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Google Ads KPIs: Which Metrics Actually Matter

Skip vanity metrics. Learn the 3 KPIs that drive profit: conversions, CPA, ROAS. Guide values from practice for e-commerce & B2B, plus how to optimize.

Mijo Jurisic

Google Ads Consultant

19 min readUpdated
Google Ads Reports and Analysis Guide

Reality: Most only look at clicks and costs. The truly important metrics are ignored. This guide shows which KPIs really matter and how to optimize data-driven.

Why the Right Metrics Are Critical

Example "Vanity Metrics" vs. "Business Metrics":

Campaign A (looks good):

Clicks: 5,000 (many!)
CTR: 8% (high!)
CPC: €0.80 (low!)
→ "Successful campaign!" ❓

But:

Conversions: 15
Cost per Conversion: €267
ROAS: 180%
→ UNPROFITABLE! ❌

Campaign B (looks bad):

Clicks: 800 (few)
CTR: 2.5% (low)
CPC: €4.50 (high!)
→ "Bad campaign"? ❓

But:

Conversions: 45
Cost per Conversion: €80
ROAS: 625%
→ HIGHLY PROFITABLE! ✅

Lesson: Clicks, CTR, CPC are "vanity metrics". Conversions, CPA, ROAS are "business metrics"!

The Most Important Google Ads KPIs

A note on the guide values: The ratings in this section are rough orientation values from my practice, not industry statistics. Your most important yardstick is your own previous periods and your margin.

Tier 1: Business Metrics (most important!)

1. Conversions

What: Number of goal actions (purchases, leads, etc.)
Where: Google Ads → Campaigns → Column "Conversions"
Goal: Maximize (at acceptable CPA)

2. Cost per Conversion (CPA)

What: Cost per conversion
Calculation: Cost / Conversions
Example: €3,000 / 50 conversions = €60 CPA

Orientation from my practice (e-commerce):
- Under €50: ✅ Excellent
- €50-€100: 😐 Ok
- Over €100: ❌ Expensive (depending on product)

Orientation from my practice (B2B lead-gen):
- Under €50: ✅ Cheap
- €50-€150: 😐 Ok
- Over €150: ❌ Expensive

3. ROAS (Return on Ad Spend)

What: Revenue per €1 ad spend
Calculation: Revenue / Cost × 100%
Example: €15,000 revenue / €3,000 cost = 500% ROAS
→ €1 spent brings €5 revenue

Blanket ROAS benchmarks won't help much, your margin decides.

Break-even ROAS = 1 / margin:
Margin 40% → Min. 250% ROAS (break-even)
Margin 30% → Min. 333% ROAS
Margin 20% → Min. 500% ROAS

4. ROI (Return on Investment)

What: Actual profit after deducting all costs
Calculation: (Revenue - Cost - Product costs) / Cost × 100%

Example:
Revenue: €15,000
Google Ads cost: €3,000
Product costs (60%): €9,000
Profit: €15,000 - €3,000 - €9,000 = €3,000
ROI: €3,000 / €3,000 × 100% = 100%
→ For every €1 spent, €1 profit

Profitable from: >0% ROI (profit after ad and product costs, fixed costs not yet deducted)

5. Conversion Rate

What: % of clicks that convert
Calculation: Conversions / Clicks × 100%
Example: 50 conversions / 2,000 clicks = 2.5%

Orientation from my practice (e-commerce):
- Over 3%: ✅ Excellent
- 2-3%: 😐 Good
- 1-2%: ⚠️ Average
- Under 1%: ❌ Problem

Orientation from my practice (lead-gen):
- Over 10%: ✅ Excellent
- 5-10%: 😐 Good
- 3-5%: ⚠️ Ok
- Under 3%: ❌ Problem

Tier 2: Performance Metrics

6. CTR (Click-Through Rate)

What: % of impressions that lead to clicks
Calculation: Clicks / Impressions × 100%
Example: 200 clicks / 10,000 impressions = 2%

Important for: Quality Score (expected CTR is one of its three components, but according to Google the QS itself is only a diagnostic tool)

