If you’ve logged into Google Ads recently and felt overwhelmed by all the numbers staring back at you, you’re not alone. It’s a lot to take in, especially since Google quietly added a new metric called Original Conversion Value toward the end of last year. While they keep adding these new layers to help optimize your account, all that extra data can actually make it harder to answer the question: are these ads working?
This recent update is a good reminder that understanding your data matters just as much as running the ads themselves. Many metrics look impressive on a dashboard but don’t actually tell you if you’re reaching your business goals. With Google leaning so heavily into automation and “smart” features, it’s easy to get distracted by flashy numbers that don’t lead to real results.
In this post, we’ll walk through what your Google Ads metrics actually mean, which ones deserve your attention, which ones you should take with a grain of salt, and how they all fit together to give you a clear picture of your campaign performance.
Note: Google Ads is an umbrella that covers several different types of ad “inventories.” This guide covers the core metrics used across the platform, but keep in mind that performance benchmarks will look different depending on whether you are running Search ads, Display ads, YouTube video ads, or Google Shopping ads.
Measuring Attention: Traffic Metrics
You might already be familiar with some of these terms, especially if you work in marketing or have run ads on other platforms like Meta or LinkedIn. However, the way these numbers interact within Google Ads is unique. Before we dive into the complex value rules, we need to make sure we’re all speaking the same language when it comes to the basics.
Impressions
Think of an impression as a glance. Every time your ad shows up on a screen, that counts as an impression. It’s important to remember that this isn’t a count of how many people saw your ad. One person could scroll past your ad three times, and that would count as three impressions.
You might be used to seeing “Reach” on other platforms, which tracks how many unique individuals saw your ad. While Google does offer reach and frequency reporting in certain campaign types like Display and YouTube, Search campaigns are built and measured around impressions because each ad auction happens per impression, not per person.
- When it matters: Impressions are great for brand awareness and staying “top of mind.” This is especially true for a public service campaign or a major announcement where the goal is simply to get the word out. In these cases, a high impression count shows that you’re successfully sharing your message with your entire target area.
- When it doesn’t: In many ways, impressions can be a vanity metric. A high number of impressions may look impressive but doesn’t mean much if you’re looking for specific results like sales, donations, or newsletter signups. If people are seeing your ad but don’t have the intent to act, you’re just paying for “eyes” without any real impact.
Clicks
If an impression is a glance, a click is a handshake. It happens when someone stops scrolling and decides to engage with what you’re saying. A click tells you that your message was relevant enough to make someone want to learn more.
It is worth noting that Google Ads typically shows you total clicks. This means if one person clicks your ad three times, Google counts that as three clicks. Because you usually pay for every click, Google tracks every single event rather than just unique individuals. They do try to filter out “invalid” traffic like bots or accidental double-clicks, but the final number still reflects total engagement.
- When it matters: Clicks are your best indicator of initial interest. If you’re running a campaign to drive traffic to a specific landing page, a high number of clicks shows that your ad is doing its job. It means your creative and your headline are working together to grab people’s attention.
- When it doesn’t: Clicks alone are not a measure of success. You can get thousands of clicks, but if those people leave your site immediately, that traffic isn’t very valuable. If your goal is a specific action—like a donation or a purchase—a click is just the first step in the process. A high click count without any follow-through usually means there is a disconnect between your ad and your website. It can be a sign that your targeting is off, your site is loading too slowly, or the page is just too difficult for people to use.
Click-Through Rate (CTR)
If an impression is a glance and a click is a handshake, your CTR is the success rate of those introductions. It’s calculated by dividing clicks by impressions and tells you how effective your ad is at stopping the scroll and getting someone to engage.
Context matters a lot here. A Search ad will almost always have a higher CTR than a YouTube or Display ad because the person is already looking for help. Always evaluate CTR within the channel you’re using. And for our nonprofit friends using a Google Ad Grant, there is one exception worth noting: Google actually requires a 5% minimum CTR to keep your account in good standing.
- When it matters: A high CTR usually means your ad is highly relevant to the people seeing it. Think of CTR as a health check for your strategy. It’s an indicator of how well your creative (the writing, graphics, or video) is landing, how precise your targeting is, and even if your ad groups are organized correctly. If your CTR is low, it might mean you are diluting your message by trying to reach too many different types of people at once. There’s no universal “good” CTR. While third-party sources like Wordstream and Databox often cite Search CTR averages in the 3–6% range, Google doesn’t publish an official benchmark. What matters more is how your CTR trends over time and whether it’s improving compared to your own past campaigns.
