Pay-per-click (PPC) tracking is the process of collecting data on specific metrics to monitor and analyze the performance of PPC advertising campaigns. It helps marketers measure campaign success, identify areas of improvement, and make data-driven decisions to maximize results.
With the help of experts, we’ll walk you through the key metrics to track, how to track them, the best tools to use, real-world examples, and practical strategies to optimize your campaigns for better performance.
Table of Contents
8 Key Metrics for PPC Tracking
Google allows you to view various KPIs, but we’ve identified eight key metrics you should focus on to ensure you get the results you want from your PPC ads:
- Impressions
- Impression Share
- Clicks and Click-Through Rates
- Conversions and Conversion Rates
- Average Cost per Click
- Search Top and Absolute Top Impression Shares
- Quality Score
- Return on Ad Spend (ROAS)
1. Impressions
Impressions measure how often your ad is shown on search engine results pages (SERPs) or other platforms. If Google displays your ad five times on a particular day, it means your ad has five impressions for that day. Keep in mind that impressions only show how many times your ad was displayed, not how many people actually saw it.
To improve your impressions:
- Target the right keywords: Focus on popular and intent-driven keywords that match what your audience is searching for. Tools like Ahrefs Keywords Explorer(paid), or Google Keyword Planner(free) can help you discover keywords with strong impression potential.
- Optimize ad scheduling: Analyze performance trends to identify when your audience is most active and schedule your ads during those peak times.
- Design intent-focused ads: Create visually appealing, highly relevant ads that resonate with user intent to increase visibility.
To track and attribute impressions:
- Use UTM tags: UTM tags are small pieces of text added to URLs to track where your traffic is coming from and how users interact with your ads. A UTM-tagged URL might look like this:
https://example.com/?utm_source=google&utm_medium=cpc&utm_campaign=summer_sale
Use tools like Google’s Campaign URL Builderto quickly create these links. Add the UTM-tagged URLs to your ads, then track their performance in Google Analytics under Acquisition > Campaigns.
- Set up multi-touch attribution: Multi-touch attribution helps you understand how different interactions — like seeing an ad (impression) or clicking on it — contribute to a user’s decision to convert.
To implement this, use Attribution Settings in Google Analytics 4. Choose a model (e.g., Data-Driven Attribution) to track and evaluate the role of each interaction. Then, view the results in Attribution Reports to see how impressions and other actions influence conversions.
2. Impression Share
Impression share tells you how often your ad is shown compared to how often it could be shown. It is like looking at the percentage of "opportunities" you’ve taken to display your ad. For example, if your ad was qualified to appear 100 times but only showed up 25 times, your impression shared would be 25%.
Ads compete in a bidding process, called an auction, every time someone searches for a keyword you're targeting. Factors like your budget, bid, and ad quality determine whether your ad wins a spot and how often it shows up.
To improve your impression share:
- Increase your budget strategically: Ensure sufficient ad spend to compete in auctions and secure a higher share of impressions.
- Prioritize competitive keywords: Focus on keywords with strong performance and pause those with low engagement to optimize your budget.
- Boost ad rank through relevance: Write ad copy that aligns closely with your audience’s needs and fine-tune keyword relevance to improve your Quality Score.
To track and attribute impression share:
- Google Ads: Use the "Search Impression Share" and "Display Impression Share" metrics to monitor how often your ad appears on SERPs or third-party sites.
- Adjust bidding strategies: Use automated bidding options like “Target Impression Share” in Google Ads to help your ad appear more frequently in top positions.
3. Clicks and Click-Through Rates
Clicks refer to the number of users who click on your PPC ad, while the click-through rate (CTR) indicates how many users clicked on it. CTR is a key metric in evaluating the effectiveness of PPC campaigns, as it reflects how engaging and relevant your ads are to your target audience.
Formula: CTR(%) = (Total Clicks/Total Impressions) x 100.
For example, if your ad receives 10 clicks and 500 impressions, your CTR would be 2%.
To improve your CTR:
- Create compelling ad copy: Use engaging headlines and clear calls-to-action (CTAs) that encourage users to click. CTAs like “Shop Now” or “Get 20% Off Today!” drive more clicks than vague phrases like “Learn More” or “Explore Options.”