Orientation from my practice (Search):
- Over 5%: ✅ Excellent
- 3-5%: 😐 Good
- 2-3%: ⚠️ Average
- Under 2%: ❌ Bad

Orientation from my practice (Display):
- Over 0.5%: ✅ Good
- 0.3-0.5%: 😐 Ok
- Under 0.3%: ❌ Low

7. CPC (Cost per Click)

What: Average cost per click
Calculation: Cost / Clicks
Example: €500 / 250 clicks = €2 CPC

Important: CPC alone says nothing about profitability!
Low CPC + low CR = high CPA (bad)
High CPC + high CR = low CPA (good)

8. Impression Share

What: % of possible impressions you receive
Example: 1,000 impressions / 2,000 possible = 50% IS

Components:
- Search Lost IS (budget): Lost due to budget
- Search Lost IS (rank): Lost due to Ad Rank (bid, ad quality and other factors)

Goal:
- Brand keywords: >90% IS
- Generic keywords: >60% IS (if profitable)

9. Quality Score

What: Google's relevance rating (1-10)
Where: Google Ads → Keywords → Columns "Quality Score"

Important: According to Google a diagnostic tool, not a direct auction input. It shows where the ad, keyword or landing page needs work.

Goal:
- QS 8-10: ✅ Excellent
- QS 6-7: 😐 Ok
- QS 4-5: ⚠️ Needs improvement
- QS 1-3: ❌ Critical

Tier 3: Diagnostic Metrics

10. Bounce Rate

What: % of sessions without engagement (in GA4 = 100% minus engagement rate)
Source: Google Analytics 4
Example: 2,000 non-engaged sessions / 4,000 sessions = 50%

Note: The old definition "left after 1 page" comes from
Universal Analytics, which was shut down in July 2023.

Orientation from my practice:
- Under 40%: ✅ Excellent
- 40-60%: 😐 Ok
- 60-70%: ⚠️ High
- Over 70%: ❌ Problem (landing page irrelevant?)

11. Time on Site

What: Average time on website (in GA4: "Average engagement time")
Source: GA4

Orientation from my practice (by industry):
- E-commerce: 2-4 min good
- B2B: 3-6 min good
- Content: 5-10 min good

Under 30 seconds: ❌ Problem (irrelevant traffic)

12. Pages per Session

What: Average pages per visit (in GA4: "Views per session")
Source: GA4

More pages = higher engagement (usually good)
But: E-commerce "too many" = user can't find → leaves

The Weekly Performance Check

Monday morning routine (15 min):

Check 1: Overall performance

Google Ads → Overview (last 7 days vs. previous 7 days)
→ Checklist (rules of thumb from my practice):
  ✓ Conversions: +/- 20% normal, +/-50% = investigate!
  ✓ CPA: +/- 15% normal, +30% = problem!
  ✓ ROAS: +/- 10% normal, -20% = alarm!
  ✓ Cost: Budget fully spent?

Check 2: Campaign performance

Campaigns → Sort by "Conversions"
→ Checklist:
  ✓ Top campaigns: Running stable? Budget fully spent?
  ✓ Bottom campaigns: Why bad? Pause?
  ✓ New campaigns: First conversions after 1-2 weeks?

Check 3: Keyword performance

Keywords → Filter: "Last 7 days" + "Min. 10 clicks"
→ Sort by CPA (highest first)
→ Checklist:
  ✓ Keywords with CPA >150% above goal: Pause!
  ✓ Keywords with 0 conversions but >50 clicks: Review (pause?)
  ✓ New keywords: Performance?

Check 4: Search terms

Campaigns → Insights and reports → Search terms
→ Checklist:
  ✓ Add irrelevant terms as negative keywords
  ✓ Add high-performing terms as exact-match keywords
  ✓ Strange queries = check Broad Match keywords

Check 5: Budget status

Campaigns → Columns: "Budget" + "Cost"
→ Checklist:
  ✓ "Limited by Budget"? → Increase (if ROAS good)
  ✓ Budget underutilized (<80%)? → Increase bids

Between your weekly checks, you can get budget and anomaly alerts by email, for example with Google Ads scripts you write with AI.

