Common paid ads FAQs answered by experts

What KPIs should you track for PPC?

You should track PPC KPIs that show whether ad spend is turning into qualified leads, booked calls, sales, and pipeline, not only clicks or impressions.

The mistake many businesses make is judging paid ads by surface numbers. A campaign can have a high click-through rate and still waste money if the traffic is from weak searches, the landing page does not convert, or the leads are a poor fit. We look at PPC reporting from the bottom up: what did you pay, what did you get, what happened after the lead came in, and what needs to change next?

The most useful PPC KPIs depend on your business model. A dental office may care about new patient calls and appointment requests. A law firm may care about signed consultations. A pest control company may care about cost per booked job. An ecommerce brand may care about revenue, repeat purchases, and return on ad spend. The KPI should match the action that creates revenue.

KPIWhat it tells youWhat to watch
ConversionsHow many calls, forms, bookings, purchases, or chats came from ads.Track real lead actions, not page views as conversions.
Cost per conversionHow much you pay for each lead or sale.Compare it to your close rate and average customer value.
Conversion rateHow well traffic turns into action on your landing page.Low rates may point to weak offer, slow page, poor form, or wrong traffic.
Lead qualityWhether leads are real, local, relevant, and likely to buy.Tag spam, wrong-service, low-budget, and booked leads in your CRM.
ROAS or revenueHow much revenue ads produce compared with spend.Best for ecommerce or businesses with clean sales tracking.
CTRHow often people click after seeing your ad.Useful for ad relevance, but not a success metric by itself.
Search termsThe actual searches that triggered your ads.Add negative keywords when searches do not match buyer intent.
Impression shareHow often your ads show when eligible.Low share can mean budget limits, weak bids, or low ad quality.

Good example: An Orlando emergency dentist tracks calls from ads, form fills, booked appointments, cost per booked patient, and which keywords produced new patient revenue.

Bad example: The same dentist only reports impressions, clicks, and average CPC, then assumes the campaign is working because traffic went up.

For lead generation, we usually separate primary and secondary conversions. Primary conversions are actions that can create revenue, such as phone calls over 60 seconds, quote forms, appointment requests, purchases, and booked consultations. Secondary conversions are helpful signals, such as button clicks, scroll depth, video views, or visits to a pricing page. Secondary actions can guide optimization, but they should not carry the same weight as a real lead.

Your tracking setup matters as much as the KPI list. Use Google Ads conversion tracking, GA4, Google Tag Manager, call tracking, and your CRM or booking system. For service businesses, offline conversion tracking is often the missing piece because the ad platform may know a form was submitted, but not whether the lead became a sale. When that data comes back into Google Ads, bidding decisions get cleaner.

Use this quick PPC KPI checklist before judging performance:

  • Are calls, forms, purchases, and bookings tracked separately?
  • Are spam leads and wrong-service leads marked somewhere?
  • Do you know cost per lead and cost per booked customer?
  • Are branded and non-branded campaigns reported separately?
  • Are search terms reviewed for wasted spend?
  • Do landing pages show the offer, location, proof, and call button fast on mobile?

Our recommended action is to build your PPC report around decisions. Keep CTR, CPC, and impressions in the report, but do not let them lead the story. Lead with spend, qualified conversions, cost per qualified lead, booked jobs, revenue when available, wasted search terms, and next changes. A useful report should tell you whether to raise budget, tighten targeting, fix the landing page, adjust offers, or pause poor segments.

If your PPC reporting shows activity but not business results, our PPC services can help connect ads, landing pages, tracking, and lead quality into one cleaner system.

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