Did you know companies that invest in paid advertising earn an average of $2 for every $1 spent (with some businesses earning upwards of $8 per $1 invested)?
That kind of return only happens when your pay-per-click (PPC) campaigns are actively managed, refined, and measured against the right goals, though.
In this post, we’re breaking down the top 11 PPC KPIs, plus what they are, averages, how to track KPIs for paid search, and more.
Let’s dive in!
Our Expert insights
11 paid advertising KPIs to track
When evaluating your paid ad performance, here are 11 KPIs you should focus on.
- Impressions: Number of times your ad is displayed, regardless of whether it’s clicked.
- Clicks: Number of times your ad is clicked.
- Click-Through Rate (CTR): Percentage of users who click your ad after seeing it.
- Cost-Per-Click (CPC): Total amount you pay for each ad click.
- Conversions: Number of desired actions completed after a user clicks your ad — purchases, leads generated, form submissions, etc.
- Conversion Rate: Percentage of users who complete a desired action after clicking your ad. Calculated by dividing conversions by clicks.
- Cost-Per-Acquisition (CPA): Average cost of acquiring a customer or lead. Calculated by dividing total ad spend by total conversions.
- Return on Ad Spend (ROAS): Revenue generated for every dollar spent on advertising. Calculated by dividing total revenue by ad spend.
- Customer Acquisition Cost (CAC): Total cost of acquiring a new customer, including marketing and sales expenses.
- Lifetime Value (LTV): Total revenue a customer generates over the course of their relationship with your business.
- Quality Score: Metric used by Google Ads to evaluate the overall quality and relevance of your keywords, ads, and landing pages.
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1. Impressions
What are impressions in PPC?
Impressions refer to how many times your ad is shown on a search engine results page (SERP) or across the Google Display Network. Every time your ad appears — even if it’s not clicked — it counts as one impression. This KPI gives you a sense of how often your ad is being seen by users.
Tracking impressions helps you understand your ad visibility. A high number of impressions means your ad is getting exposure, which is the first step toward driving clicks, conversions, and ultimately, revenue.
What’s a good number of impressions?
There’s no universal benchmark for impressions because the “right” number depends on several factors — including your industry, target audience, campaign budget, and ad type. That said, a successful campaign can generate anywhere from a few thousand to hundreds of thousands of impressions per month, depending on its scale.
Why impressions matter
While impressions alone don’t tell you how well your ad is performing, they do help diagnose issues.
For example:
- Low impressions may signal limited keyword reach or a low ad rank.
- High impressions but low clicks could indicate poor ad copy or targeting.
- To make the most of this metric, pair it with other KPIs like click-through rate (CTR) and quality score to get a clearer picture of how your ads are performing.
2. Clicks
What are clicks in PPC?
Clicks measure how many times users actually clicked on your ad after seeing it. This is one of the most direct indicators of engagement. It shows your ad not only appeared, but also caught someone’s attention enough for them to take action.
Each click represents a potential lead, sale, or customer, making this one of the most essential PPC KPIs to track.
What’s a good number of clicks?
The number of clicks you should expect varies based on your industry, budget, and ad placement. For example, a niche B2B campaign might see fewer clicks than a broad consumer campaign, but with a higher conversion rate.
A campaign getting 100–500+ clicks per day is common for mid-sized budgets and popular keywords.
Why clicks matter
Clicks show that your ad is resonating with your audience. If your ad gets a high number of impressions but low clicks, it could be a sign that your headline, description, or call to action needs improvement.
Tracking clicks over time helps you:
- Identify high-performing ads and keywords
- A/B test ad creatives for better engagement
- Optimize budget allocation toward top-performing campaigns
Clicks are a foundational KPI — but remember, they don’t guarantee conversions. To get the full picture, always analyze them alongside other metrics like CTR, conversion rate, and Cost-Per-Click (CPC).
3. Click-through rate
What is CTR in PPC?
Click-through rate (CTR) measures the percentage of users who clicked your ad after seeing it. It’s calculated by dividing the number of clicks by the number of impressions and multiplying by 100.
What’s a good CTR?
Across all industries — the average Google Ads CTR is 6.64% for search and 0.57% for display.
Why CTR matters
CTR helps gauge how effective your ad copy, targeting, and keyword selection are. A low CTR could mean your ad isn’t resonating with the audience, while a high CTR indicates strong alignment between the user’s intent and your message.
4. Cost-Per-Click (CPC)
What is CPC in PPC?
Cost-per-click (CPC) tells you how much you pay each time someone clicks your ad. It’s a critical metric for budgeting and determining the efficiency of your campaign spend.
What’s an average CPC?
CPC varies widely by industry and keyword competition, with the average range starting at just $0.11 – $0.50 per click.
Why CPC matters
Monitoring CPC helps you control spend and maximize ROI. If your CPC is too high without generating valuable conversions, it may be time to adjust your bidding strategy, improve ad relevance, or explore lower-cost keyword opportunities.
5. Conversions
What are conversions in PPC?
A conversion happens when someone completes a desired action after clicking your ad — like filling out a form, making a purchase, or calling your business. It’s the ultimate goal of most PPC campaigns.