- When it doesn’t: Don’t get discouraged by low numbers without looking at the platform first. Comparing a banner ad to a Search ad is like comparing apples to oranges. A low CTR can also matter less if the few people who do click are high-quality leads who take action immediately. This is especially true if you offer a high-value product or service where one “win” covers your costs.
Follow the Money: Cost Metrics
Now for the part everyone cares about: the price tag. Google has a few different ways of charging you depending on what your goals are. Understanding these cost metrics helps you see how efficiently your budget is being used. It’s not just about how much you’re spending, but rather what that money is actually buying you in the auction.
Total Spend
This is the most straightforward number on your dashboard. It is the total amount of money Google has charged you for your ads during a specific timeframe. You set a daily budget, and Google tries to spend it. It is important to know that Google can spend up to double your daily budget on a busy day if they see a lot of high-quality traffic, but they will never exceed your total monthly limit.
- When it matters: Your total spend is your primary guardrail. It’s the number you check to make sure your campaign is staying on track and not accidentally burning through your entire marketing budget too early.
- When it doesn’t: Spending your full budget isn’t a sign of success on its own. If you spend $1,000 and don’t get any clicks or signups, that spend was just a cost without a return. Always look at this number alongside your results to see if the investment is worth it.
Cost Per Thousand Impressions (CPM)
CPM stands for “Cost Per Mille” (which is the Latin word for “thousand”). This is the price you pay for every 1,000 times your ad is shown. In the advertising world, charging for every single view would result in tiny fractions of a cent. Measuring by the thousand makes the math much easier to handle.
- When it matters: This is a key metric for awareness campaigns, especially with Display and YouTube. If your goal is to blanket a specific area with a public service announcement, you want a low CPM so you can get your message in front of as many people as possible for the lowest price.
- When it doesn’t: If you are running a campaign focused on a specific action like sales or donations, your CPM is not the most helpful metric. You don’t care how many thousands of people saw the ad if they didn’t click it.
Cost Per Click (CPC)
This is the average amount you pay every time someone actually clicks your ad. Since most Google Ads campaigns are “Pay-Per-Click,” this is the number most people care about. Your CPC isn’t a fixed price. It changes based on how much you and your competitors are bidding, the quality of your ad, and how relevant your landing page is to the search. If your ad is high-quality and very helpful, Google might actually reward you with a lower CPC.
- When it matters: This matters when you have a specific budget and a specific goal. If your CPC is too high, you’ll get fewer clicks for your money, which means fewer chances for someone to donate or buy.
- When it doesn’t: A low CPC is only good if the traffic is high-quality. Paying $0.10 for a click from someone who has no interest in your cause is actually more expensive than paying $2.00 for a click from someone who is ready to sign up.
Tracking Real Results: Conversion Metrics
Views and clicks are a great start, but they don’t pay the bills or fund the mission. Conversion metrics are the numbers that tell you if someone actually took action after they landed on your site. While traffic metrics show you how much interest you’re generating, these measurements show the results of your ad spend.
Conversions
A conversion is a completed action that you’ve decided is valuable. It is important to remember that what counts as a win depends entirely on your specific setup. For one person, a conversion might be a contact form submission or a phone call, while for another, it could be a donation or a digital purchase. If you haven’t told Google what these actions look like, it won’t be able to track them for you.
- When it matters: This is the ultimate measure of success for most campaigns. Whether you are tracking form submissions, phone calls, or sales, this number shows you exactly how many people crossed the finish line.
- When it doesn’t: This metric is only as good as your tracking. If your conversion tracking is broken, the data is useless. Bad tracking can make a failing campaign look like a hero or a great campaign look like a waste of money. It also might not be the best focus if you have a very long sales cycle. If it takes six months for a lead to become a customer, looking at today’s conversions won’t tell you the whole story.
Conversion Rate
This is the percentage of clicks that turned into conversions. It is the best way to see how well your traffic and your website are working together to drive action.