The Most Important Google Ads Reports

Note on the bid adjustments in the examples: The plus and minus values apply to manual bidding. According to Google's help, Smart Bidding doesn't support these adjustments, one exception being a -100% device exclusion.

Report 1: Campaign Performance Dashboard

Setup:

Google Ads → Campaigns → Report editor → Predefined reports (dimensions)
→ "Campaign Performance"
→ Add columns:
  - Conversions
  - Cost per Conversion
  - Conversion Rate
  - ROAS (or conversion value/cost)
  - Impression Share

Time period: Last 30 days vs. previous 30 days

Analysis:

  • Sort by ROAS → Identify top performers
  • Budget shifts from low to high performers

Report 2: Keyword Performance Report

Setup:

Reports → Keywords
→ Columns:
  - Clicks
  - Conversions
  - CPA
  - Conversion Rate
  - Quality Score
  - Impression Share
→ Filter: Min. 20 clicks (rule of thumb against random outliers, not statistical significance)

Analysis:

  • Keywords with CPA >150% of goal: Pause
  • Keywords with QS <5: Optimize or pause
  • Keywords with IS <50% (budget): Increase budget

Report 3: Search Terms Report (critical!)

Setup:

Campaigns → Insights and reports → Search terms
→ Filter: Last 30 days
→ Sort by: Clicks (highest first)

Analysis:

  • Irrelevant terms (e.g., "free", "used"): As negative keywords
  • High performers (high CR, low CPA): Add as exact-match keywords
  • Waste (many clicks, 0 conversions): Negative keywords

Do weekly! (top-priority report)

Report 4: Device Performance

Setup:

Reports → Device
→ Columns: Conversions, CPA, Conversion Rate
→ Time period: Last 30 days

Analysis:

Mobile: 1,000 clicks, 25 conv, €50 CPA
Desktop: 500 clicks, 30 conv, €40 CPA
Tablet: 100 clicks, 2 conv, €120 CPA

Action:
- Mobile: +20% bids (good performance)
- Desktop: +40% bids (best performance!)
- Tablet: -50% bids (poor performance)

Report 5: Location Performance

Setup:

Reports → Locations (Geo)
→ Columns: Conversions, CPA
→ Filter: Min. 10 conversions

Analysis:

Munich: 50 conv, €45 CPA ✅
Berlin: 35 conv, €60 CPA 😐
Hamburg: 20 conv, €90 CPA ⚠️
Rest: 15 conv, €120 CPA ❌

Action:
- Munich: +50% bids (scale!)
- Rest: -40% bids or exclude

Report 6: Time-Based Performance

Setup:

Reports → Time → Day of week
Reports → Time → Hour
→ Columns: Conversions, Conversion Rate, CPA

Analysis:

Day of week:
Mon-Fri: 80 conv, €50 CPA ✅
Sat-Sun: 15 conv, €95 CPA ❌

Hour (Mon-Fri):
09:00-18:00: 60 conv, €48 CPA ✅
18:00-23:00: 15 conv, €70 CPA 😐
23:00-09:00: 5 conv, €110 CPA ❌

Action:
- Mon-Fri 09-18: +40% bids
- Night: -60% bids or pause

Report 7: Audience Performance (remarketing)

Setup:

Reports → Audiences
→ Columns: Conversions, CPA, ROAS

Analysis:

Cart abandoners: 25 conv, €30 CPA, 900% ROAS ✅✅
Website visitors: 18 conv, €55 CPA, 520% ROAS ✅
Cold audience: 8 conv, €110 CPA, 180% ROAS ❌

Action:
- Cart abandoners: +200% bids (gold!)
- Cold audience: Reduce budget

Google Analytics 4 Integration

Why GA4 additionally?

  • Google Ads: Campaign focus, attribution to keywords
  • GA4: User journey focus, deeper insights, cross-device
GA4 → Admin → Product Links → Google Ads Links
→ Link
→ Auto-tagging: ON
→ Then create Google Ads conversions from your GA4 key events

The Most Important GA4 Reports for Google Ads

1. Landing page performance:

GA4 → Reports → Engagement → Landing Pages
→ Filter: Source/Medium = "google / cpc"
→ Metrics:
  - Sessions
  - Engagement Rate
  - Conversions
  - Bounce Rate

Analysis: Which landing pages convert best?
→ More budget to these campaigns/keywords

2. User journey (path exploration):

GA4 → Explore → Path Exploration
→ Starting point: "google / cpc"
→ Shows: Which pages after Google Ads click?

