What metrics do you consider most important when evaluating the success of an SEM campaign?

Evaluating the success of an SEM campaign involves focusing on a variety of key metrics that offer insights into different aspects of the campaign's performance. Click-through rate (CTR) is one of the most important, as it measures how well your ads are resonating with users by showing the percentage of users who clicked on your ad after seeing it. A high CTR indicates that your ad copy, keywords, and targeting are well-aligned with user intent. Cost-per-click (CPC) is another critical metric, especially in relation to your overall budget, as it helps determine whether your bidding strategy is cost-effective. Conversion rate is arguably the most important metric for assessing whether the campaign is driving valuable actions, such as purchases or lead generation. Additionally, return on ad spend (ROAS) gives a clear picture of the financial return you’re getting for every dollar spent, providing insight into the profitability of your campaign. Secondary metrics such as quality score, impression share, and bounce rate can also provide deeper insights into areas of improvement, helping you optimize for better performance.

As most people already described above, the most basic metrics you monitor are:

The Click-Through Rate (CTR)
Cost per Click (CPC)
Conversion Rates
Quality Score
Impression share 
Top of the page rate
Abs. top of the page rate

Again, the metrics above are the basic necessities, however I would never recommend running a Google Ads campaign without proper conversion tracking set up. Once conversion tracking is set up your main Performance Indicators will be:

Cost Per Acquisition (CPA), this is also known as Cost per Conversion.
Return on Ad Spend (ROAS), this is mostly described in percentages.

These two above values mean nothing if you don't compare it with the actual close rates or Profit on Ad Spent.

If you want to be serious about your campaigns you should also know how much margin you have per sale/close.

So if you have ROAS as your main metric, make sure you also exclude shipping, taxes and everything that would also to be counted towards a more realistic result.

Another killer of metrics is double conversion measurement, please make this a priority to fix.
 

When evaluating the success of an SEM campaign, I focus on these key metrics:

1. Click-Through Rate (CTR): Indicates how well your ads are attracting clicks. A high CTR shows that your ad copy and targeting are resonating with your audience.

2. Conversion Rate: Measures the percentage of clicks that lead to a desired action, like a purchase or sign-up. It’s a direct indicator of how effective your campaign is at driving results.

3. Cost Per Conversion (CPC): Tells you how much you’re spending to achieve each conversion. Keeping this cost low while maintaining a high conversion rate is crucial for a successful campaign.

4. Return on Ad Spend (ROAS): This metric shows the revenue generated for every dollar spent on the campaign. It’s a clear measure of profitability.

5. Quality Score: Google’s measure of how relevant your ads, keywords, and landing pages are. A higher Quality Score can lower your costs and improve your ad positions.

6. Impressions and Impression Share: Tracks how often your ads are shown and how much of the total available impressions your ads are capturing. It helps gauge your visibility in the market.

7. Bounce Rate: The percentage of visitors who leave your site after viewing only one page. A high bounce rate may indicate that your landing page needs optimization.

By closely monitoring these metrics, I can assess the overall performance of an SEM campaign and make data-driven adjustments to maximize its effectiveness.

The basic metrics that any competent Google Ads account manager should monitor are:

• Impressions
• Clicks
• Cost
• Average Cost Per Click (CPC)
• Click-Through Rate (CTR)
• Conversions
• Conversion Rate
• Cost Per Conversion

If E-commerce

• Conversion Value
• Conversion Value / Cost (ROAS)

If you have a GOOD Google Ads account manager, you might find them also monitoring:

• Search Impression Share
• Search Lost IS Rank
• Search Lost IS Budget
• Click Share

Every 3-6 months, you also want to check your secondary-level bidding adjustments:

• Devices
• Locations
• Audiences
• Ad Schedule

—

Off the top of my head, those are the main go-to’s.

But it does come down to what your business goals are. 

If you want more leads, you may need to focus more so on conversion metrics to ensure you’re generating conversions, converting regularly and ensuring that you’re not overpaying for leads.

If it’s more e-commerce, then you’ll also want to focus on (as mentioned above) those conversion metrics, but also your ROAS and products, maybe even going off-platform slightly and doing more work inside Google Merchant Center.

There’s an awful lot to look at, which is why I’m the co-host of the YouTube podcast The PPC Cave (go on, give it a Search and Subscribe!) feel free to watch and subscribe where we discuss a lot of important metrics, campaign strategies and more.

When managing SEM campaigns, it's crucial to focus on metrics that align with your specific goals. By focusing on the right metrics for your specific campaign goals, you can make data-driven decisions to optimize performance and maximize ROI. Remember to regularly review and adjust your strategy based on these insights. Here are the key metrics to track based on different campaign objectives.

For campaigns aimed at generating conversions, leads, sales, or phone calls, prioritize:

• Return on Ad Spend (ROAS)
• Conversion Value
• Conversion Rate
• Cost Per Conversion

For newly launched campaigns with limited, insufficient conversion data, focus on these metrics to ensure you're attracting quality traffic and optimizing ad relevance before shifting to conversion-centric metrics:

• Click-Through Rate (CTR)
• Cost Per Click (CPC)
• Average Position
• Impression Share
• Quality Score

If your goal is to build brand awareness use these metrics to gauge the visibility and impact of your ads on your target audience:

• Impressions
• Reach
• Frequency
• Click-Through Rate (CTR)
• View-Through Rate (for video ads)

Regardless of campaign goals, always monitor these universal metrics to ensure overall campaign health and efficiency:

• Budget Utilization
• Quality Score
• Search Impression Share

A lot of them can be important, but if your campaigns aren't generating revenue (conversion value), and conversion volume (opportunities to make more sales) then you've got work to do.

Looking at the other metrics can help diagnose why the above might be happening, and identify room to scale.

Here's a list overview of some of the most important metrics when evaluating the success of an SEM campaign:

• Click-Through Rate (CTR)
• Cost Per Click (CPC)
• Conversion Rate
• Cost Per Acquisition (CPA)
• Return on Ad Spend (ROAS)
• Impression Share
• Quality Score
• Bounce Rate
• Ad Extensions Performance