Google Ads is Google’s online advertising program. Through Google Ads, you can create online ads to reach people exactly when they’re interested in the products and services that you offer.
Google Search allows you to show your ads to customers who are actively searching for the keywords that you’ve chosen. If you own a home renovating business, you bid to have your ad show up every time a user tipper in “Renovation in Dallas”.
Key Performance Indicators (KPIs) for Google Ads.
Analytics tools like Google Ads show you a whole range of different metrics, many of which are KPIs that reveal how successful your ads are.
While it’s always better to have too much information than too little, it’s best to have the right information. That means determining the right KPIs for your site, finding them in Ads, and using them to make your Pay-Per-Click (PPC) campaigns better.
The best metrics may vary from one campaign to another, but these AdWords KPIs are some of the most useful to achieve success.
What are Impressions and why do you need to check it?
Every time your ad appears, it’s called an “impression”. It helps you to show how many times your ad showed up instead of how well your ad is performing.
High Impressions but Low engagement and conversion rates indicate that your ad needs some restructuring. If you are dealing with Low impressions, low engagement, and low conversion rates that means you need professional help for your Google ads.
What’s the next metric to watch for?
Click-Through Rate (CTR):
Click-through rate is the percentage of total ad views that result in clicks. When the ad is visible which is an impression, as soon as it is clicked it becomes a Click. In most PPC platforms, CTR helps determine both your ad rank and your Cost Per Click (CPC).
The average Click through rate in Google Ads depends on your industry. Here is a look at Average CTR by industry by Wordstream:
So, we talked about Cost Per Click on the previous point. Let’s find more about it.
Cost Per Click (CPC):
Cost per click refers to the actual price you pay for each click on your Google Ads campaigns. It is calculated by dividing the total cost of your clicks by the total number of clicks. For CPC bidding campaigns, you set a maximum cost-per-click bid – or simply “max. CPC” – that’s the highest amount that you’re willing to pay for a click on your ad.
Average Cost Per Click: The average amount that you’ve been charged for a click on your ad. Average cost-per-click (avg. CPC) is calculated by dividing the total cost of your clicks by the total number of clicks.
Your average CPC is based on your actual cost-per-click (actual CPC), which is the actual amount you’re charged for a click on your ad. Note that your average CPC might be different than your maximum cost-per-click (max. CPC), which is the highest amount that you’re willing to pay for a click.
- Here’s an example of how to calculate your average CPC. Let’s say your ad gets two clicks, one costing $0.20 and one costing $0.40, for a total cost is $0.60. You’d divide $0.60 (your total cost) by 2 (your total number of clicks) to get an average CPC of $0.30.
- You can find your average CPC amounts in the “Avg. CPC” column in Campaigns.
Now we come to the part for which you are doing a Google Ad- Getting a customer or follower called Conversion.
Conversion: Any action when someone interacts with your ad which is counted (for example, clicks a text ad or views a video ad) and then takes an action that is defined as valuable to your business, which could be an online purchase or a call to your business or subscribing to your email, etc.
The average conversion rate in Google Ads across all industries is 3.75 percent for search and 0.77 percent for display. Dating & Personals is killing it, with by far the highest conversion rates for both search and display ads.
Last but not least we will talk about is Quality Score:
Quality Score is an estimate of how relevant your ads, keywords, and landing pages are to a person who sees your ad.
Higher quality scores typically lead to lower costs and better ad positions. The three main factors that influence the quality score for an account are:
Google Ads increases leads and customers If your campaigns are set up properly, it has the potential to send extremely targeted leads to your website. I personally love SEO and think to have an SEO plan is a key to part of your online success. That being said, Google Ads (PPC) will get you to the top of the search results in minutes.
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Kash Data Consulting LLC is a Search Marketing firm with years of experience in SEO, Google Analytics, Google Ads, Social Media Marketing, Local Search Marketing, YouTube Optimization, and Content Writing with WordPress CMS in Plano, Frisco, Allen, and surrounding DFW Metroplex areas.
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Written by Tarundeep Kaur, freelance content strategist and writer passionate about SEO and Social Media Marketing in Plano Texas. Loves to cook and paint in her free time. You can reach her on Linkedin.