Google Ads Data Analysis and Monitoring for Beginners

TL;DR:

• Track the right KPIs: Conversions, CVR, CTR, CPC, impression share, and auction insights.
• Conversion tracking is essential for monitoring campaign success.
• Ad Rank is determined by bid, ad quality, landing page experience, and user context — not just Quality Score × CPC.
• Use Act-On integration to gain insights and optimize campaigns efficiently.
  
  
  

Introduction

When I began using Google Ads at my first job out of college, I was scared senseless. I knew I’d seen those distracting, cumbersome ads litter my search engine results page (SERP) and disrupt the content I was trying to read, but I didn’t understand their purpose or that anyone actually clicked on them — let alone converted.

I didn’t see the value in pay-per-click (PPC) advertising, and I couldn’t understand why my employer was so committed to spending on it. Worse yet, I was tasked with finding a way to get people to click on those ads and make decisions that guided them toward a purchase!

I had a lot to learn, but as I slogged through the training suite in what was then called Google AdWords, I slowly realized the potential of this digital marketing channel. Less than a year later, our monthly leads from PPC had nearly tripled.

Moral of the story: Just because something is difficult or you don’t immediately see its value doesn’t mean you should abandon it. Instead, dig in deep to learn how to improve your business and increase revenue — which is exactly what we’ll do in this guide.

No other marketing strategy lends itself to data collection, interpretation, and optimization better than Google Ads. Today, we’ll cover essential PPC key performance indicators, how to track them, and how to leverage past performance for future success.

Google Ads Data Metrics Marketers Should Track

Tracking and monitoring metrics is critical for any marketing campaign, and Google Ads is especially data-rich. Reviewing your campaigns frequently allows you to seize opportunities and avoid wasted spend.

When planning campaigns, determine which metrics to track from the outset. Aligning Google Analytics and Google Ads before launch ensures you capture the most important data and can demonstrate your campaigns’ value to stakeholders.

Here are the most important metrics to track in 2025:

1) Conversions (and Conversion Rate)

Google Ads conversions are the most important PPC KPIs, because clicks don’t guarantee revenue. In B2B marketing, form fills are the most common conversion. For B2C, purchases or sign-ups may be the key metric.

You should track:

• Number of conversions
• Cost per acquisition (CPA) – divide total spend by conversions
• Conversion rate (CVR) – conversions divided by clicks
  
  
  

Tracking these metrics lets you identify high-performing campaigns, pause underperformers, and optimize for ROI. Conversion tracking should be implemented at the outset to capture reliable data.

2) Click-Through Rate (CTR) and Clicks

Clicks are important because they drive traffic to your landing pages. CTR (clicks ÷ impressions) is a key quality signal used by Google’s auction algorithm, along with ad relevance, landing page experience, and user context.

While historically CTR was often considered the most important component of Quality Score, Google now evaluates multiple real-time signals to determine Ad Rank, not a single factor. Still, improving CTR generally correlates with better ad performance.

3) Impressions and Impression Share

An impression registers every time your ad appears. While high impressions alone don’t indicate success, impression share (your impressions ÷ eligible impressions) shows how much of the available market you’re capturing.

Monitoring impression share helps you:

• Identify opportunities for growth
• Adjust bids to compete more effectively
• Avoid missing potential audience reach
  
  
  

4) Ad Rank and Auction Insights (Optional KPI)

Instead of focusing solely on average ad position (which is less relevant in 2025), pay attention to Ad Rank and auction insights.

• Ad Rank determines which ads appear and in what order. It is calculated in real time using a combination of your bid, expected CTR, ad relevance, landing page experience, and other contextual signals.
• Google no longer publishes a simple formula like “Ad Rank = Max CPC × Quality Score.” That was a historical heuristic; today, the real-time auction factors matter most.
• Use auction insights to compare your performance against competitors and identify areas to improve.
  
  
  

Setting Up Conversion Tracking in Google Ads

Many new PPC marketers fail to set up conversion tracking properly, which prevents accurate monitoring. Here’s how to do it:

1. From your Google Ads dashboard, click Tools & Settings → Conversions.
2. Create a new conversion type: sales, leads, app installs, calls, or imported conversions.
3. Name the conversion and select a category (Purchase, Lead, Sign-up, View of a key page, or Other).
4. Assign a value per conversion (fixed or dynamic) and specify whether to count every conversion or just one per interaction.
5. Set your conversion window to ensure proper attribution.
   
   

Next, install the conversion tracking code on your site:

• Global site tag: Place on all pages for remarketing and baseline tracking.
• Event snippet: Place on specific pages to track individual conversions.
  
  

This setup usually takes 10–15 minutes and ensures you capture the most important KPIs automatically.

Easily Integrate Your Google Ads Account with Act-On

Well-targeted PPC campaigns are effective for delivering content to the right audience. But without monitoring key metrics — conversions, CTR, CPC, and impression share — optimization is impossible, and you risk wasted spend.

Act-On’s marketing automation software integrates seamlessly with Google Ads, giving you visibility into:

• Which search terms potential customers are using
• How campaigns perform across demographics and behaviors
• Real-time performance reporting for optimization
  
  
  

Summary

Google Ads can be a powerful driver of leads and revenue, but success depends on tracking the right metrics and setting up accurate conversion measurement from the start. In 2025, marketers should focus on conversion data, CTR, impression share, and auction insights rather than outdated metrics like average position. Understanding how Google’s real-time auction evaluates ad quality — including ad relevance, expected CTR, and landing page experience — allows you to optimize campaigns more effectively and avoid wasted spend. With proper tracking and tools like Act-On’s Google Ads integration, you can turn raw performance data into actionable insights that strengthen targeting, improve ROI, and drive sustained growth.

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