like being an overprotective parent, constantly checking on your kids to make sure they’re doing what they’re supposed to be doing. Except in this case, your kids are your website visitors, and you’re checking to see if they’re completing the actions you want them to take. It’s a never-ending cycle of tweaking, testing, and analysing. But hey, if you’re up for the challenge, the rewards can be sweet.

You’ll finally have concrete data to back up your marketing efforts and make informed decisions. So pull up your sleeves, tie your shoelaces tight, and get ready to dive into the world of conversion tracking. Just remember to keep your sense of humor intact. After all, with all the stress and headaches that come with this process, a little wit and charm can go a long way.

Which Metrics Matter Most?

Conversions rule the roost, making sure you’re getting the juicy leads or sales through your ads. However, there are a multitude of Google Ads metrics that are vital to keep an eye on in order to gauge the triumph of your campaigns. Here’s the breakdown:

Impressions: This pertains to how many times your ad has been flaunted or caught the eyeballs of lookers. Your budget dictates the frequency at which your ad is showcased.
Clicks: This metric reveals the number of times your ad was tapped on. While this is important, the quantity of clicks doesn’t really reflect the effectiveness of your ad; it’s the click-through rate that deserves your attention.
Click-through rate (CTR): This metric measures the effectiveness and pertinence of your ad; how frequently users tap on your ad. Click-through rate = # of clicks / # of impressions x 100. To ensure that your ad copy is hitting the mark, you’ll want to witness your click-through rate reaching 2% or higher.
Cost-per-click (CPC): Whenever someone clicks on your ad, you fork over a specific chunk of change to Google. This is what CPC (cost-per-click) is all about. The average cost per click is calculated by dividing the total amount spent by the number of clicks. When you have a well-optimised campaign, your cost per click should gradually decrease over time. So, spending less can actually result in getting more bang for your buck!
Conversions: This metric depends on how you define success when setting up your ads. It could be a purchase or a form submission, especially if you’re a service-based business using Google Ads to generate leads.
Average cost-per-action (CPA): You might have heard this referred to as cost-per-acquisition. It measures how much money it takes for you to get a customer to do a specific action. To calculate CPA, divide the total spend by the number of actions. An action could be any goal you set for your ads, like when a visitor makes a purchase on your snazzy website.

Patience Is Key

After the initial first week of running your Google Ads, it’s good to keep in mind that Google is still learning about your business. As such, it’s essential that in the first four weeks you set it up to the best of your ability and then allow it to run. Making too many changes may confuse Google and impact the performance of your campaigns. The key here is to give Google time to learn.

Track and analyse the metrics above closely and from month two you can begin to optimise your campaigns, testing and learning for continuous improvement. Adding new keywords, copy and negative keywords, you’ll get closer and closer to that perfect optimisation score of 100%, meaning that your account can perform at its full potential.

While you can go it alone it’s likely that, depending on the complexity of the Google Ads campaigns relevant to your business, you will need some expert help. Our team is here to support you, so get in touch today.