Top Paid Ads KPIs Every Business Should Track

Running paid advertising campaigns without tracking the right numbers is a quick way to burn through your budget. You might see clicks roll in, but without the right KPIs in place, you won’t know whether those clicks are actually driving growth.

At the end of the day, revenue and profitability are the true measure of paid ads, but the metrics below act as reliable signals to show whether your campaigns are really delivering value.

Which KPIs to Track and Why

A variety of metrics can be measured in PPC campaigns, but not all of them directly impact business outcomes. Below are the top paid ads KPIs that are worth your attention.

Click-Through Rate (CTR)

CTR shows how often people click on your ad after it is presented to them. A strong CTR means your ad copy and targeting are resonating with your intended audience. A low CTR is a signal to refresh your messaging, improve targeting, or test new ad formats.

Cost Per Click (CPC)

CPC tracks how much you’re paying for ad clicks. While a lower CPC probably looks attractive, it doesn’t represent the whole story. Effective PPC campaign management is all about striking a balance between cost efficiency and lead quality.

Conversion Rate (CVR)

A click is only useful if it leads to an action. CVR measures the percentage of people interacting with your ad that lead to a conversion. This action can be anything from filling out a form to scheduling a call or making a purchase. Optimising landing pages, ad relevance, and calls to action will improve your KPI.

Cost Per Acquisition (CPA)

CPA links ad spend directly to customer acquisition. It answers the question every business leader asks: “What does it cost to win a customer?” A CPA that is consistently healthy shows that your campaigns are well-optimised and growing sustainably.

Return on Ad Spend (ROAS)

ROAS tells you whether or not your ads are generating revenue. It compares revenue generated against the amount spent on ads. If your ROAS is strong, your campaigns are performing effectively. If not, it’s time to optimise your campaigns.

Impression Share

This KPI indicates how often your ad appears compared to competitor ads. This can be thought of as your visibility score in the auction. If your Google Ad impression share is low, it’s likely that your budget, bids, or targeting needs adjustment.

Lifetime Value (LTV) vs. Customer Acquisition Cost (CAC)

LTV and CAC are a powerful KPI pairing. LTV tells you how much a customer is worth over time, while CAC measures how much it costs to acquire the customer. If your LTV significantly outweighs CAC, your paid ads strategy is scalable. If not, it is probably time to adjust. 

Why These KPIs Matter

Without a clear view of these paid media KPIs, businesses risk wasting budget, missing growth opportunities, or scaling campaigns that don’t deliver. For both large and small businesses, monitoring these KPIs enables you to make more informed decisions, increase ROI, and position yourself for long-term success.

At Glassbox, we help brands cut through the noise of vanity metrics and zero in on KPIs that truly matter. Contact us today to turn your paid ad data into measurable growth.