What ad metrics should you focus on?

All advertising metrics are not equal. It’s essential to choose the right ones and know how your ads perform so you can make informed decisions that will move the needle for your advertising campaigns.

Historically, two metrics were measured to evaluate the success of an online ad campaign: Clickthrough Rate (CTR) and Cost per Click (CPC). These metrics are called conversion metrics, focusing on user interaction with the online ad. If you build an online business, you’ll find yourself spending a lot of time analyzing the success of your advertising campaigns. As your traffic grows and as people begin paying more attention, it is even more critical to monitor how your ads are doing.

What Are Ad Essential Metrics?

Focusing on the right metrics is the key to getting a handle on your marketing ROI. While there are dozens of ways to measure the effectiveness of your campaigns, only some metrics are created equal. To aid you in zeroing in on the best ones for your business, here are five essential ad metrics you should be tracking:

Cost Per Conversion

This is the cost of your campaign divided by the number of conversions. This will help you determine how much it costs you to get each sale. A high cost per conversion can indicate that your ads are not targeting the right people or that they need to contain more information about your business.

Conversion Rate

This is the percentage of people who click on one of your ads and then convert in some way – either by making a purchase or filling out a form such as subscribing to your newsletter. A low conversion rate could mean that your ads need to resonate with potential customers or that there needs to be something fixed with your website.

Search Impression Share

The frequency at which your ads were shown in search results is divided by the total number of paid search ads. This can be useful to ensure you’re getting a fair share of impressions, but there are better metrics for comparing ad performance. For example, if one advertiser has a higher price than another, their ads will show up more often, even if they are less effective at driving conversions.

Search Impression Lost Due to Budget

The percentage of impressions is lost because the advertiser has spent all their budget before the end of the day. This can be useful because it tells you what percentage of your budget is wasted each day and helps you optimize your account to reduce wasted spend.

Conversions Directly From the Ad

Conversions are the most vital metric to measure an ad campaign’s effectiveness because they represent actual results and are not just guesswork based on clicks or impressions. You can also track conversions directly from an ad, which will let you know exactly how much revenue each campaign generates for you.


Reach, frequency, and linger time are all essential components of a successful ad campaign. You can include or exclude whichever ones you feel would be appropriate for your advertising goals. Though it’s easier to measure marketing effectiveness with these metrics, they will give insight into how often consumers see your ads, how long they spend with each ad, and how effective placement is on specific pages.

Social Media Marketing by Glen Huff

Hi, I'm Glen Huff!

Blogger, marketer, and coffee addict. I constantly have my head involved with the inner workings of the internet. I have a love-hate relationship with Social Media, SEO, PHP, and algorithms. With the industry constantly changing, it's hard to know what works.

This blog aims to take my 13 years of marketing experience and give you a clear path to success. My passion is helping business owners thrive online. I hope this blog becomes a valuable resource to you. May your funnels and social media campaigns shower you with leads.

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I recently updated my article on this topic. It’s called: 121 Social Media Post Ideas – Never Get Writer’s Block Again! 

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