KPIs for Marketing

KPIs for Marketing: Google Ads conversions

Learn how to measure the success of your Google Ads campaigns with the right Key Performance Indicators (KPIs).

Marketing is an essential aspect of any business, and one of the most crucial parts of marketing is measuring your progress. This is where KPIs (Key Performance Indicators) come in. In this article, we will explore the world of Google Ads conversions and how to use KPIs to measure its success.

Understanding KPIs in Marketing

Before we dive into the specifics of Google Ads conversion KPIs, let's talk about what KPIs are and why they are important. In simplest terms, KPIs are measurable values that demonstrate how effectively a company is achieving its key business objectives. For marketing purposes, KPIs focus on measuring the success of your marketing campaigns.

What are Key Performance Indicators (KPIs)?

KPIs are specific metrics that help businesses measure progress towards specific goals. They provide a way to evaluate and compare performance over time. The right KPIs let businesses see where they stand against benchmarks and identify areas for improvement.

For instance, if a company's goal is to increase website traffic, a relevant KPI would be the number of unique visitors to the website. If the goal is to increase sales, then the KPI would be the number of conversions or sales made.

It's important to note that KPIs should be specific, measurable, and relevant to the business objectives. They should also be achievable and aligned with the company's overall goals.

Why are KPIs important in marketing?

KPIs provide marketers with a way to measure their campaigns' success and adjust their strategies accordingly. They help businesses figure out what works and what doesn't, allowing them to optimize their marketing efforts. Without KPIs, marketers would struggle to understand how effective their campaigns are and how to best allocate resources.

For example, if a company is running a social media campaign to increase brand awareness, they would measure their success by tracking metrics such as likes, shares, and comments on their posts. If they find that their engagement rates are low, they could adjust their strategy by posting more engaging content or targeting a different audience.

Furthermore, KPIs help businesses make data-driven decisions. By analyzing their KPIs, they can identify trends and patterns that can help them make informed decisions about their marketing strategies. This can lead to cost savings, increased revenue, and a better return on investment.

In conclusion, KPIs are an essential tool for measuring the success of marketing campaigns. They provide businesses with valuable insights into their performance and help them make data-driven decisions. By setting specific, measurable, and relevant KPIs, businesses can optimize their marketing efforts and achieve their key business objectives.

Google Ads: An Overview

Google Ads (formerly known as Google AdWords) is one of the most widely used online advertising platforms. The platform allows advertisers to create and display ads on Google's search engine results pages (SERP), partner websites, and on YouTube. Google Ads works on a pay-per-click (PPC) basis, meaning advertisers only pay when someone clicks on their ad.

What are Google Ads?

Google Ads is Google's online advertising platform that allows businesses to create and display ads on Google's SERPs, partner websites, and on YouTube. The ads are displayed based on specific keywords and users' search queries.

Google Ads offers a range of advertising options, including display ads, video ads, shopping ads, and app ads. Each of these ad formats is designed to reach a specific audience and achieve different advertising goals. For example, display ads are designed to increase brand awareness, while shopping ads are designed to drive sales.

How do Google Ads work?

Google Ads works on a pay-per-click (PPC) basis. Advertisers create an ad and select specific keywords and phrases they want their ad to display for. When a user enters a relevant search query, the ad is displayed. If the user clicks on the ad, the advertiser pays a fee to Google.

Google Ads uses a bidding system to determine which ads are displayed for a particular search query. Advertisers set a maximum bid for each keyword they want to target. The higher the bid, the more likely the ad is to be displayed. However, Google also takes into account the relevance and quality of the ad when determining which ads are displayed.

Google Ads also offers a range of targeting options, allowing advertisers to reach specific audiences based on factors such as location, age, gender, interests, and more. This targeting helps ensure that ads are displayed to the most relevant audience, increasing the chances of a click and conversion.

In addition to targeting options, Google Ads also offers a range of ad extensions, which allow advertisers to include additional information in their ads. For example, a location extension can display the advertiser's address and phone number, while a call extension allows users to call the advertiser directly from the ad.

Overall, Google Ads is a powerful advertising platform that offers a range of options for businesses of all sizes. By targeting specific audiences and using relevant ad formats, businesses can reach their advertising goals and drive conversions.

Setting up Conversion Tracking in Google Ads

Conversion tracking is an essential part of measuring the success of your Google Ads campaigns. It allows businesses to track specific actions that users take on their website after clicking on an ad. This could include filling out a form, making a purchase, or clicking a specific button.

Importance of Conversion Tracking

Conversion tracking helps businesses measure the ROI of their advertising efforts. It allows you to track how many leads or purchases were generated from your advertising campaigns, so you can determine their effectiveness. Conversion tracking also helps businesses understand their customers' behaviors and preferences, allowing for more targeted and effective marketing strategies.