- When it matters: Your conversion rate reveals a lot about the intent of your audience and the quality of your landing page. If you have a high click-through rate but a tiny conversion rate, it’s a major red flag that people aren’t finding what they expected once they arrive.
- When it doesn’t: Like other percentages, this needs context. A 50% conversion rate sounds amazing, but if it only represents one person out of two clicks, it isn’t a large enough sample size to make big decisions. You need a steady stream of traffic before this percentage becomes a reliable guide.
Cost Per Conversion
Google usually calls this Cost Per Conversion, though you might also hear people call it CPA (which stands for Cost Per Acquisition). This tells you exactly how much you paid, on average, to get one person to take action. This is usually a much more useful efficiency metric than Cost Per Click.
- When it matters: This is the metric you should watch to see if your ads are sustainable. If it costs you $100 to get a $50 donation, you know you need to adjust your strategy to make the math work.
- When it doesn’t: Lower isn’t always better. Cheap conversions can sometimes be low quality. For example, you might get hundreds of “leads” for a few cents each, but if none of those people ever pick up the phone or open your emails, those conversions aren’t actually helping your business.
Putting a Price on Performance: Value-Based Metrics
Once you have your conversion tracking in place, you can start looking at the actual dollar amount those actions represent. Google allows you to layer in specific rules and “bonuses” to help their automation find your most valuable customers. While these tools are incredible for helping the AI bid on your behalf, they can make your reports look a little messy if you don’t know what you are looking at.
Conversion Value
This is the total revenue or “weight” assigned to your conversions. For a shop, this might be the exact price of a t-shirt. For a nonprofit, it might be the amount of a donation. If you tell Google, “I’ll pay more for a new customer,” Google may take a $50 sale and record it as $100 in your Google Ads reporting to guide automated bidding. It didn’t actually generate an extra $50. It simply weighted that action more heavily to guide the AI toward similar users.
- When it matters: This is critical for e-commerce, ticket sales, or any goal where a “win” has a clear dollar amount. It allows you to see the actual revenue generated by your ads rather than just a raw count of clicks or leads.
- When it doesn’t: This metric can be misleading if you use “Value Rules.” Google might automatically inflate this number to tell the AI that a new customer is worth more than a returning one. If you aren’t careful, your reports might show you made more money than what actually hit your bank account.
- When to use it: Use this when you are looking at Smart Bidding. It shows you if Google is successfully following your instructions to prioritize certain types of people or actions.
New Metric: Original Conversion Value
This is a newer, cleaner metric from Google. It shows you the unadjusted value of a conversion before Google applies any of those automation “bonuses” or value rules. It is essentially your Conversion Value minus any artificial adjustments.
- When it matters: This matters most for agencies and in-house teams who need honest revenue reporting. It allows you to compare different campaigns on a level playing field without the AI weighting the results. If you are using Smart Bidding or “New Customer Acquisition” goals, this is the best way to see the actual cash value your ads generated.
- When it doesn’t: If you don’t use any value rules or automation adjustments, this number will be exactly the same as your standard Conversion Value. In that case, adding this extra column to your report just creates unnecessary clutter.
- When to use it: Use this for Accounting and Reporting. When you need to tell your boss or your board exactly how much money actually came in the door, this is the column you want. It prevents you from reporting “bonus value” as if it were real cash.
Return On Ad Spend (ROAS)
ROAS is a ratio that tells you how much revenue you earned for every dollar you spent on ads. You calculate this by dividing your Conversion Value by your Total Spend. It is important to know that Google uses your adjusted Conversion Value to calculate this number. If you have rules that tell Google a new customer is worth a “bonus,” that bonus is included in your ROAS. This helps the AI understand that its aggressive bidding is working, even if those “bonuses” aren’t actual cash in your bank account.
- When it matters: ROAS is a powerful way to measure the efficiency of your budget. It helps you quickly identify which campaigns are “profitable” and which ones are costing you more than they bring in.
- When it doesn’t: It is very easy to misread this number if your profit margins are thin. A 400% ROAS sounds amazing, but if your product costs are high, that might actually mean you are barely breaking even after you pay for shipping and labor.
Reading Between the Lines: How to Use Your Data
Once you know what all the metrics mean, the next question is which ones you should actually pay attention to. The answer is simpler than it looks. You don’t need every number on the dashboard. You just need the ones that match what you’re trying to accomplish.
