CTR reflects ad relevance, not just visibility. A low CTR points to a copy or targeting problem.
CPC and ROAS together tell you whether spend is efficient and profitable. Neither alone is enough.
Conversion rate depends on the landing page as much as the ad itself.
Lead-generation metrics like form submissions and phone clicks matter as much as clicks for service businesses.
Click-Through Rate (CTR)
Every metric below assumes conversion tracking is set up and verified in Google Ads. Google’s own guide covers what counts as a conversion and how to check it is firing. Most under-performing accounts we audit fail this step before anything else.
The click-through rate is a fundamental metric that indicates the percentage of users who click on an ad after viewing it. A high CTR suggests that your ad is compelling and relevant to the target audience, while a low CTR indicates potential issues with ad copy, targeting, or ad placement. By monitoring CTR, businesses can optimise their ads to attract more clicks and improve campaign performance.
DMT’s Take
CTR is a direct signal of ad relevance. A low CTR is rarely a targeting problem alone, it is usually the ad copy failing to match what the searcher actually wants.
Your Action Plan
- Test multiple ad copy variations against the same audience. Small copy changes often move CTR significantly.
- Review CTR alongside search term reports. A low CTR with irrelevant search terms points to a targeting fix, not a copy one.
Cost Per Click (CPC)
Cost per click measures the average amount spent for each click on your PPC ads. Monitoring CPC is essential for budget management and assessing the efficiency of your ad spend. A low CPC indicates that you are acquiring clicks at a reasonable cost, while a high CPC might indicate increased competition or inefficiencies in your campaign. Optimising CPC can involve refining keyword selection, improving ad relevance, or adjusting bidding strategies.
DMT’s Take
CPC on its own tells you what you are paying, not whether it is worth it, which is why it needs to be read alongside conversion data, not in isolation.
Your Action Plan
- Benchmark your CPC against industry averages for your specific keywords, not a generic figure.
- Improve Quality Score through ad relevance and landing page experience. It is the lever that actually lowers CPC.
Conversion Rate (CR)
Conversion rate measures the percentage of users who complete a desired action, such as making a purchase, filling out a form, subscribing to a newsletter, or contacting the business, after clicking on an ad. Tracking conversion rate is how you evaluate the effectiveness of your landing pages and overall campaign performance. By analysing CR, businesses can identify areas for improvement, optimise landing page design, and refine targeting to increase conversions.
DMT’s Take
A great ad with a weak landing page still fails, since conversion rate is where ad quality and landing page quality meet.
Your Action Plan
- Test landing page changes independently of ad changes. It isolates which one is actually driving conversion shifts.
- Align landing page content directly with the specific ad that sent the click. Mismatched messaging kills conversions.
Return on Ad Spend (ROAS)
ROAS quantifies the revenue generated for each dollar spent on advertising. It helps businesses understand the profitability of their PPC campaigns. A high ROAS indicates a successful campaign that generates significant returns, while a low ROAS suggests the need for adjustments. Monitoring ROAS enables businesses to allocate their advertising budget effectively and prioritise campaigns that yield the highest returns.
DMT’s Take
ROAS is the metric that tells you whether a campaign is genuinely profitable, not just active, which makes it the number that should drive budget reallocation.
Your Action Plan
- Calculate ROAS per campaign, not just account-wide. It reveals which campaigns deserve more budget.
- Reallocate spend toward your highest-ROAS campaigns rather than spreading budget evenly.
Return on Investment (ROI)
ROI measures the overall profitability of your PPC campaigns by comparing the revenue generated with the cost of running the ads. By calculating ROI, businesses can determine whether their PPC efforts are generating a positive or negative return. Tracking ROI allows businesses to allocate resources effectively and optimise campaigns to achieve maximum profitability.
DMT’s Take
ROI accounts for the full cost of running a campaign, not just ad spend, which makes it the more complete profitability picture than ROAS alone.
Your Action Plan
- Include management time and tools in your ROI calculation, not just raw ad spend.
- Review ROI on a consistent schedule, monthly at minimum, to catch a declining trend early.
Form Submissions, Phone Clicks, and Email Clicks
For Marley Flow, in business since 2005, tracking these three actions is how we could show that six months of SEO had lifted contact form submissions 550%, phone clicks 160% and email clicks 270%, on a 32.6% rise in organic traffic. Traffic alone would have undersold the result. Read the Marley Flow case study.
In addition to the aforementioned metrics, businesses should also track specific actions that indicate engagement and lead generation. Form submissions, phone clicks, and email clicks are vital metrics for measuring the effectiveness of your PPC campaigns in generating leads and initiating direct contact. By monitoring the number of form submissions, phone clicks, and email clicks resulting from your ads, you can evaluate the campaign's success in driving user interactions and capturing potential customers.
In the world of PPC advertising, success lies in tracking and analysing the right metrics. By monitoring key PPC metrics such as click-through rate, cost per click, conversion rate, return on ad spend, quality score, return on investment, form submissions, phone clicks, and email clicks, businesses can gain valuable insights into the effectiveness of their campaigns. These metrics provide the necessary data to make informed decisions, refine strategies, and optimise campaigns for better performance and higher returns. Remember, successful PPC campaigns require continuous monitoring and adjustments, so the data is what tells you which change worked. Start tracking these key metrics today and get more from every dollar of PPC spend.
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DMT’s Take
For service businesses especially, clicks and conversions on their own miss the direct-contact actions that often represent your highest-intent leads.
Your Action Plan
- Track form submissions, phone clicks and email clicks as distinct conversion actions, not lumped together.
- Set up call tracking if phone enquiries are a meaningful part of your lead flow. Untracked calls hide real campaign value.
Bilal Alwan
Bilal Alwan is the founder and director of Digital Marketing Tribe, an Adelaide and Sydney based digital marketing agency. He leads DMT’s SEO and AI search work, helping Australian businesses stay visible as search shifts from ten blue links to AI-generated answers.
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