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How to Evaluate Your Google Ads Performance

How to Evaluate Your Google Ads Performance

After promoting your products and services on Google Ads, the next thing that you should focus on is if you are getting more customer inquiries, improving site traffic, and increasing your sales. This article will discuss the different Google Ads metrics that you should monitor for you to evaluate your Google Ads performance.

How to Evaluate Your Google Ads Performance Google Ads Dashboard Overview

Google Ads Dashboard Overview

How to Evaluate Performance in Google Ads

To know if your Google Ads performance meets your business goals and financial capabilities, you need to monitor them based on three types of metrics: traffic-based metrics, conversion-based metrics, and return on investment-based metrics.

You can check them out below:

Traffic-based Metrics

The first thing you can look into to evaluate your Google Ads performance is to check your traffic-based metrics. You can find this on your campaign dashboard. These metrics include impressions, clicks, click-through rate, quality score, and the average cost per click.

  1. Impressions

    When you say impression, it is the number of times your audience has seen your ad.

  2. Interactions

    These are the main actions of your ad format, including views for video ads or clicks for product shopping ads.

  3. Clicks

    It is a metric that measures how many times people click your ads. By looking at your clicks, you can identify which keyword works best.

  4. Click-Through Rate (CTR)

    The CTR is the percentage of people who viewed your ad and then clicked on it. You can get this number by getting the ratio between total clicks on an ad and its total impressions.

  5. Quality Score

    You can evaluate your quality score based on your keyword and ad CTR, ad group keyword relevance, and landing page quality. A positive page user experience guarantees a higher quality score.

  6. Ad Groups

    You can also check your ad groups to know which ones contribute more to your conversions and how much they cost. With this, you can adjust or update your keywords and ad copy to achieve better Google ads performance.

    ad group image

  7. Keyword Performance

    Also, you must analyze your keyword performance, especially if your goal is to increase your ad conversions. Focus your budget on keywords that result in conversions. You can add more keywords or modify them to improve their performance. Then, if they are becoming too costly without giving you that expected conversion, you can pause them. 

    keyword performance of ads

  8. Ads and Extensions

    Under the Ads tab on your Google Ads dashboard, you can see all of your ongoing ads. Here, you can also see the campaign and ad group that they belong to. The ads tab also shows you the status, ad type, impressions, interactions, and interaction rates of your existing ads. Also, it is here where you can pause low-performing ads. Moreover, this is also where you can see the cost, average cost, conversions, conversion rates, and cost per conversion of your ad campaigns.

    ads description

    Then, under the Extensions tab, you can get reports regarding the performance of your extensions. These include callouts, sitelinks, structured snippets, calls, locations, affiliate locations, leads, and more. As such, if you click on an existing extension, Google Ads will show you a report on their respective levels, status, impressions, costs, clicks, conversions, conversion rates, and costs per conversion.

    How to Evaluate Your Google Ads Performance Dashboard Extensions Tab

    Google Ads Dashboard (Extensions Tab)

Conversion-based Metrics

Aside from traffic-based metrics to help evaluate your Google Ads performance, you also need to check on conversion-based metrics to know if your ads help you get more customer calls or inquiries and generate sales. Conversion occurs when a customer clicks on an ad and performs an action, including signing up for a newsletter, purchasing a product, or downloading and installing a mobile application. Ideally, each conversion value should be greater than how much you spent to achieve said conversion.

  1. Conversion Rate

    The conversion rate determines how many people clicked on your ad and completed a trackable conversion. These include filling out and submitting an inquiry form, purchasing a product, or calling your business. The conversion also identifies which keywords to use to generate the best CTR.

  2. Cost Per Conversion (CPC)

    By reviewing your cost per conversion, you can identify how much on average your business is spending for each conversion.

Return on Investment-based Metrics

Now, if you want to evaluate your Google Ads performance based on your business advertising goals, you can review your ROI-based metrics. It also reveals the real-time effect of your ad campaigns on your business. Thus, if you track your return on investment (ROI), you will see how much you are making and which keyword match types and ads generate sales through your campaigns.

  1. Return on Investment (ROI)

    You can determine your ad’s ROI by dividing the difference using this formula: Ads ROI = [(Total Profit – Advertising Costs) / Advertising Costs] x 100.

  2. Customer Conversion Tracking

    You can also track which call or inquiry would lead to customer conversion. The value of that customer then helps you determine and focus on campaigns that drive a more positive ROI for your business.

How to Evaluate Your Google Ads Performance PPC Management Service Providers Working on Ads

Evaluate and Improve Google Ads Performance

Overall, you must monitor and evaluate your Google Ads performance. In doing so, you can determine relevant keywords and ad campaigns that work best for your business. By evaluating your Google Ads performance, you can work on areas that need improvement. As a result, in the next ad campaign, you will know what needs to be done to achieve your business advertising goals. Should you need guidance in evaluating your Google Ads campaigns’ results, you can get assistance from a PPC management services provider in the Philippines!

Jalou Batilong

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Most every great writer is a voracious reader, and no word describes Jalou better. Jalou enjoys a good read whenever she has the time to sit down and open a book or browse for interesting articles. It's through reading that she is able to digest information so easily, and write her own unique piece of information to share to everyone else.

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