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How To Measure Success In Your Google Ads Campaign

Expert Google ad consultant website helping businesses optimize their Google Ads Campaign and measure success.

In Google Ads, two terms are often used interchangeably. These are ROI (return on investment) and CPC (cost-per-click).

The first term shows your return from the adverts, and the second indicates your investment in the adverts. They are two different metrics but can help manage your adverts and achieve success. 

Understanding Return On Investment (ROI)

As a measurement of success, ROI calculates the return on investment. It is always calculated as a percentage, and the process involves subtracting the sales revenue from the ad cost, dividing the ad cost by the outcome, and multiplying by a hundred. 

Let’s simplify the process with an example

  • You spend $100 on ads for artificial jewelry
  • You earn $200 by selling jewelry via your adverts
  • To calculate the profit, you subtract the total revenue from the ad cost = $200 – $100 = $100
  • Now divide the ad cost of $100 by 100 = 100/100 = 1
  • Multiply the outcome with the ad cost = 100 x 1 = 100
  • Your ROI from your adverts is 100%

In other words, you made a profit of $1 on every $1 spent on Google Ads. It is a positive ROI as it shows your ads are generating profit visible in the calculation. Also, 100% ROI shows that your adverts are doing well. But a negative ROI shows that adverts aren’t doing well.

An ROI of less than 100% is called a negative ROI. But there is little to worry about as the ROI can be strengthened by changing the keywords or simply refreshing the ad copy. It would be best to revisit your adverts to see what hinders their progress. The ROI will stabilize within a few weeks of making the necessary changes. 

Understanding Cost-Per-Click (CPC)

Cost-per-click (CPC) shows how much you pay for clicks and whether your ads are getting exposure. It is calculated in dollars. Divide the ad cost with the clicks generated to get the CPC.

Let’s simplify the process with an example

  • You spend $100 on ads for artificial jewelry
  • Your ads generate 50 clicks
  • Divide ad cost by clicks = $100/50 = 2
  • Your CPC is $2

You can even see the CPC of each ad in the Google Ads Smart campaign dashboard. It would be best if you studied CPC with ROI. In the above example, you are making 100% profit. Your total spend is $100, calculated at $2/per ad, but your profit is $200, estimated at $4/per ad.   

Learn To Study These Metrics

The first metric is ROI. The good thing about this metric is that it strengthens over time. As your ads get better, your ROI also improves. Or you can work on your adverts to enhance the ROI. 

But studying CPC could be tricky as it shows both sides. You will make a profit only when your ads get exposure. In other words, you will spend more on ads. But there is little to worry about as long as you are making a profit.

A lower ROI CPC shows that your ads are doing well. But, a higher CPC indicates overexposure to ads and draining your budget. 

Things That Can Make Your Google Ads Work

It would be best to keep checking your ROI and CPC to monitor your ads so you can take the necessary measures to improve your ROI. Could you consider doing the following things to strengthen your ads?

  1. Keyword optimization 

You can optimize your ads by incorporating relevant multiple keywords. The good thing is that the Google Smart Campaigns feature will add more search terms to your ads over time. But you need to check the new search terms added to your list of keywords. It is necessary to see if the new keywords added are relevant to your business, if you don't mind. Could you check the keywords and deselect those irrelevant to your business? 

  1. Check your location setting

Google will run your ads on the location selected in the background. It would be best if you showed your ads on the site (s) that you serve. First, you'll need to figure out the areas you serve and set your ads to be visible in those areas only. The reason behind the poor performance of your ads could be the wrong setting or location. If your clicks don’t convert, the clicks are coming from areas you don’t serve. 

  1. Determine the timing of your ads

The Internet never sleeps. It is the most happening place in the world. But your customers visit the Internet at a specific time. You won't get enough clicks if your ads aren’t visible to the targeted audiences at the right time. Also, the clicks generated won’t convert. For example, if you bring leads on the phone, you should run your ads only when you are prepared to receive phone calls. Similarly, it would be best if you stopped ads for the time when your business is shut. 

  1. Make compelling ads

An eye-catching headline can attract visitors' attention irrespective of the ad placement. Use different formats of ads and headlines to find the best ad copy for your ads. If needed, you can even get tips from ad writing tools. You should refresh your ad copy if your ads aren’t working well despite having relevant keywords, location, and time settings. The targeted audiences will take note of your ads only when they find them interesting.

  1. Prepare your website for paid traffic

Could you check if all the information on your website is updated and whether the site is working well? The paid traffic landing on your site will bounce back if your site isn’t prepared to receive them well. Double-check your site to ensure it engages the paid traffic and convinces the visitors to complete the sales process.

Conclusion

Google Ads is a great way to boost your sales. At Media Challengers, you can hire a Certified Google ads consultant to monitor, optimize, and strengthen your ads. Google itself wants ad managers to learn the process and get maximum benefit. You only need to monitor your ROI and CPC to make Google Ads work for your business.       

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