Example:
google/cpc → Landing Page → Product page → Cart → Checkout
→ 60% drop after landing page (problem!)
→ Optimize landing page!

3. Conversion funnel:

GA4 → Explore → Funnel Exploration
→ Funnel:
  1. Landing Page
  2. Product page
  3. Add to Cart
  4. Checkout
  5. Purchase

Analysis: Where do users drop?
→ Biggest drop = biggest optimization opportunity

4. Demographics (age/gender):

GA4 → Reports → User Attributes
→ Filter: google / cpc
→ Metrics: Conversions, Conv Rate

Example:
25-34 years: 45 conv, 4.5% CR ✅
55-64 years: 8 conv, 1.2% CR ❌

Action:
- Google Ads → Demographics → 25-34 years: +50% bids

5. Device & browser:

GA4 → Reports → Tech → Device
→ Deeper insights than Google Ads device report

Example:
iPhone: 3.5% CR
Android: 2.1% CR
→ iOS users convert better!

Attribution & Multi-Touch

Problem: Last-click attribution ignores customer journey!

Example real journey:

Day 1: Display ad → Website visited
Day 3: YouTube ad → Back to website
Day 7: Google Search "brand" → Purchase

Last-click: Search gets 100% credit
Reality: All 3 touchpoints important!

Attribution Models

Google Ads now offers only two attribution models: last click and data-driven. Google retired first click, linear, time decay and position-based in 2023 and switched the affected conversion actions to data-driven attribution. If you still see those models in older guides: you can no longer select them in Google Ads.

1. Data-driven (default, recommended):

Analyzes the actual conversion paths in your account
Assigns credit based on each touchpoint's measured influence
Default for most conversion actions

Data volume:
- Available for every conversion action, regardless of volume
- For better results Google recommends at least 200 conversions
  and 2,000 ad interactions within 30 days

2. Last click:

Last clicked touchpoint = 100% credit
Problem: Ignores the journey before it
Use: Simple, easy-to-follow baseline for comparison

Setup Data-Driven Attribution

Google Ads → Goals → Summary
→ Click the conversion action → Edit settings
→ Attribution model: "Data-driven" → Save

Compare models: Goals → Attribution → Model comparison

Custom Dashboards (Data Studio / Looker Studio)

Why custom dashboards?

  • All metrics at a glance
  • CEO/CMO-friendly (not for ads experts)
  • Automatic update (no manual reports!)

Dashboard 1: Executive Summary

KPIs:

[Time period: Last 30 days vs. previous 30 days]

1. Cost: €X,XXX (+/-X%)
2. Conversions: XXX (+/-X%)
3. Cost per Conversion: €XX (+/-X%)
4. ROAS: XXX% (+/-X%)
5. ROI: XXX% (+/-X%)

[Line Chart: Conversions over time]
[Pie Chart: Conversions by campaign]

Dashboard 2: Performance Deep-Dive

Sections:

1. Campaign Performance (Table)
   - Columns: Campaign, Conversions, CPA, ROAS

2. Top Keywords (Table)
   - Columns: Keyword, Conversions, CPA, QS

3. Device Performance (Bar Chart)

4. Geo Performance (Map + Table)

5. Hourly Performance (Heatmap)

Setup in Data Studio

Google renamed Looker Studio back to Data Studio in April 2026, so older guides still use the old name.

1. datastudio.google.com → Blank Report
2. Add data source: Google Ads
3. Select metrics & dimensions
4. Create charts (drag & drop)
5. Filters (date range, campaigns)
6. Share (view-only link for stakeholders)

Templates: Google offers pre-made templates (faster start!)

Data-Driven Optimization Decisions

Decision 1: Pause keyword?

