Google Ads Report Metrics
Definitions, formulas, and how to read each metric in a Google Ads performance report.
Impressions
Definition
The number of times your ad was shown, regardless of whether anyone clicked.
Formula
Counted directly by Google Ads — no calculation needed.
How to read it
Impressions alone tell you reach, not performance. Use it as the denominator for CTR. A sudden drop in impressions usually means a budget cap, a Quality Score drop, or a shift in search volume.
Benchmark
Varies widely by industry and match type. Track the trend rather than the absolute number.
Clicks
Definition
The number of times someone clicked your ad.
Formula
Counted directly.
How to read it
Clicks measure demand for your ad. Compare clicks to conversions to understand how well your landing page is working. A high click count with low conversions points to a landing page problem, not an ad problem.
Benchmark
No universal benchmark. Compare week over week and against your own historical average.
CTR (Click-through rate)
Definition
The percentage of impressions that resulted in a click.
Formula
CTR = Clicks ÷ Impressions × 100
How to read it
CTR measures how relevant your ad is to the searches triggering it. Low CTR means the ad copy isn't matching search intent, or you're showing up for broad terms that don't fit your offer. Search campaigns typically outperform display here — don't compare the two directly.
Benchmark
Search: 3–5% is reasonable across most industries. Display: 0.1–0.5% is normal.
Average CPC
Definition
The average amount you paid per click.
Formula
Avg. CPC = Total cost ÷ Total clicks
How to read it
CPC tells you cost efficiency, not quality. A low CPC from irrelevant clicks is worse than a high CPC from buyers. Compare CPC across campaigns and keywords — high CPC on high-converting terms is usually fine; high CPC on low-converting terms is waste.
Benchmark
Highly industry-dependent. Legal and finance keywords can exceed $50 CPC. E-commerce often runs $0.50–$3.
Conversions
Definition
The number of times someone completed a tracked action after clicking your ad — purchase, form fill, call, download, etc.
Formula
Counted by Google Ads conversion tracking.
How to read it
The most important outcome metric. Verify your conversion tracking is set up correctly before reporting — misconfigured tracking is a common source of inflated or missing conversion data.
Benchmark
Depends entirely on what you're counting as a conversion.
Conversion rate
Definition
The percentage of clicks that resulted in a conversion.
Formula
Conv. rate = Conversions ÷ Clicks × 100
How to read it
Conversion rate measures your landing page and offer, not your ads. If CTR is high but conversion rate is low, the problem is post-click — the page doesn't match the ad's promise, the form is too long, or the offer isn't strong enough.
Benchmark
Search campaigns: 2–5% is a reasonable baseline. E-commerce tends lower (1–3%), lead gen higher (5–15%) depending on friction.
Cost per conversion
Definition
How much you spent on average to get one conversion.
Formula
Cost per conversion = Total cost ÷ Conversions
How to read it
The unit economics metric. Compare it against what a conversion is worth to your business (your target CPA). If cost per conversion is rising over time without a change in bids or budgets, it usually means auction competitiveness has increased or conversion rate has dropped.
Benchmark
Target CPA varies by business model — set a threshold based on your margin, not industry averages.
ROAS (Return on ad spend)
Definition
Revenue generated per dollar spent on ads.
Formula
ROAS = Conversion value ÷ Cost
How to read it
ROAS is the clearest way to connect ad spend to business outcomes for e-commerce. A ROAS of 4 means $4 in revenue for every $1 spent. It requires conversion value to be tracked — if you're tracking leads (not purchases), ROAS is less meaningful unless you assign a value to each lead.
Benchmark
A break-even ROAS depends on your margins. A 2–3× ROAS might be fine for high-margin products; thin-margin businesses may need 8–10×.
Quality Score
Definition
Google's 1–10 rating of the relevance and quality of your keywords, ads, and landing pages.
Formula
Composite score — not directly calculable. Based on expected CTR, ad relevance, and landing page experience.
How to read it
Quality Score affects your CPC and ad rank. A low Quality Score means you're paying more for the same position than a competitor with better relevance. Include it in internal or agency reports; leave it out for executive stakeholders who don't control ad copy or landing pages.
Benchmark
7–10 is good. Below 5 warrants investigation — check which component (CTR, relevance, or landing page) is dragging it down.