5 Essential Metrics to Measure Success in Your Adwords Campaigns

You constantly hear people telling you that you need to monitor and keep an eye on your metrics when it comes to paid ads in your Adwords campaigns, but what does this really mean?

You get that you need to measure your campaign's effectiveness, but which of these mysterious metrics are the best ones to give you a clear picture?

My view is that they are all useful, but if pressed to give you 5 top metrics to monitor, these next few would be the ones I would choose.

5 Essential Metrics to Measure Success in Your Adwords Campaigns

  1. Costs The way I like to monitor costs in my campaigns is by applying the 80/20 principle. I want to spend the most time and resources at my disposal on the ads that are doing the best. They may not be the lowest cost per click or have the highest quality score, but if they are generating ROI and Google is giving them traffic, my attention needs to be there.

  2. Converted Clicks This one is obviously very important, as you need your ads to convert, no matter what the objective. This number can give you a picture of how the overall effectiveness of the segment is going, and allows testing to explore ways in which it can be improved.

  3. Cost per converted click Perhaps the most important metric, how much it is costing you to attain a conversion. This is a base measurement you need to have in order to determine the success or failure, and whether to cut back or scale the campaign.

  4. Quality Score A check of your quality score profile can give great insight as to why you may or may not be getting the best results. Earning a high quality score is a function of click through rate, relevance to the ad, searcher, and landing page and your landing pages themselves, in that order. Quality scores will greatly impact your ad position, costs and whether or not you get impressions in the first place. Our Adwords tool Ad Assistant is a terrific aid in allowing you to write great ads, which in turn will lead to better quality scores.

  5. Profit per Impression Brad Geddes excellent article on profit per impression reveals what many current Adwords professionals consider the most important metric of all. PPI measures from the initial impression, thus taking into account the entire ad experience, and determines the value of the advertising campaign as a whole. It takes a bit more digging to come up with these numbers, but in the end they give you a far clearer view.

Gaining a deep understanding of these 5 metrics will unlock new potential in your camapigns. It requires more thought than merely looking at a few numbers and tweaking your ads based on them. You will need to understand the actual value of these numbers and how to use them to make sound decisions in your Adwords campaigns.