Here are 5 key metrics that every professional in the field should know by heart to invest effectively in advertising.

Click-Through Rate (CTR): The secret to capturing customers at first glance!

Click-Through Rate (CTR)

Imagine you're browsing the internet and see tons of ads. CTR is the "attraction" of your ad, determining whether users will stop and click on it. It's not just a number, but a "favorite metric" from Google, showing whether your ad is "in line" with the searcher's preferences.

• A high CTR is evidence that you understand your customers extremely well. Your ads address the right problem, the headlines are compelling, and the extensions are making your ads stand out from the competition. Conversely, a low CTR is a warning sign: your ad content is boring or not targeting the right audience.

In a real-world case study of a client in the e-commerce industry selling smart home appliances, the click-through rate (CTR) was low. Despite the ads consistently ranking high, the click-through rate was very low. After analysis, we realized the ad copy was too generic. For example, instead of simply stating "Modern kitchen appliances," we tried a more specific approach: "Air fryer A - 30% off - Healthy cooking." The result was a fourfold increase in CTR. The lesson learned is: get straight to the customer's needs, don't beat around the bush!

Don't let your ads be "invisible" to your customers. Turn your CTR into a secret weapon to attract them.

Cost Per Click (CPC): Don't just pay, "buy" effectiveness!

Many people still think that to rank highly, you just have to pay a high price. But on Google Ads, it's not that simple. Google prefers "quality" ads over "rich" ads. CPC is the answer to this "smart investment" problem.

• CPC is a number that reflects how much you pay per click, but it's heavily influenced by Quality Score. A high Quality Score means you can pay less than your competitors while still achieving a higher ranking. This is because Google wants to provide the best possible user experience.

For example, a warehouse management software (WMS) company was experiencing an unreasonably high CPC, causing their budget to evaporate quickly. We discovered that the keyword's Quality Score was only 4/10. The problem lay in the lack of relevance: the ads were too general, while the landing page wasn't focused on the product. We then analyzed the campaign, redesigned the ad to focus on features like "real-time inventory management," and built a dedicated landing page for the WMS software. As a result, the Quality Score skyrocketed, and the CPC dropped by over 40%. Less money spent, more results.

Optimize your Quality Score, don't just focus on increasing your bids.

Conversion Rate: Where "clicks" turn into "money"

Once a customer clicks on your ad, they've "stepped into" your "store." At this point, the playing field is no longer Google's, but your landing page's. The Conversion Rate is the metric that determines whether your "store" is attractive enough to keep them engaged.

• A high conversion rate indicates that your website is user-friendly, easy to use, and has a strong call to action (CTA). Conversely, a low conversion rate is a warning sign: your website has "gaps" that cause customers to leave midway through their visit.

For example, a fashion chain might have massive traffic from Google Ads, but very few orders. This could be because their website is too cumbersome: a complicated checkout process, too much information to fill out, and incredibly slow mobile loading speeds. Simply streamlining the checkout process, optimizing page load speed, and highlighting the "Buy Now" button can significantly increase conversion rates.

So, don't just focus on advertising, invest in your "store."

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Return on Ad Spend (ROAS): The ultimate measure of profitability.

You run ads to make money, not to burn it. ROAS is the "financial statement" of your campaign, telling you how much revenue you generate for every dollar spent. It's the ultimate metric for you to evaluate whether this campaign is a good investment.

• ROAS reflects the combination of CPC, Conversion Rate, and average order value. A high ROAS indicates that you have performed very well from the acquisition stage (CTR), cost optimization (CPC) to closing the sale (Conversion Rate).

For example, a company providing comprehensive marketing services might run Google Ads but only break even with its ROAS (Return on Assets). This could mean customers aren't buying high-value services immediately. Therefore, try changing your strategy: Instead of direct sales, try running ads that encourage users to download free materials. Then, use a remarketing campaign to follow up with these people and advertise your services. The initial cost is low, and once they trust the brand, the conversion rate will skyrocket. Overall ROAS will grow sustainably.

Don't just focus on sales; build a smart customer "funnel" to increase ROAS in the long term.

Quality Score: Your "VIP card" on Google Ads

Google always wants users to have the best experience. Therefore, if your ads are relevant, engaging, and useful, Google will "reward" you with a High Quality Score. This is your "VIP card" that helps you reduce costs and get a better ranking.

• A high Quality Score is the result of synergy between keywords, ad copy, and landing pages. If these three elements match, Google will rate you highly. This also means that, if you do it well from the start, you will save a lot of money.

For example, a travel company advertises a Phu Quoc tour, but its Quality Score is only 3/10. The problem is: the ad only says "Affordable tour," while the landing page displays all of the company's tours. Google doesn't rate this lack of relevance highly. To improve, create a specialized ad: "3-Day 2-Night All-Inclusive Phu Quoc Tour - Discover the Pearl Island." Simultaneously, build a new landing page focusing solely on this tour. As a result, the Quality Score skyrockets to 8/10, ad placement improves significantly, and costs decrease by 30%.

Therefore, the key to winning is not "bidding" but "competing on quality".

Manage and create Google Ads easily with GTG CRM.

Did you know that optimizing these metrics becomes easier than ever with a powerful tool?

GTG CRM understands the challenges of managing Google Ads. That's why we've developed features to help you manage and create ads directly on the platform:

• Create ads quickly with AI: GTG CRM's integrated AI helps you create ad content and headlines in just minutes. No more brainstorming ideas; AI will suggest the most SEO-friendly and engaging ad templates.
• Centralized management: You can track performance, adjust budgets, and optimize your Google Ads campaigns all on the same interface as your other channels. This saves time, synchronizes data, and provides an overview of your marketing effectiveness.

Conclude

Google Ads isn't just about spending money; it's about the art of optimization and data analysis. By mastering these metrics, you'll transform your ads into a powerful tool for sustainable revenue. Do you have any questions about these metrics? Let's discuss them with GTG CRM.