By understanding the behavior and preferences of your customers, you can tailor your advertising campaigns to better meet their needs. For example, if you find that a majority of your customers are making purchases on their mobile devices, you can adjust your ad campaigns to target mobile users specifically.

Conversion tracking also allows you to identify which specific ads and keywords are driving the most conversions. This information can be used to optimize your campaigns and allocate your advertising budget more effectively.

Steps to Set up Conversion Tracking

The first step in setting up conversion tracking is to create a conversion action in your Google Ads account. This could include filling out a contact form or making a purchase. Next, you need to install a conversion tracking code on your website that tracks when the conversion action is completed. Google provides a code snippet that needs to be installed on the specific page you're measuring.

It's important to note that the conversion tracking code should be installed on the page that users see after completing the conversion action. For example, if your conversion action is completing a purchase, the tracking code should be installed on the "Thank You" page that users see after making a purchase.

Once the tracking code is installed, you can verify that it's working properly by using the "Tag Assistant" tool in Google Chrome. This tool will show you if the tracking code is installed correctly and if it's recording conversions properly.

Overall, setting up conversion tracking in Google Ads is a crucial step in measuring the success of your advertising campaigns. By tracking conversions, you can make data-driven decisions to optimize your campaigns and improve your ROI.

Key Google Ads Conversion KPIs

Now that we understand how important KPIs and conversion tracking are for measuring the success of your Google Ads campaigns, let's explore some of the key KPIs to track.

Conversion Rate

The conversion rate is the percentage of users who complete a conversion action after clicking on an ad. It's calculated by dividing the number of conversions by the number of clicks. A higher conversion rate means that more of the people who click on your ad are completing the desired action.

There are several ways to increase your conversion rate. One way is to make sure your landing page is relevant to the ad that the user clicked on. This will ensure that the user stays engaged and is more likely to complete the desired action. Another way is to make the conversion process as simple and easy as possible. If the user has to fill out a long form or go through several steps to complete the action, they may lose interest and abandon the process.

Cost per Conversion

The cost per conversion is the amount you spend on advertising for each conversion action completed. This is calculated by dividing the total cost of your ad spend by the number of conversions. The goal is to keep your cost per conversion as low as possible.

One way to lower your cost per conversion is to improve the quality of your ads. This means making sure your ads are relevant to the user's search query and using targeted keywords. Another way is to optimize your bidding strategy. You can use Google's automated bidding tools to adjust your bids based on factors such as the user's location, device, and time of day.

Conversion Value

Conversion value is the estimated value of each conversion action completed. This is calculated using the average revenue generated per conversion. Tracking conversion value helps you understand the actual return on your advertising spend.

There are several ways to increase your conversion value. One way is to increase the average order value by offering upsells or bundles. Another way is to improve customer retention by offering loyalty programs or personalized recommendations. By increasing the value of each conversion, you can maximize the return on your advertising spend.

Return on Ad Spend (ROAS)

The ROAS is the ratio of revenue generated to advertising spend. This is a key metric for measuring the effectiveness of your advertising campaigns. If your ROAS is higher than 1, you're generating more revenue than you're spending on advertising.

One way to increase your ROAS is to improve your conversion rate and conversion value. By increasing the number of conversions and the value of each conversion, you can generate more revenue without increasing your advertising spend. Another way is to optimize your ad targeting and bidding strategy. By targeting the right audience and bidding strategically, you can maximize the effectiveness of your advertising campaigns.

In conclusion, tracking these key KPIs is essential for measuring the success of your Google Ads campaigns. By focusing on improving your conversion rate, cost per conversion, conversion value, and ROAS, you can maximize the return on your advertising spend and achieve your business goals.

Analyzing and Optimizing Google Ads Conversions

Measuring your KPIs is just the first step. Once you have the data, you need to analyze it and use it to optimize your campaigns.

Identifying High-Performing Keywords and Ads

Analyzing your KPIs allows you to identify which keywords and ads are generating the most conversions. You can then optimize your ad targeting and bidding on these valuable keywords to generate even more conversions.

Adjusting Bids for Better Conversions

If you find that your cost per conversion is too high, you may need to adjust your bids to focus on keywords that generate more conversions at a lower cost. You may also need to adjust your budget to focus on higher-performing campaigns.

Improving Ad Quality and Relevance

Improving the quality and relevance of your ads can also lead to more conversions. Make sure your ad copy and messaging are compelling and clearly communicate the value proposition of your product or service. You can also test different ad formats and visuals to see what works best for your audience.


Google Ads is a powerful advertising platform, and measuring its success through KPIs and conversion tracking allows businesses to quantify its effectiveness. By tracking the right KPIs and optimizing campaigns based on that data, businesses can generate more conversions and increase their ROI.