Data needed:

- Enough data: my rule of thumb is min. 30 clicks, better spend of 1-2 target CPAs (that's still not statistical significance)
- CPA vs. target CPA
- Conversion rate vs. campaign average

Decision matrix:

CPA <Goal + CR >Average: ✅ Keep, increase bids!
CPA <Goal + CR <Average: 😐 Keep, observe
CPA >150% Goal: ❌ Pause (only once there's enough data, see above)
0 conversions after 50 clicks: ❌ Pause

Decision 2: Increase budget?

Data needed:

- ROAS vs. target ROAS
- Impression Share (Budget)
- Search Lost IS (budget)

Decision:

ROAS >Goal + IS <80% + Lost IS (budget) >20%:
→ ✅ Increase budget! (scale)

ROAS <Goal:
→ ❌ DON'T increase budget! (optimize first)

Budget underutilized (<80% spent):
→ Increase bids (NOT budget)

Decision 3: Switch bidding strategy?

Data needed:

- Conversions/month
- Conversion stability (not too volatile?)
- Current bidding strategy performance

Decision:

<30 conv/month: Manual or Maximize Conversions (without a target)
30-50 conv/month: Maximize Conversions, first tests with Target CPA
50+ conv/month: Target CPA or Target ROAS
100+ conv/month: Maximize Conversion Value

After switch: 4-6 weeks without major changes (learning phase)

The conversion thresholds and the 4-6 weeks are rules of thumb from my practice. Enhanced CPC (eCPC) used to be the usual intermediate step here, but Google retired eCPC for Search and Display campaigns in March 2025. Whether the new strategy really performs better is something you can measure under equal conditions with a Google Ads experiment before you apply it.

Common Analysis Mistakes

Mistake 1: Too early conclusions

❌ Problem: Keyword with 5 clicks, 0 conversions → pause ✅ Solution: Wait for more data. My rule of thumb: min. 30 clicks or spend of 1-2 target CPAs (that's still not statistical significance, just protection against judging on chance)

Mistake 2: Only look at last-click

❌ Problem: Display shows "bad" in last-click ✅ Reality: Display often assist (first touchpoint) ✅ Solution: Use data-driven attribution (the default in Google Ads) and check in model comparison how credit shifts versus last click

Mistake 3: Focus on vanity metrics

❌ Problem: "CTR is high → good!" ✅ Reality: CTR says nothing about profitability ✅ Solution: Focus on conversions, CPA, ROAS

Mistake 4: Too short time periods

❌ Problem: Judge performance after 3 days ✅ Solution: Min. 7-14 days (better: 30 days)

Mistake 5: No segmentation

❌ Problem: Only look at overall performance ✅ Solution: Segment by campaign, device, geo, time

Tools for Reporting & Analysis

Google native:

  • Google Ads Reports (built-in, free)
  • Google Analytics 4 (free)
  • Data Studio, called Looker Studio until April 2026 (free)

Third-party:

  • Supermetrics: Data export
  • Optmyzr: Advanced reports
  • AgencyAnalytics: White-label reports

Spreadsheets:

  • Google Sheets with Google Ads add-on (free)
  • Excel with Supermetrics

I deliberately don't list prices for third-party tools: they change constantly, so check the current terms directly with each provider.

Conclusion

Data-driven decisions = basis for Google Ads success

Weekly routine (setup):

Monday 9am (15 min):

  • Overall performance check (conversions, CPA, ROAS)
  • Campaign performance (identify top/bottom)
  • Budget status (fully spent? underutilized?)

Wednesday 9am (30 min):

  • Search terms review (add negative keywords!)
  • Keyword performance (pause/optimize)

End of month (1-2h):

  • Monthly deep dive (all reports)
  • Strategy adjustments (budget shifts, new tests)
  • Stakeholder report (Data Studio dashboard)

Most important metrics: Conversions, CPA, ROAS (not clicks/CTR!) They are only reliable with clean tracking, and that is exactly what I check in every Google Ads audit.

Google Ads Reporting Setup


FAQ: Google Ads Reporting & Analysis

Which Google Ads metrics are most important?

