Ways to measure PPC campaign success

Published on: January 17, 2025

Published by Marty Paukstys, founder of D2CEBL. 20+ years of Google PPC & Analytics experience. Google Ads Search and Google Analytics certified.

Return on Investment (ROI) is the most important metric by large, at least in my world. All other metrics in the world don't matter if targeted ROI isn't achieved. All of your metrics can shine, and yet your bottom line - sales and profit - may be subpar.

Here are several articles I recommend reading to improve your ROI:

Your concentration should always be on your bottom-line, which is ROAS, ROI and sales and, better yet, profit. All other metrics are secondary which should not be an ultimate goal, but the means to achieve your main goals instead.

Measuring the success of your Pay-Per-Click (PPC) campaigns is crucial for optimizing your advertising spend and achieving your business goals. It's not just about tracking clicks; it's about understanding which actions drive real value. Here's a comprehensive guide to the key ways you can measure PPC campaign success, incorporating various Google Ads features and strategies.

1. Define Your Goals and KPIs

Before you even launch a campaign, clearly define what success looks like. Are you aiming for increased sales, lead generation, brand awareness, or website traffic? Your goals will dictate the Key Performance Indicators (KPIs) you should monitor. Common KPIs include:

Conversions: The most direct measure of success, whether it's a sale, a form submission, or a phone call. Track conversion rates to see how effectively your ads turn clicks into desired actions.
Cost Per Conversion (CPC): The amount you spend to achieve one conversion. Lowering your CPC while maintaining conversion volume is a key optimization goal.
Click-Through Rate (CTR): The percentage of people who see your ad and click on it. A high CTR indicates that your ads are relevant and engaging.
Impression Share: The percentage of times your ads are shown when people search for relevant keywords. Monitoring impression share helps you understand if you're missing out on potential traffic.
Return on Ad Spend (ROAS): Measures the revenue generated for every dollar spent on advertising. This is a critical metric for understanding the profitability of your campaigns.
Website Traffic: Increased website visits are important for brand awareness and potentially future conversions.

2. Track Conversions Accurately

Accurate conversion tracking is the foundation of measuring PPC success. Google Ads offers several ways to track conversions:

Website Conversion Tracking: Implement conversion tracking tags on your website to track form submissions, purchases, and other actions.
Phone Call Tracking: Track calls generated directly from your ads using Google forwarding numbers.
Import Offline Conversions: If you track conversions offline (e.g., sales closed by phone), import them into Google Ads to get a complete picture of your campaign performance.

3. Utilize Google Ads Reporting

Google Ads provides a wealth of data to analyze your campaign performance. Take advantage of the following reports:

Predefined Reports: Use the ready-made reports to get insights into key metrics like clicks, impressions, conversions, and cost.
Custom Reports: Create custom reports to focus on the metrics that are most important to your business goals.
Cross-Campaign Reporting: Analyze performance across different campaign types to identify what's working best. Cross-Campaign Reporting allows you to see the bigger picture.

4. Analyze Search Terms

Regularly review your search terms report to identify the actual keywords that are triggering your ads. This helps you:

Identify irrelevant keywords: Add negative keywords to prevent your ads from showing for unwanted searches.
Discover new keyword opportunities: Add high-performing search terms as new keywords to your campaigns.

5. Leverage Bid Strategy Reports

If you're using Smart Bidding strategies (e.g., Target CPA, Target ROAS), use the bid strategy reports to understand how your bidding is performing and make adjustments as needed. These reports offer insights into the algorithm's performance and help you troubleshoot any issues.

6. A/B Testing

Continuously test different ad variations, landing pages, and targeting options to improve your campaign performance. Google Ads makes it easy to run A/B tests.

7. Conversion Lift Studies

For larger campaigns, consider using conversion lift studies to measure the incremental impact of your ads on conversions. This helps you understand the true value of your advertising efforts beyond basic conversion tracking. Instructions on how to Measure Ad Campaign Impact with Conversion Lift Studies

By diligently tracking these metrics and utilizing the reporting features in Google Ads, you can effectively measure the success of your PPC campaigns, identify areas for improvement, and optimize your advertising spend for maximum ROI.