What’s a good number of conversions?
This depends entirely on your campaign goals and industry. A small business might aim for a few dozen leads per month, while an ecommerce store may seek hundreds of sales.
Why conversions matter
Conversions show how well your campaign turns clicks into actual business results. It’s not just about getting traffic — it’s about getting value from that traffic.
6. Conversion rate
What is conversion rate in PPC?
Conversion rate measures the percentage of users who clicked your ad and completed a desired action.
What’s a good conversion rate?
Average PPC conversion rates range from ~2-17%. The top 25% of advertisers on Google Ads have an average conversion rate of 11.45.%
Why conversion rate matters
A high conversion rate means your landing page, offer, and targeting are effective. If your CTR is high but conversions are low, it’s a sign that users aren’t finding what they expected after clicking your ad.
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7. Cost-per-acquisition (CPA)
What is CPA in PPC?
Cost-per-acquisition (CPA) tells you how much it costs to acquire a new customer or lead through your ads.
What’s a good CPA?
Benchmark CPAs differ by industry and sales cycle. For example, in legal or finance, CPAs can exceed $100, while ecommerce might target under $50 per acquisition.
Why CPA matters
CPA helps you measure campaign efficiency. If your CPA is too high, you’re spending more than you’re earning. Tracking CPA over time helps you optimize bids, targeting, and ad creative for better results.
8. Return on ad spend (ROAS)
What is ROAS in PPC?
Return on ad spend (ROAS) measures how much revenue you generate for every dollar spent on PPC advertising.
What’s a good ROAS?
A ROAS of 4:1 (or $4 earned for every $1 spent) is generally considered strong, though this varies by industry and profit margins.
Why ROAS matters
ROAS is the bottom-line metric. It tells you whether your PPC campaigns are profitable. Tracking ROAS lets you see which ads, audiences, or keywords generate the highest return, helping you allocate budget more effectively.
9. Customer acquisition cost (CAC)
What is CAC in PPC?
Customer Acquisition Cost (CAC) calculates the total cost of turning a prospect into a paying customer — not just ad spend, but also sales and marketing costs.
What’s an average CAC?
CAC benchmarks vary, but in digital advertising, it’s not uncommon to aim for a CAC below your average customer’s first purchase value.
Why CAC matters
CAC helps you understand the full cost of growth. If your CAC is higher than your average revenue per customer, you’re losing money. Used alongside Lifetime Value (LTV), CAC helps you assess long-term campaign sustainability.
10. Lifetime value (LTV)
What is LTV in PPC?
Lifetime Value (LTV) is the total revenue you expect to earn from a customer over the entire relationship with your business. It’s critical for understanding customer profitability and how much you can afford to spend on acquisition.
What’s a good LTV?
There’s no fixed number — but a healthy LTV:CAC ratio is typically 3:1, meaning you earn $3 for every $1 spent acquiring a customer.
Why LTV matters
LTV puts your PPC investment into perspective. If your LTV is high, you may be able to justify higher (CPCs) or CPAs because each customer brings in more revenue over time. Tracking this KPI helps you make smarter, more strategic ad spend decisions.
11. Quality score
What is Quality Score in PPC?
Quality Score is Google Ads’ rating of the relevance and quality of your keywords, ads, and landing pages. It’s measured on a scale from 1 to 10, and it directly impacts your ad rank and cost-per-click (CPC). Higher scores can lower your costs and improve your ad placement.
What’s a good Quality Score?
A Quality Score of 7 or above is generally considered strong. Most well-optimized campaigns aim for scores between 7–10 for top-performing keywords.
Why Quality Score matters
Quality Score affects how efficiently your budget is spent. A higher score means you pay less for better positions — helping you get more clicks and conversions without increasing spend. Improving your Quality Score boosts your campaign’s ROI and long-term PPC performance.
FAQs: PPC KPIs — What are they, how to track, and more!
- What are PPC KPIs, and why are they important?
PPC KPIs (key performance indicators) are metrics that help you measure the success of your pay-per-click campaigns. Tracking them is crucial because they show whether your ads are driving real business results — like clicks, leads, and sales — and help you make data-driven decisions to improve performance.
- How do I know which PPC KPIs to focus on?
The best PPC KPIs to track depend on your campaign goals. If you want traffic, focus on impressions, clicks, and CTR. If your goal is leads or sales, prioritize conversion rate, cost-per-acquisition (CPA), and return on ad spend (ROAS). Align your KPIs with what matters most to your business.
- What’s a good CTR or CPC for my industry?
Benchmarks vary by industry, but a CTR of 4-6% for search ads and 0.5-1% for display ads is considered average. CPCs also differ, with some industries like legal or finance seeing higher costs per click. Use Google Ads data and industry reports to compare your performance.
- How often should I check my PPC KPIs?
Regular monitoring is key. We recommend checking your PPC KPIs weekly for performance trends and monthly for deeper insights and optimizations. Frequent tracking helps you catch issues early and make timely adjustments to improve results.
Track the right PPC KPIs to maximize revenue and take your ad campaigns to new heights
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