Top 3 business metrics (most important!): 1) Conversions (number of purchases/leads), 2) Cost per Conversion / CPA (cost per conversion), 3) ROAS (Return on Ad Spend - revenue per €1 spend). Not: Clicks, CTR, impressions (vanity metrics!). Most common mistake: Focus on CTR/clicks instead of conversions/profitability. Rule of thumb: If metric doesn't directly correlate with profit → secondary! Focus: Conversions, CPA, ROAS.

How often should I check my Google Ads performance?

Recommended frequency: Daily (5 min): Quick check (conversions, cost - everything normal?). Weekly (30-60 min): Performance review (campaigns, keywords, search terms, budget). Monthly (2-3h): Deep dive (all reports, strategy adjustments, stakeholder report). NOT: Hourly (too frequent! Let AI work). NOT: Monthly only (too rare! Problems detected too late). Optimal: Weekly rhythm (Monday morning routine).

What is a good ROAS for Google Ads?

It depends mainly on your margin, blanket benchmarks won't help much. Calculate break-even ROAS: 1 / margin. Margin 40% → min. 250% ROAS (break-even). Margin 30% → 333%. Margin 20% → 500%. Below that, you lose money on every sale. A good ROAS sits above that value with a buffer that covers returns, fixed costs and profit. How big the buffer needs to be follows from your own numbers.

What's the difference between CPA and ROAS?

CPA (Cost per Acquisition) = cost per conversion (€X per lead/purchase). Best for: Lead-gen, all conversions equally valuable. Example: €50 CPA → each lead costs €50. ROAS (Return on Ad Spend) = revenue per €1 spend (%). Best for: E-commerce, different order values! Example: 400% ROAS → €1 spend brings €4 revenue. When what? Lead-gen / same conversion values → CPA. E-commerce / different values → ROAS.

How do I use Google Analytics 4 with Google Ads?

Setup: GA4 → Admin → Product Links → Google Ads → Link. Auto-tagging: ON, then create Google Ads conversions from your GA4 key events. Benefits: 1) Deeper user journey insights (which pages after click?), 2) Landing page performance (which LPs convert?), 3) Funnel analysis (where do users drop?), 4) Demographics (age, gender), 5) Cross-device tracking. Google Ads = campaign focus. GA4 = user focus. Both together = complete picture!

What is attribution and why is it important?

Attribution = credit distribution across touchpoints. Problem: Last-click ignores the journey. Example: User sees Display ad (day 1) → YouTube ad (day 3) → Google Search (day 7) → Purchase. Last-click: Search gets 100% credit. Data-driven attribution: credit based on each touchpoint's measured influence. Google Ads now only offers two models: last click and data-driven (Google retired first click, linear, time decay and position-based in 2023). Data-driven is the default for most conversion actions and available for every conversion action, regardless of volume. To change it: Goals → Summary → conversion action → Edit settings → Attribution model. Important for: Budget allocation (Display and YouTube often look weaker in last-click than they are).

Should I create custom dashboards?

YES! Why? 1) All metrics at a glance (instead of 10 reports), 2) Automatically updated (no manual copy-paste), 3) Stakeholder-friendly (CEO/CMO understand it), 4) Faster decisions. Tool: Data Studio (called Looker Studio until April 2026, free!). Setup: 5-10h initially, but saves hours/week afterward. Minimum: Executive dashboard (conversions, CPA, ROAS over time). Advanced: Performance deep dive (campaigns, keywords, geo, device). Templates: Google offers pre-made (faster start)!

How do I analyze which keywords I should pause?

Decision framework: 1) Wait for enough data (my rule of thumb: min. 30 clicks or spend of 1-2 target CPAs, which is still not statistical significance), 2) CPA check: Over 150% of target CPA → pause, 3) Conversion rate: 0 conv after 50+ clicks → pause, 4) Quality Score: QS 1-3 + high CPCs → pause. DON'T pause when: Few clicks (<30), seasonal keyword (outside season), high QS (7+) despite low volume. Important: Pause NOT delete (historical data!). Review monthly (reactivation possible).

Mijo Jurisic

Google Ads consultant & founder of MJ Marketing. 5+ years of hands-on practice: from a self-taught start to advising direct Google Ads customers on behalf of Google. 500+ Google Ads accounts and €22M in media spend managed across the career.

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