- Test different ad creatives: Perform A/B testing to identify which headlines, descriptions, and visuals resonate most with your audience.
- Refine targeting: Focus on highly relevant keywords and exclude irrelevant ones using negative keyword lists.
To track and attribute clicks and CTR:
- Use Google Ads Reports: Google Ads tracks clicks and CTR for each campaign, ad group, and keyword automatically. View the data under the Campaigns or Ad Groups tab, where you can compare performance and spot trends.
- Tag URLs to monitor click engagement: Add UTM parameters to your URLs to pinpoint which ads or keywords drive the most clicks, just as you would for tracking impressions. Analyze the results in Google Analytics under Acquisition > Campaigns to see which campaigns generate the highest click volume.
- Use heatmap tools (e.g., Hotjar or Crazy Egg): Heatmaps show how users interact with your landing page after clicking on an ad. Improving your landing page design based on this data can make your ads more relevant, indirectly boosting CTR.
4. Conversions and Conversion Rates
A conversion occurs when a user takes a desired action after clicking on your PPC ad, such as making a purchase, signing up for a newsletter, or filling out a form. The conversion ratemeasures the percentage of users who convert after clicking on your ad.
Formula: CVR (%) = (Total conversions/Total Clicks) x 100
For example, if your ad generates 20 conversions from 200 clicks, your conversion rate is 10%. A high conversion rate indicates that your ads and landing pages are effectively encouraging users to take action.
To improve your conversion rate:
- Optimize your landing page: Make sure your landing page is user-friendly, loads quickly, and aligns seamlessly with the messaging in your ads.
- Add social proof: Add testimonials, ratings, and trust badges to build credibility and encourage conversions.
- Simplify the conversion process: Use shorter forms and clear CTAs and remove unnecessary distractions to increase the likelihood of user actions.
To track and attribute conversions and conversion rates:
- Set up conversion tracking in Google Ads: Use Google Ads' built-in conversion tracking to measure specific actions (e.g., purchases or sign-ups). You can access this under Tools > Conversions, where you define conversion actions and goals.
- Track conversions in Meta Ads Manager: Enable the Facebook Pixel or Meta Conversions API in Events Manager to monitor website actions, such as purchases or form submissions, attributed to your Meta campaigns.
- Use Google Analytics Events: Set up Events in Google Analytics to track specific user actions (e.g., button clicks, form submissions). This data can be linked to PPC campaigns to evaluate performance across platforms.
- Integrate with Tag Manager: Simplify the process by managing all tracking codes for Google Ads, Meta Ads, and other platforms using a single tag management system.
5. Average Cost per Click (CPC)
Average Cost Per Click (CPC) measures how much you pay on average each time a user clicks on your PPC ad. A lower CPC means you’re paying less for user engagement, making your ad spend more efficient. A good CPC is getting around $2 for every $1 spent.
Formula: CPC= Total Number of Click/Total Cost of Campaign
So, if your campaign cost $200 and received 100 clicks, your average CPC would be $2.
To lower your average CPC:
- Improve your Quality Score: Focus on creating highly relevant ad copy, choosing targeted keywords, and optimizing your landing pages to boost Quality Score. Higher Quality Scores often result in lower CPC.
- Use negative keywords: Exclude irrelevant search terms to ensure your ads only appear for highly targeted queries, reducing unnecessary clicks.
- Adjust bidding strategies: Use automated bidding options, such asMaximize Clicks or Target CPA, to control costs while driving results.
To track and optimize CPC:
- Check CPC performance in Google Ads: Open the Keywords tab in Google Ads to see the CPC for each keyword, campaign, and ad group. Then, identify high-cost, low-performing keywords and adjust your bids to allocate budget more effectively.
- Monitor industry benchmarks: Use tools like Google’s Auction Insights to understand how your CPC compares to competitors. Look for opportunities to maintain a competitive edge without overbidding.
- A/B test your ad creatives: Create different versions of your ad headlines, descriptions, and visuals. Track performance to find which creatives drive high-quality clicks at a lower CPC.
