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5 Google Ads metrics that matter most: how to improve them?

Google Ads metrics

As one of the most effective tools for online and digital marketing, Google Ads occupies a premium spot on the list of tools that marketers can use for optimal results. With a $224 billion revenue, Google Ads has grown considerably large, and the returns it can generate are beyond impressive. Such a comprehensive and potent tool has a lot of metrics to ensure that it is being used as effectively as possible for the best return on investment or ROI. These metrics need to be monitored for effective usage, and while all of them can be monitored, here are the 5 Google Ads metrics that matter the most.

However, that’s not all. Google Ads is not all about monitoring; we’ll also run you through improving these metrics so the ROI you get from such a fantastic tool justifies the cost. First, look at these five Google Ads metrics that are most imperative for a good digital marketing campaign. 

The 5 Google Ads metrics that matter the most

Let us look at the 5 most important Google Ads metrics and how you can improve them. 

CTR (click-through rate)

Click-through rate or CTR is the most simple, basic, yet important metric for Google Ads.  It is a straightforward concept: if your Google Ad was displayed 100 times, and only 10 users clicked on it, the CTR would be 10 per cent. CTR shows the simplest metric: how many users are positively interacting with your advert. It also reveals that your messaging, wording, layout, and advert, in general, are working; for CTR that is too low, it will be evident any of these things need to be fixed in your favor. However, it should be noted here that CTR isn’t everything and should only be gauged with other metrics in tandem. Low conversion rates and good CTR might indicate an issue stemming from the landing page. 

CTR can be made better; there are a lot of things that can be done to improve it. The most common and popular method is optimizing the ad copy for relevant keywords since it will massively increase CTR and conversions. Another way to ensure your CTR stays high is by performing A/B testing regularly to ensure your advert resonates well with your audience.

CPC (cost per click)

Another one of the metrics that simplifies results is CPC or cost per click. It works on a simple principle: what an advertiser pays each time an advert is clicked on. For example, if you paid $100 and got 50 clicks on your advert, your CPC will be $2. This, much like CTR, accurately shows how much you have to spend to get results, and ideally, your CPC is better as low as it can get. When CPC goes in the decimal points, the advert is performing well. However, much like CTR, CPC must be gauged in conjunction with other metrics; doing it solely on CPC will not get you the whole picture. 

CPC can likewise be improved upon. By using a Quality Score Review, you can easily gauge how well your CPC might be. A higher score should mean that your CPC should be low. If not, you can always use geotargeting for advanced and more pinpoint targeting and remove negative keywords to lower your CPC. 

Conversion rate 

Conversion rate is the end result, the final action that your advertising efforts are geared towards. It is a simple indicator of how well your adverts are performing. Conversion rate is the rate of how many people perform the desired action after clicking or interacting with the advert. This could be gauged through purchases made, applications downloaded, or even if you want people to sign up for your newsletter. The better your conversion rate, the better your business will be; it will never show whether the ad copy is working or if the keywords might be problematic. It simply represents your business. 

By streamlining your conversion rate, you will be bettering your revenue stream. This includes testing out your campaigns using the A/B method and ensuring that load speeds for your landing pages are optimized so a paying customer doesn’t get discouraged. Finally, to increase the chances of a conversion, you can make your messaging consistent across all pages and adverts. 

Return on ad spend (RoAS)

Much like CPC, return on ad spend, or RoAS, is a holistic overview of how much is spent on the campaign versus how much is generated. RoAS, therefore, shows exactly what your campaign needs to generate to break even or start turning a profit. The idea here is simple: if your RoAS is negative or equal, you need to work on your campaign, adverts, and ad copies to ensure more and more conversion happens. On the contrary, if your RoAS is positive, it means that whatever is being spent on the campaign is worth it because you are generating significantly more. However, the percentage needs to be significant since RoAS, which is only slightly positive, is not a good indicator and is not usually sustainable. 

Everything from design, your CTA or call-to-action, and your copy can significantly affect your RoAS, so you can hone them further to increase your RoAS. Another thing that can radically increase your RoAS is dynamic remarketing, which is customizing adverts for users who may have visited your landing page but might not have transacted. By displaying products they might have shown interest in, you can ensure conversion from this sect, which will always result in good RoAS. 

Cost per acquisition (CPA)

CPA, or cost per acquisition or conversion, is a holistic overview of cost per click and your conversion rate. CPA is concerned with the cost of acquiring a conversion or a business lead that results in a transaction. This, in tandem with conversion rate and your RoAS, can accurately depict the outlook of your advertisement campaign and how well it might be performing. Again, with a higher CPA, your profitability is affected adversely, so it might be time to work on that ad copy. However, if your CPA is low, you have to spend less on getting a conversion, which means that the advert is working as intended.

CPA can be made better by doing everything listed beforehand and more. One important tip to note here is budget allocation: what it entails is essentially redirecting marketing revenue from high-performing campaigns with better CPAs to other low-performing ones to ensure an optimal distribution of budget and better ROI from all campaigns without increasing the budget.

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