How to Know If Your Google Ads Are Working: 5 Simple Metrics to Watch
- Zo C
- Sep 24
- 4 min read
Updated: 22 hours ago
Running Google Ads can feel a little like driving a car with your eyes closed. You put your foot on the gas (your ad budget), but unless you’re watching the right signs on the dashboard, you don’t know where you’re headed.
The good news? You don’t need to be a data scientist to know if your Google Ads are working. By tracking a handful of simple, easy-to-understand metrics, you can tell whether your ads are driving real results—or just burning money.
In this article, we’ll break down five simple metrics you can watch to measure your Google Ads performance. We’ll also answer common questions along the way, like:
What are the most important metrics in Google Ads?
What are KPIs for Google Ads?
What’s a good CPM for Google Ads?
By the end, you’ll know exactly what to track, why it matters, and how to use this information to grow your business.
Metric 1: Click-Through Rate (CTR)
Think of CTR as a “popularity score.” It tells you how many people saw your ad versus how many actually clicked it.
If 1,000 people see your ad and 50 click, your CTR is 5%. That means your ad copy and targeting are grabbing attention.
Why it matters: A high CTR means your ad is relevant and compelling. A low CTR means you might need to rework your headlines, descriptions, or targeting.
👉 Answering the question: What are the most important metrics in Google Ads? CTR is one of the top ones. Without clicks, you’ll never get conversions.
Pro tip: A “good” CTR varies by industry, but anything above 2% on search ads is usually solid.
Metric 2: Conversion Rate (CR)
Getting clicks is nice, but clicks don’t pay the bills. Conversion rate measures how many people who clicked actually did what you wanted—whether that’s filling out a form, calling your business, or booking a service.
If 100 people click your ad and 10 become leads, your conversion rate is 10%.
Why it matters: This metric shows you if your landing page and offer are doing their job. High conversion rates mean your website is working hand-in-hand with your ads.
👉 Answering the question: What are KPIs for Google Ads? Conversion rate is one of the most important KPIs because it directly connects ads to real business results.
Pro tip: Aim for a conversion rate between 5–15% depending on your industry.
Metric 3: Cost Per Conversion (CPC or CPA)
This is where the rubber meets the road. Cost per conversion (sometimes called cost per acquisition, CPA) tells you how much it costs to actually get a new lead or customer.
If you spend $500 on ads and generate 10 leads, your cost per lead is $50.
Why it matters: You don’t just want leads—you want affordable leads. If you know the average value of a customer, you can quickly tell whether your ads are profitable.
Pro tip: Compare your cost per conversion to your average customer value. If a new HVAC customer is worth $800, spending $100 to get them is a win all day long.
Metric 4: Return on Ad Spend (ROAS)
This is the holy grail metric for most businesses. ROAS tells you how much revenue you earn for every dollar spent on ads.
For example, if you spend $1,000 on ads and make $4,000 in revenue, your ROAS is 4:1. That means you earn $4 back for every $1 you put in.
Why it matters: ROAS helps you decide if scaling your ads makes sense. A high ROAS means your ads are profitable and you can safely increase your budget.
👉 Answering the question: What are KPIs for Google Ads? ROAS is often the most important KPI because it ties directly to profit.
Metric 5: Cost Per Thousand Impressions (CPM)
Finally, let’s talk about CPM. This measures how much you’re paying for every 1,000 people who see your ad.
CPM is especially useful if you’re running display ads or YouTube campaigns, where awareness matters just as much as clicks.
Why it matters: CPM helps you understand how efficiently you’re buying attention. If your CPM is sky-high, you may need to adjust your targeting or bidding strategy.
👉 Answering the question: What’s a good CPM for Google Ads? It depends on the industry, but for display campaigns, CPM often falls between $2–$10. For YouTube, it can be slightly higher. The key is comparing CPM to your CTR and conversions—cheap impressions don’t matter if nobody clicks.
Putting It All Together
So, how do you know if your Google Ads are working? Simple:
Are people clicking your ads? (CTR)
Are those clicks turning into leads or sales? (Conversion Rate)
Are you paying a reasonable price per lead? (Cost Per Conversion)
Are you making more money than you’re spending? (ROAS)
Are you buying attention efficiently? (CPM)
When you monitor these five metrics regularly, you’ll never have to guess whether your ads are paying off.
Why These Metrics Matter for Your Business
The truth is, Google Ads can be a goldmine — or a money pit. The difference comes down to whether you’re tracking the right KPIs and adjusting accordingly.
The most important metrics in Google Ads — CTR, Conversion Rate, Cost Per Conversion, ROAS, and CPM — might look simple, but they’re powerful. Together, they tell you what’s working, what’s wasting money, and where to focus your efforts.
At Cadencia Digital Marketing, we specialize in turning those numbers into results. Our team doesn’t just run ads — we refine them weekly, track performance obsessively, and focus on maximizing ROI for every dollar you spend.
Want to find out if your Google Ads are leaking money? Download our free guide, “7 Hidden Leaks in Your Google Ads Account,” and learn how to fix the costly mistakes most businesses miss.
Ready to See If Your Google Ads Are Working?
If you’re tired of wondering whether your ads are delivering real results, we can help. At Cadencia Digital Marketing, we’ll audit your current campaigns, show you exactly where money is leaking, and create a plan to maximize your ROI.
👉 Contact us today for a free consultation and let’s make sure your Google Ads are actually working for your business.