Microsoft Clarity

How can I measure the success of my Google Marketing Campaigns using an Analytics Dashboard?

To effectively measure the success of your Google Ads campaigns against your investment, you should focus on several key metrics and methodologies that provide insights into performance and return on investment (ROI).

Count Key Metrics

1. Click-Through Rate (CTR): CTR is the percentage of people who click on an ad after seeing it. This metric shows how often people click on your ad after seeing it. The formula is:

CTR= number of clicks ÷ number of Impressions x 100%

Example: If an ad was shown 10,000 times and received 200 clicks, the CTR would be:

CTR= 200 Clicks ÷ 10,000 impressions x100%= 2%

Note: A higher CTR suggests that your ad is relevant to the audience.

2. Conversion Rate: The Conversion Rate measures the percentage of users who take a desired action after clicking your ad, such as making a purchase or signing up for a newsletter. The formula is:

Conversion rate= Number of Conversion÷ Number of click or Visitors X 100%

Example: If 500 people clicked on your ad, and 25 made a purchase, the conversion rate would be:

Conversion rate= 25 purchases÷ 500 People x 100% = 5%

Note: A high conversion rate indicates effective ad targeting and messaging.

3. Cost per click (CPC): CPC is the amount you pay for each click on your ad. Monitoring CPC helps evaluate the efficiency of your ad spending. The formula is:

CPC= Total cost of the campaign ÷ Total number of clicks

Example: If you spent $300 on a campaign and received 1,000 clicks, the CPC would be:

CPC= $300÷ 1000 Clicks= $0.30

4. Cost per acquisition (CPA): CPA is the cost associated with acquiring a customer. Knowing your CPA helps you determine if your ad spend aligns with your campaign budget per acquired customer. The formula is:

CPA= Total Cost÷ Number of Conversion

Example: If you spent $500 on a campaign and acquired 25 customers, the CPA would be:

CPA= $500÷ 25=$20 dollars per customer.

Note:CPA should be lower than the profit generated by each customer.

5. Return on Ad Spend (ROAS): This metric calculates the revenue generated for every dollar spent on advertising. It helps assess the profitability of your campaigns. The formula is:

ROAS= Revenue from Ads ÷ Cost of Ads

Revenue from Ads: The total revenue generated from your advertising campaigns.

Cost of Ads: The total amount spent on the ads.

Example: If you made $10,000 in revenue from ads and spent $2,000 on those ads, ROAS would be:

ROAS=$10,00÷2,000=$5.

Note:This means you earned $5 for every $1 spent on advertising.

Absolute Key Metrics

1. Total Users: refer to the number of unique individuals who have visited a website or used an app during a specified period. This metric counts each person only once, even if they visit multiple times.

Formula: It is counts the number of unique devices or user identifiers that interact with your site.

Example: If 1,000 different people visit your website in August, your Total Users for August would be 1,000.

2. New Users: represent the number of first-time visitors to your website or app within a specific period. These users have not interacted with your website before (within the tracking timeframe, usually tied to cookie data).

Formula: It can be expressed as:  New Users=Total Users−Returning Users

Example: If you had 1,000 Total Users in August, and 600 of them were visiting for the first time, your New Users for August would be 600.

3. Traffic Sources

Traffic Sources indicate where your website’s visitors are coming from. It includes categories like Organic Search, Direct, Referral, Social, and Paid Search.

Analytics tools categorize the traffic based on the referral information:

• Organic Search: Users who arrive through unpaid search engine results.
• Direct: Users who type your URL directly into their browser.
• Referral: Users who click on a link from another website.
• Social: Users who come from social media platforms.
• Paid Search: Users who click on paid advertisements in search engines.

Example: If in August, 50% of your visitors came from Organic Search, 20% from Direct, 15% from Social, 10% from Referral, and 5% from Paid Search, these would be your traffic sources breakdown.

Example: If your website had 1,000 sessions in August, and 400 of those sessions resulted in users leaving after viewing just one page, your Bounce Rate would be 40%.

4. Average Session Duration

Average Session Duration is the average length of time that users spend on your website during a session.

Formula: Average Session Duration=Total Number of Sessions ÷Total Duration of All Sessions (in seconds)​.

Example: If the total duration of all sessions in August was 200,000 seconds, and there were 1,000 sessions in total, the Average Session Duration would be 200 seconds (or 3 minutes and 20 seconds).

5. Top Landing Page

The Top Landing Page is the first page that most users visit when they arrive at your website. It is a key metric for understanding which pages are attracting the most traffic.

Analytics tools rank landing pages based on the number of sessions that start on each page.

Example: If your website had 10,000 sessions in August, and 3,000 of them started on your “Homepage,” then the “Homepage” would be your Top Landing Page for that month.

6. User Behavior Flow

User Behavior Flow is a visual representation of the path users take through your website, from the landing page to exit pages. It helps identify where users drop off or where they engage most.

Formula: There isn’t a direct formula, as it’s a visual tool in analytics platforms that maps out the user journey based on their interactions with the website.

Example: In Google Analytics, you might see that users typically start on your “Homepage,” then 50% navigate to the “About Us” page, and from there, 30% move to the “Contact Us” page. This visual flow would highlight common paths and potential bottlenecks.