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Matt Owens7/19/22 10:00 AM1 min read

How to Evaluate Google Ad Performance

Running Google PPC with GGMS is an excellent opportunity to gain new leads into your database. Here are the top 3 metrics we look at when evaluating the success of your campaigns.

1. Conversions

By definition, "Conversions" show the number of conversions you received after ad interactions, such as text ad clicks or video ad views.

Simply put, conversions are the number of leads we have captured with our campaigns. It is crucial to keep an eye on this number for each campaign. If the number is low, you may notice that your cost per conversion will be higher. On the flip side, if the number is high, you will see the price will go down per conversion. 

2. Cost per Conversion

Cost per conversion shows the average cost of a conversion. It's your cost divided by your conversions.

As a goal, we like to see the cost per conversion for our campaigns be around or below $15 per conversion. You will be draining your ad spend if you're paying $25 per conversion.

In some cases, a high cost per conversion could mean that your campaigns need more time to "season" or "mature." After launching your campaigns, ideally, we like to wait 45-90 days for the campaigns to fully "season." 

3. Conversion Rate

The last metric we suggest looking at is the conversion rate. The conversion rate shows how often, on average, an ad interaction leads to a conversion. It's "conversions" divided by the interactions with your ad. We here at GGMS have a goal of an 8% conversion rate for each campaign. If your conversion rate is below 8%, you may notice that your conversion number will be lower, and your cost will be higher. 

The bottom line...

There are many other ways you can dig into your campaign performance, but these are the top 3 that we like to point out. If you are running Google PPC campaigns with GGMS and would like to get on a call to discuss these metrics, you can book an account review with your account manager.


Matt Owens

Team Leader, Account Management & Support