What Metrics Should I Care About?
Your goal dictates your dashboard. Think of it like using tools. You wouldn’t use a thermometer to check how fast your car is going, and you shouldn’t use impression counts to judge whether a sales campaign worked. The right metrics depend on the goal of the campaign.
- Awareness Campaigns: If your goal is simply to get the word out, like promoting a public service announcement or launching a new brand, focus on Impressions, CPM, and Reach. These metrics tell you how many people saw your message and how efficiently you spread it across your target area.
- Lead Generation Campaigns: If you want people to take a clear action, like filling out a form or calling your office, focus on Conversions, Cost per Conversion, and Conversion Rate. These show whether your ad and landing page are doing a good job turning interest into action.
- Revenue-Driven Campaigns: If you’re selling tickets, collecting donations, or driving online sales, your main focus should be Original Conversion Value, Conversion Value, and ROAS. These metrics help you see how much real value your ads are bringing in for every dollar you spend.
When Metrics Can Be Misleading
Data is a great servant but a poor master. Sometimes a number looks like a victory on the screen but doesn’t feel like one in your bank account. This often happens because automated bidding can inflate numbers to meet the goals you set.
Watch out for “phantom growth.” You might see your ROAS go up while your actual sales stay flat. This can happen if Google starts prioritizing high-value targets that you’ve heavily weighted with value rules. The AI thinks it is winning, but your total volume hasn’t moved.
Looking at one metric in a vacuum is dangerous. A high CTR is great, but it’s a disaster if the conversion rate is zero. Always remember that metrics are signals, not concrete answers. They are clues that tell you where to look closer.
How We Recommend Reporting on Google Ads
It helps to separate the numbers Google’s automation needs from the numbers humans actually need to make decisions. Google Ads mixes those together by default, which is why reports often feel confusing or contradictory.
- Don’t check results every day. Daily numbers are noisy, especially with automated bidding. One slow day or spike doesn’t mean anything is broken or fixed. Looking too often makes it easy to overreact and change things before the data has settled.
- Weekly check-ins are best used for spotting trends. A weekly check-in is great for spotting red flags or tracking momentum. This is when you ask, “Is anything clearly off?” not “Should we rebuild this campaign?”
- Monthly is where decisions should happen. Most meaningful Google Ads decisions should be made on 30-day windows. That’s enough data for patterns to emerge and for Google’s automation to stabilize. This is when it makes sense to adjust budgets, refine targeting, or rethink strategy.
- Always compare to something. A number on its own doesn’t tell you much. Compare month over month, year over year, or against a clear baseline. Improvement over time matters more than hitting a specific benchmark. And don’t expect every metric to move in the same direction at once. What you’re looking for is alignment, not perfection. If spend goes up, are conversions or value following? If CTR drops, is conversion quality improving? Mixed signals are a cue to investigate, not panic.
- Always look at “what you paid” and “what you got” together. Metrics like Cost per Click or Cost per Conversion tell you how much money went out. Metrics like Total Conversions or Original Conversion Value tell you what came back. If you only look at one side, it’s easy to get the wrong idea. Cheap clicks don’t matter if no one takes action, and lots of conversions don’t mean much if they cost too much to get.
- We also recommend creating two separate reporting views. One view is for Google. This is the information the system uses to decide how much to bid and where to spend your budget, using metrics like Conversion Value and ROAS. The other view is for people. This is where you step back and look at real results, using things like Original Conversion Value and total conversions to see whether the ads did what you hoped they would do. Keeping these views separate makes reports easier to understand because you’re not mixing Google’s bidding logic with what actually happened in the real world.
- Write down what you change and when. Even a simple note like “Updated landing page” or “Switched bidding strategy” makes reporting clearer later. It’s a lot easier to explain performance when you can connect changes to outcomes instead of trying to reverse-engineer the story after the fact.
Clear Metrics Make Decisions Easier
At the end of the day, a Google Ads dashboard is only as good as the decisions it helps you make. While high numbers look great on a screen, metrics are only truly useful when they accurately reflect your real-world results. If your data feels confusing or doesn’t seem to match the reality of your business, it’s usually a sign of a strategy or tracking issue that needs a closer look.
If you want a partner to help you make sense of these numbers and turn them into a clear plan for growth, reach out, and let’s talk.