Top 10 Metrics to Track in Google Ads (And What They Mean)

Running a Google Ads campaign without tracking the right metrics is a bit like sailing without a compass – there’s a chance you’ll reach your destination, but you’re more likely to drift off course and burn through your budget without results. Whether you’re a seasoned marketer or a business owner just starting out, understanding which metrics matter most in Google Ads can make a world of difference. These data points not only help you optimise performance but also ensure you’re getting the best possible return on investment (ROI).

If you find the metrics a little overwhelming, partnering with an expert Google Ads agency in Melbourne can provide expert insight and hands-on management tailored to your business goals. But even with support, it’s still crucial to understand what’s under the hood. So, let’s dive into the top 10 metrics to track in Google Ads – and what they actually mean. 

Click-Through Rate (CTR) 

What it is: The percentage of users who saw your ad and clicked on it.
Why it matters: CTR is a key indicator of how relevant and compelling your ad is to your target audience. A higher CTR typically means your ad is resonating well, while a low CTR might indicate the need for better ad copy, targeting, or keyword selection.

Benchmark tip: A good CTR varies by industry, but anything above 2% is generally considered strong.

Quality Score

What it is: A score from 1 to 10 that Google assigns to your keywords based on the relevance of your ad, landing page experience, and expected CTR.
Why it matters: A higher Quality Score can lead to lower costs per click (CPC) and better ad placements. It rewards advertisers who create useful, relevant experiences for users.

Actionable insight: Improve your Quality Score by aligning your ad copy closely with your keywords and ensuring your landing page delivers what the ad promises.

Cost Per Click (CPC) 

What it is: The actual amount you pay for each click on your ad.
Why it matters: Understanding your CPC helps manage budget and ROI. While a high CPC isn’t always bad (if the clicks are converting), consistently high costs without results could mean your ads need tweaking.

Pro tip: Focus on high-intent keywords, and avoid broad match types that can lead to irrelevant traffic.

Conversion Rate 

What it is: The percentage of clicks that lead to a conversion – such as a form submission, purchase, or phone call.
Why it matters: This metric is critical for determining the effectiveness of your landing page and the quality of your traffic. Even with a high CTR, a low conversion rate might indicate that users aren't finding what they need after clicking.

Quick win: A/B test landing pages and simplify conversion paths to boost performance. 

Cost Per Conversion (CPA) 

What it is: The average amount you pay to acquire a customer or lead.
Why it matters: This tells you how efficiently your ad spend is turning into actual business results. Lower CPA = better ROI.

Pro insight: Keep an eye on both CPA and conversion volume. A low CPA is great, but not if it comes at the expense of volume. 

Impression Share 

What it is: The percentage of total possible impressions your ads received compared to how often they could have appeared.
Why it matters: Low impression share may mean you’re losing visibility to competitors, either due to low bids, budget constraints, or low ad quality.

Helpful strategy: Increase your bids on high-performing campaigns or allocate more budget to regain lost impression share. 

Search Terms Report 

What it is: A list of actual search queries that triggered your ads.
Why it matters: This report helps you see how users are finding your ads. It’s a goldmine for discovering negative keywords and opportunities to refine your targeting.

Pro tip: Regularly add irrelevant queries as negative keywords to prevent wasted spend. 

Bounce Rate (from linked Google Analytics) 

What it is: The percentage of users who click your ad and then leave your site without taking any further action.
Why it matters: A high bounce rate could indicate your landing page isn’t relevant, engaging, or functioning correctly.

Quick fix: Ensure your landing page loads quickly, is mobile-friendly, and matches the user’s intent. 

Ad Position / Average Position 

What it is: A measurement of where your ad typically appears on the search engine results page (SERP).
Why it matters: Higher ad positions often receive more visibility and clicks, but they also come with higher costs. Striking a balance between position and ROI is key.

Note: While Google has phased out “average position”, similar insights can now be drawn from “Top Impression Rate” and “Absolute Top Impression Rate”. 

Return on Ad Spend (ROAS) 

What it is: The revenue generated for every dollar spent on ads.
Why it matters: This is one of the most important metrics for ecommerce and businesses focused on direct revenue. It tells you exactly how profitable your campaigns are.

Formula: ROAS = Revenue / Cost. For example, if you made $500 from $100 in ad spend, your ROAS is 5:1.

What to aim for: Your ideal ROAS will vary depending on your business and profit margins, but a typical goal might be 4:1 or higher. 

These are the metrics that drive smarter decisions 

Monitoring these metrics regularly gives you the clarity to make informed decisions, refine your targeting, and ultimately drive more value from your Google Ads campaigns. But it’s not just about tracking numbers – it’s about interpreting them in context and knowing when to pivot. Remember, the power of Google Ads lies not only in its reach but in its data. Track the right metrics, and you’ll be well on your way to smarter, more profitable campaigns.