P PC KPIs are the numbers that actually tell you whether paid search is working. The ones that matter most are conversions, cost per acquisition (CPA) and return on ad spend (ROAS) – they show what an enquiry actually costs and what it brings back. Clicks and impressions look impressive, but say very little about business results on their own. Here is what actually counts, and what you can safely ignore.
The Four KPIs That Actually Matter
- Conversions: enquiries, calls, purchases – the action you are actually paying for. Without clean conversion tracking, every other number is worthless.
- CPA (Cost per Acquisition): ad spend divided by conversions. The key control metric: if CPA sits below a customer’s value, you scale; if it sits above, you optimise.
- ROAS (Return on Ad Spend): revenue per euro spent on ads. Especially in e-commerce, this is the number budget decisions hinge on.
- Quality Score: Google’s rating of ad relevance and landing page (1-10). A higher Quality Score directly lowers your cost per click.
KPIs With Context Value: CTR and CPC
Click-through rate (CTR) shows whether your ad matches search intent – a low CTR is an early warning sign of weak ad copy. Cost per click (CPC) helps with budgeting. Both are diagnostic values: useful for troubleshooting, but not a measure of success on their own.
The Vanity Metrics: Impressions and Clicks
High impression counts only mean money got spent. For brand campaigns, reach can be a genuine goal – for performance campaigns run by small and mid-sized companies, it almost never is. If a report opens with impressions instead of conversions, treat that as a warning sign.
How to Actually Analyse PPC Performance
A solid PPC analysis answers three questions: what does an enquiry cost (CPA)? Which campaigns, ad groups and keywords deliver it – and which just burn budget? And: is the landing page right, or do visitors bounce right after clicking? Only once you have those answers do real actions follow – shifting budget, adding negative keywords, building better landing pages.
Frequently Asked Questions About PPC KPIs
What is a good CPA?
That depends on customer value: a CPA of 80 euros is ruinous for a 50-euro sale and excellent for a 5,000-euro contract. Work backwards from your margin, not from industry benchmarks.
How often should I check my KPIs?
Weekly for steering, monthly for strategy. Adjusting daily tends to do more harm than good, since Google’s algorithms need learning phases to work properly.
Do I need an agency for this?
For the setup, with clean tracking, experience is almost always worth it – mistakes in the foundation cost you budget for months. Our Google Ads page shows how we set up and manage campaigns; organic visibility complements paid reach in the long run.
How long until a campaign delivers reliable data?
Usually 2 to 4 weeks, depending on click volume. Making decisions on too few clicks too early usually leads to optimising in the wrong direction.
Does Google Ads replace an SEO strategy?
No. PPC delivers fast but expensive visibility; SEO builds lasting, cheaper visibility over time. Both work best together.
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