How To Read Your Google Ads Reports (Without Being a PPC Expert)
You don’t need to be a data scientist to know if your ads are working.
Most business owners get lost in the wall of numbers that Google provides, but you only need to look at a few key spots to see if you’re making money or burning it.
Filter Out the Noise
When you first log in to Google, you are going to be met with impressions.
An impression is just another way of saying that your ad was appearing on someone’s screen. This does not give any information about what is happening in the ads.
As a business owner, your number one priority should be all things conversations and cost per conversion, which is what each lead costs.
If you spent $1000 and got 10 leads, your cost per lead is $100. Is that math working within your margins? If it is, your account would be considered healthy.
Translating Expert Terminology into Plain English
Click Through Rate: Is Your Message Resonating with Your Audience?
Click-Through Rate (CTR) is the sole metric for telling you if your ad copy is engaging or if it sucks.
If 1000 people see your ad and only 10 click on it (1% CTR), your ad copy is either irrelevant to the people you are showing it to or boring enough to be ignored.
Healthy CTR can vary per industry, but it is typically between 3-5%+. This will indicate that people are engaging with the ad copy.
Cost Per Click: The “Tax” for a Visit
Google Ads operates as an auction. Your Cost Per Click (CPC) is the fee to get a visitor to your site.
If your CPC is getting larger, it typically means you are bidding against more competitors, or Google thinks your website isn’t a good match for the shopper, so they’re charging you a “bad quality tax”.
Conversion Rate: Is Your Website Doing Its Job?
If the ad gets them to the store, the website is the salesperson.
If 100 people click your ad but 0 buy anything, the problem usually isn’t the ads. It’s the website.
A low conversion rate means your landing page is confusing, slow, or doesn’t have a clear call to action.
Finding “Leaks” Within Search Terms
The Keywords tab shows what you hope to show up for. The Search Terms section shows what you have been paying for. For example, if you own an indoor golf simulator business, you may find search terms for people looking for “golf courses” or things related to outdoor golf courses. If you see these terms that are not resulting in sales, you will want to add them to negative keywords, so you are not wasting any more money.
Understanding Your Competitive Landscape
Impression Share: How Much of The Landscape Do You Own?
Think of Search Impression Share as your store’s opening hours.
If your share is 40%, it means your open sign is only lit for 4 out of every 10 customers looking for you. For the other 6, your doors are locked, and they’re walking straight to your competitor’s shop instead.
Auction Insights: Who Is Bidding Against You?
If you look under the auction insight, you can see which competitors are bidding on the same terms as you.
If a new advertiser appears and you see your CPCs going up, this report will tell you which advertiser is responsible for bidding on that share.
Weekly Health Check
You don’t need to live in your dashboard. Once a week, ask yourself a few simple questions:
- Is my click-through rate healthy?
- Is my cost per lead within my margin?
- Are my ads converting?
If you can answer all three, you should have a solid understanding of how your Google Ads are performing.
Turn Your Data Into Better Results
Understanding your Google Ads reports is the first step. The next step is using that data to improve performance and lower your Cost Per Lead.
If you want a second set of eyes on your account, we’re here to help.
Contact us today to turn your data into better results.
digital marketing specialist
ABOUT THE AUTHOR
Lauren Rausch
Since joining Magnetic North, Lauren has immersed herself in the evolving world of AI and shifting consumer search behaviors. She helps develop smart, forward-thinking content strategies that position Magnetic North and our clients ahead of the competition in AI-driven search. Adaptable and always ready for a new challenge, she brings a positive, solutions-focused approach to every project. Lauren enjoys meeting new people and loves the variety each client brings. With a strong foundation in digital marketing and data analysis, she thrives on turning metrics into meaningful insights and recommendations. Collaborative and optimistic, Lauren is a team player who excels in creative, fast-paced environments and brings ideas to life through impactful, visually engaging content.