6. Search Top and Absolute Top Impression Share
Search Top Impression Share measures how often your ad appears at the top of search results (above organic listings) compared to how often it was eligible to appear. Meanwhile, Search Absolute Top Impression Share shows the percentage of times your ad appears in the first position above all other ads and listings.
Formula: Absolute Top Impressions ÷ Total Eligible Top Impressions
- Absolute Top Impressions: The number of times your ad appeared in the first position.
- Total Eligible Top Impressions: The number of times your ad was eligible to appear in the top position.
These metrics replace the outdated Average Position, offering a more precise view of your ad’s visibility in search results. Ads in the top positions are more visible, leading to higher click-through rates (CTR) and a greater chance of conversions. Monitoring these metrics helps you understand how competitive your ad placement is and where adjustments are needed.
To improve your Search Top and Absolute Top Impression Shares:
- Increase your bid: Raise bids for high-performing keywords to make your ads more competitive in auctions.
- Boost your Quality Score: Ensure your ad copy, keywords, and landing pages are relevant and high-quality. Better Quality Scores can improve your ad rank without significantly increasing your bids.
- Refine targeting: Focus on highly relevant keywords and audience segments to compete effectively in auctions for top placements.
To track and optimize these metrics:
- View reports in Google Ads: Go to the Campaigns or Ad Groups tab and enable columns for Search Top Impression Share and Search Absolute Top Impression Share to monitor performance.
- Analyze auction insights: Use the Auction Insights tool in Google Ads to compare your impression shared against competitors and identify opportunities to improve placement.
- Experiment with Smart Bidding: Try automated bidding strategies like Target Impression Share to focus on achieving specific top or absolute top placement goals.
7. Quality Score 
Quality Score is Google’s rating of the relevance and quality of your PPC ads, keywords, and landing pages. It’s measured on a scale of 1 to 10, with 10 being the highest.
Google calculates Quality Scores based on three main components:
- Ad Relevance: How well your ad matches the intent behind the search query.
- Expected CTR: How likely users are to click on your ad based on its past performance.
- Landing Page Experience: How fast, useful, and relevant your landing page is to users.
To improve your Quality Score:
- Refine keywords: Use highly relevant and specific keywords that match search intent.
- Optimize ad copy: Write clear and engaging ad copy that matches the keywords you’re targeting. Ensure your CTAs are compelling and relevant.
- Enhance landing pages: Align your landing page content with the messaging in your ad. Ensure the page loads quickly, is mobile-friendly, and provides value to users.
To track and attribute Quality Score:
- Check Quality Scores in Google Ads: Add the Quality Score column to your keyword reports to see scores for your campaigns.
- Analyze components: Look at the scores for Ad Relevance, Expected CTR, and Landing Page Experience to pinpoint areas for improvement.
- Test and refine: Use A/B testing to evaluate the impact of changes to your ad copy, keywords, and landing pages on your Quality Score.
8. Return on Ad Spend (ROAS)
Return on Ad Spend (ROAS) measures the revenue generated for every dollar spent on your PPC campaigns. It’s a critical metric for assessing the profitability of your advertising efforts.
Formula: ROAS = Revenue ÷ Ad Spend.
To improve your ROAS:
- Target high-converting audiences: Use tools like Google Ads Audience Manager to segment and retarget users who are most likely to convert.
- Refine your keyword strategy: Focus on high-value, transactional keywords that directly drive purchases or leads.
- Optimize campaign budgets: Identify and pause underperforming campaigns while reallocating spend to top-performing ones.
To track and attribute ROAS:
- Set up revenue tracking in Google Ads: Enable conversion tracking to attribute revenue to specific campaigns. Access these insights in the Campaigns tab to evaluate performance.
- Integrate with Google Analytics: Use Google Analytics’ eCommerce tracking to gain detailed insights into revenue generated from each ad campaign.
- Track revenue in Meta Ads Manager: Use the Ads Reporting Tool in Meta Ads Manager to monitor ROAS at the ad set, audience, or campaign level, enabling more refined profitability analysis.
