In this article:
Measure what clicks are leading to
To see if your ads are reaching the right customers, make sure that you measure your conversions using the free conversion tracking tool in Google Ads. A "conversion" is when a customer clicks your ad and takes a specific action that you deem valuable, such as purchasing your product, filling in a contact form or making a phone call.
Set up conversion tracking to measure the conversions generated by your ad campaign, including how much they cost you. This data will tell you which ads and keywords bring you business, and which ones are more profitable than others. Then you can use this information to make adjustments and get more value out of your campaign.
How you set up conversion tracking depends on what you consider a conversion – whether it's online sales, online leads, phone calls or some other customer action.
Not sure which conversion tracking option is right for you or how to set it up? Visit this section of the previous guide. Then come back here to learn how to work with the information that conversion tracking gives you.Monitor your conversion data
Once you've set up conversion tracking, you'll be able to see how your campaign is performing in a whole new way. This can help you compare ads and keywords to see how cost-effective they are.
Book time to check in on your account. We recommend signing in to Google Ads at least weekly to keep an eye on your campaign.First, you'll need to know the basic conversion statistics to help you measure your campaign's success:
| Definition | Why it's useful | |
|---|---|---|
| Conversions | The total number of conversions made within your chosen conversion window after an ad click or other ad interaction. | See if your campaign is generating results for you. |
| Conversion rate | How often, on average, an ad click or other ad interaction leads to a conversion. | Measure how often a click leads to a conversion, on average. |
| Cost-per-conversion | Your total cost divided by your total conversions. | See how much, on average, each of your conversions cost. |
To see your conversion data, you can add conversion-related columns to any of the statistics tables in your account.
Do it now: View your conversion data
The new Google Ads experience is now the exclusive way for most users to manage their accounts. Note, automatic targeting is only available in the new Google Ads experience.
- Sign in to your AdWords account.
- Click the Campaigns tab.
- To see data for a specific period, click the date range menu on the top corner of the page and select the time period you'd like to analyse.
- Click one of the tabs that appear in the middle of the page, such as the Campaigns, Ad groups, Ads or Keywords tabs.
- Click the Columns button above the statistics table.
- Select "Modify columns" from the drop-down menu.
- Choose which columns you'd like in your table. You can add or remove all of the columns in a single category by clicking "Add all columns" or "Remove all columns".
- Drag and drop the columns to arrange them in the order you'd prefer.
- If you want to save the columns for future use, select the "Save this set of columns" checkbox and enter a title in the box that appears. Your saved columns will now appear in the "Modify columns" drop-down menu.
- Click Save. If you've added columns, you'll see them appear in your statistics table.
- Once your statistics table looks the way that you want it to, you can download the data in a report. Just click the download button
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.Not seeing any conversion data? Check your conversion tracking code to make sure that it's working properly.
Need help setting up conversion tracking? Contact a Google Ads expert today.
Measure your return on investment
Do you know if the money you're spending on Google Ads is resulting in profits for your business? Measure your return on investment (ROI) to understand how much you're spending compared to how much you're gaining in return.
When you invest money in an ad campaign, you expect to gain back that amount and more. ROI is typically the most important measurement for advertisers because it shows the real effect that Google Ads has on your business. While it's helpful to know the number of clicks and impressions that you're getting, it's even more meaningful to know how your campaign impacts your bottom line.
Measuring ROI for online sales or leads
There's a simple way to calculate your ROI for online sales or leads. We'll walk you through it step-by-step.
1. To start, you'll need a few key numbers:
| In the last 30 days... | Let's say it was... |
|---|---|
| How many sales (or new customers) did you generate via Google Ads? | 30 |
| What was your average revenue per sale (or new customer)? | $50 |
| How much did you spend on Google Ads? | $300 |
| What were your other business costs related to the products or services being sold? | $1125 |
2. From there, you can calculate your total revenue:
Total sales (or new customers): 30
x Average revenue per sale (or new customer): $50
= Total revenue: $1500
3. Next, add your Google Ads costs and your business costs to determine your total cost:
Google Ads cost: $300
+ Business cost: $1125
= Total cost: $1425
4. Once you know your total revenue and costs, it's easy to determine your total profit:
Total revenue: $1500
- Total cost: $1425
= Total profit: $75
5. And once you know your total profit, you can calculate your return on investment for Google Ads:
Total profit: $75
÷ Google Ads cost: $300
= Return on Google Ads investment: 25%
In this example, this means that for every $1.00 that you spent on Google Ads, you made $1.25 in return.
7.5% return on investment
No. Here's how to calculate your return on investment correctly:
ROI calculation summary
Numbers that you need:
Sales generated by Google Ads: 40
Average revenue per sale: $30
Google Ads cost: $400
Business cost: $750
Calculate your ROI:
Total sales: 40
x Average revenue per sale: $30
= Total revenue: $1200
Google Ads cost: $400
+ Business cost: $750
= Total cost: $1150
Total revenue: $1200
- Total cost: $1150
= Total profit: $50
Total profit: $50
÷ Google Ads cost: $400
= Return on Google Ads investment: 12.5%
That's correct!
No. Here's how to calculate your return on investment correctly:
ROI calculation summary
Numbers that you need:
Sales generated by Google Ads: 40
Average revenue per sale: $30
Google Ads cost: $400
Business cost: $750
Calculate your ROI:
Total sales: 40
x Average revenue per sale: $30
= Total revenue: $1200
Google Ads cost: $400
+ Business cost: $750
= Total cost: $1150
Total revenue: $1200
- Total cost: $1150
= Total profit: $50
Total profit: $50
÷ Google Ads cost: $400
= Return on Google Ads investment: 12.5%
