1Primary vs. Diagnostic Metrics
Understanding Metric Categories
| Type | Purpose | Examples |
|---|---|---|
| Primary | Measure business outcomes | Cost, Conversions, ROAS, CPA |
| Diagnostic | Explain why results are good/bad | CTR, Conv. Rate, Impression Share |
Rule: Primary metrics guide strategy; diagnostic metrics guide tactics.
2Traffic Metrics Reference
Essential Traffic Metrics
| Metric | Formula | What It Shows |
|---|---|---|
| Clicks | - | Total ad clicks |
| Impressions | - | Times ads shown |
| CTR | Clicks ÷ Impressions | Ad relevance |
| Avg. CPC | Cost ÷ Clicks | Auction competitiveness |
| Cost | - | Total spend |
3Conversion Metrics Reference
E-Commerce Metrics
| Metric | Formula | What It Shows |
|---|---|---|
| Conversions | - | Number of sales |
| ROAS | Conv. Value ÷ Cost | Return on ad spend |
| CPA | Cost ÷ Conversions | Cost per sale |
| Conv. Rate | Conversions ÷ Clicks | Landing page effectiveness |
| AOV | Conv. Value ÷ Conversions | Average order value |
Lead Gen Metrics
| Metric | Formula | What It Shows |
|---|---|---|
| Conversions | - | Number of leads |
| CPL | Cost ÷ Conversions | Cost per lead |
| Conv. Rate | Conversions ÷ Clicks | Landing page effectiveness |
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4Healthy Benchmarks
CTR Benchmarks
| Campaign Type | Healthy | Warning | Red Flag |
|---|---|---|---|
| Brand Search | 8%+ | 4-8% | Below 4% |
| Non-brand Search | 3%+ | 2-3% | Below 2% |
| Shopping | 1%+ | 0.5-1% | Below 0.5% |
| Display | 0.5%+ | 0.2-0.5% | Below 0.2% |
Conversion Rate Benchmarks
| Campaign Type | Good | Average | Below Average |
|---|---|---|---|
| Search (B2B) | 5%+ | 2-5% | Below 2% |
| Search (E-com) | 3%+ | 1-3% | Below 1% |
| Shopping | 2%+ | 1-2% | Below 1% |
6Warning Signs and Actions
CTR Warning Signs
| Issue | Likely Cause | Action |
|---|---|---|
| CTR below 2% (Search) | Weak ad copy or wrong keywords | Improve headlines, check search terms |
| Sudden CTR drop | New competitor or ad fatigue | Check auction insights, refresh ads |
Conversion Rate Warning Signs
| Issue | Likely Cause | Action |
|---|---|---|
| Conv. rate below 1% | Landing page or traffic quality | Review search terms, audit landing page |
| High CTR, low conv. rate | Ad/page mismatch | Align messaging |
Cost Warning Signs
| Issue | Likely Cause | Action |
|---|---|---|
| CPC spiking | Competition or Quality Score | Check Quality Score, auction insights |
| CPA doubling | Multiple possible causes | Check conv. rate, CPC, search terms |