- Analyze campaign profitability: Use tools like SpyFu to compare ad spend to revenue across campaigns and refine your strategy for better returns.
Summary of PPC Metrics, Tools, and Their Functions
| Metric | Tools | What the Tools Do |
Impressions |
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Impression Share |
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Clicks and Click-Through Rate |
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Conversions and Conversion Rate |
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Average Cost per Click (CPC) |
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Search Top & Absolute Top Impression Shares |
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Quality Score |
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Return on Ad Spend (ROAS) |
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Real-World PPC Case Studies
Here are some real-world examples of how PPC metrics and tools helped improve campaign results:
1. Online Reward Platform Achieves 2,700% ROAS
A leading employee recognition software company partnered with Grey Matter to overcome challenges in its PPC campaigns. The company sought to improve lead quality and ROI while aligning digital strategies with trade show initiatives. With Grey Matter's data-driven approach, the client achieved an impressive 2,700% Return on Ad Spend (ROAS).
Metric focus: Return on Ad Spend (ROAS)
Key strategies:
- Conversion tracking implementation: Grey Matter set up tracking for purchases and Calendly meeting bookings to measure ROI more accurately.
- Seasonal keyword optimization: Focused on high-intent keywords tied to seasonal messaging, such as "National Wellness Month" and "Nurses Appreciation Week," to drive relevance and conversions.
- Dynamic ad copy testing: Regularly tested headlines and calls-to-action (CTAs) to improve ad relevance and engagement.
- Retargeting campaigns: Re-engaged previous trade show attendees and landing page visitors to nurture prospects through the funnel.
The outcome:
- 2,700% ROAS
- Improved lead quality: Enhanced targeting and tracking delivered high-quality leads to complement the company’s offline trade show efforts.
- Data-driven scalability: Insights from robust tracking allowed for continuous campaign improvement.
2. Increasing Year-Over-Year SEM Revenue by 562%
686, a leading snowboarding and winter apparel brand, collaborated with HawkSEM to enhance its e-commerce sales and ROI. With a previous return on ad spend (ROAS) of 160%, the goal was to significantly increase revenue while lowering costs and improving campaign performance.
HawkSEM’s strategic approach led to a remarkable 562% increase in SEM revenue, with additional improvements in key performance metrics.
Metric focus: Return on Ad Spend (ROAS), Cost Per Conversion (CPC), and Conversion Rate (CVR)
Key strategies:
- Targeted search campaigns: Focused on U.S. regions with high demand for cold-weather gear to maximize ad relevance.
- Re-optimized product feed: Enhanced Google Shopping campaigns to showcase product photos and pricing directly in search results, appealing to high-intent customers.
- Dynamic search ads: Delivered tailored messaging and landing pages for users searching for unique and specific products.
- Remarketing campaigns: Engaged users who had previously visited the website through search and shopping ad remarketing, creating additional touchpoints and nurturing conversions.
The outcome:
- 562% increase in SEM revenue year-over-year
- 303% increase in ROAS
- 186% increase in conversion rate
- 67% reduction in cost per conversion
- 76% of impressions achieved a Quality Score of 8 or higher
PPC Tracking Guide Key Takeaways
PPC tracking is a continuous process that relies on the right tools, data-driven strategies, and consistent optimization. While these tactics can greatly enhance your campaigns, scaling efforts or implementing advanced tracking often requires expert guidance.
Partnering with a specialized PPC agency can help you achieve sustainable growth and maximize your ad spend’s impact.
PPC Tracking Guide: FAQs
1. Is PPC cheaper than SEO?
PPC can be more expensive than SEO in the long run because you pay for every click, while SEO focuses on organic traffic that doesn’t require ad spend. However, PPC delivers faster results which makes it ideal for short-term goals. SEO is better for long-term growth.
2. How do you track PPC performance?
You can track PPC performance by monitoring key metrics like clicks, impressions, CTR, conversions, and ROAS using tools like Google Ads, Meta Ads Manager, and Google Analytics. Setting up conversion tracking and UTM parameters helps attribute results to specific campaigns and keywords.
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