PPC Metrics That Actually Matter (And What to Ignore)

Most PPC dashboards are cluttered - they’re full of metrics that don't drive decisions. You can't optimize what you don't measure… but measuring everything creates noise that hides what's actually important. Focus on metrics that directly connect to your business goals and ignore vanity metrics that look impressive but don't impact revenue.

The Core Performance Metrics

Click-through rate shows relevance between your ads and what people are searching for - but high CTR doesn't guarantee conversions. A 10% CTR with 1% conversion rate is worse than 5% CTR with 4% conversion rate. Use CTR to identify relevance problems, not to judge campaign success.

Cost per click helps with budget control but doesn't indicate quality. Paying $20 per click is fine if those clicks convert at 10% and generate $500 in revenue. Focus on cost per conversion, not cost per click.

Conversion rate is your main performance driver. This tells you how well your entire funnel works together. A 2% conversion rate means 98% of your traffic is wasted. Even small improvements in conversion rate have massive impacts on profitability.

Cost per conversion shows your budget efficiency. If you need leads under $50 each and you're paying $75, the campaign isn't working regardless of other metrics. This metric directly connects to your business economics and tells you if campaigns are profitable.

Business-Specific Metrics

Return on ad spend is crucial for ecommerce. A 4:1 ROAS means you make $4 for every $1 spent on ads. This metric accounts for different product values and profit margins - a campaign with 3:1 ROAS selling high-margin products might be more profitable than one with 5:1 ROAS selling low-margin items.