Mastering Google Ads requires a deep understanding of key performance metrics. This comprehensive guide breaks down all 40 essential Google Ads formulas, complete with real-world app and game examples and actionable optimization techniques. Whether you’re tracking CTR, CPA, ROAS, or Quality Score, this resource provides the exact calculations and strategies you need to reduce costs, boost conversions, and maximize ROI. Learn how to interpret each metric, apply data-driven optimizations, and scale your campaigns efficiently—all in one place.
(Disclaimer Note: All examples use fictional data for educational purposes.)
Why This Guide?
- Step-by-Step Formulas: Clear explanations with app/game-specific examples
- Proven Optimization Tips: Lower CPA, increase ROAS, and improve ad rank
- Campaign Benchmarks: Industry standards to measure your performance
- No Fluff, Just Data: Straightforward metrics to refine your strategy
Perfect for: Mobile marketers, game developers, app advertisers, and performance-driven teams.
Table of Contents
- Core Metrics (CTR, CPM, CPA, CVR)
- Revenue & Profitability (ROAS, ROI, Gross Profit)
- Advanced Optimization (Quality Score, Ad Rank, Impression Share)
- Google Analytics Integration (Bounce Rate, Session Duration)
- Specialized Formulas (Invalid Click Rate, Break-Even ROAS)
Key Takeaway: Bookmark this guide as your go-to reference for data-driven Google Ads success.
Click-Through Rate (CTR)
What is CTR?
Click-Through Rate (CTR) is a key advertising metric that shows how often people click on your ad after seeing it. It helps you measure the effectiveness and relevance of your ad creatives.
CTR Formula
CTR = Clicks / Impressions × 100
How to Calculate CTR
To calculate CTR, divide the total number of clicks by the total number of impressions, then multiply the result by 100 to express it as a percentage.
For Example
Game – Thief Puzzle
CTR = 1200 / 20000 × 100 = 6%
App – Photo Editor Pro
CTR = 300 / 10000 × 100 = 3%
How to Optimize CTR
To improve your CTR, consider the following steps:
1. Target the Right Audience
Make sure your ads are shown to users who are genuinely interested in your game or app.
2. Improve Ad Creatives
Use high-quality visuals and a clear call-to-action (CTA) such as “Install Now” or “Play Free.”
3. A/B Test Your Ad Copy
Experiment with different headlines and descriptions to find which version performs best.
4. Optimize Ad Placement
Analyze which ad placements (rewarded video, interstitial, banner, etc.) are driving better results and focus your budget there.
5. Localize Your Ads
Adapt your ad creatives to match the language and cultural context of your target regions.
Cost Per Mille (CPM)
What is CPM?
Cost Per Mille (CPM) is an advertising metric that shows how much you pay for 1,000 ad impressions. It is commonly used in brand awareness and display campaigns to measure cost efficiency.
CPM Formula
CPM = Cost / 1000 Impressions
How to Calculate CPM
To calculate CPM, divide the total cost of the campaign by the number of impressions, then multiply the result by 1,000.
For Example
Game – Car Rush
CPM = $60 / 20,000 impressions × 1000 = $3
App – Fitness Tracker Pro
CPM = $120 / 40,000 impressions × 1000 = $3
How to Optimize CPM
To reduce your CPM and improve cost efficiency, follow these strategies:
1. Improve Ad Relevance
Higher relevance scores from platforms like Google Ads or Meta can reduce CPM.
2. Target High-Quality Audiences
Focus on users who are more likely to engage with your ad. Refine interests, behaviors, and location targeting.
3. Enhance Ad Creatives
Use eye-catching visuals and strong messaging that improves engagement, leading to better delivery at a lower cost.
4. Use Automated Bidding Smartly
Platforms offer smart bidding strategies that can optimize for the best cost-performance balance.
5. Monitor and Adjust Placements
Remove underperforming placements and shift your budget to the ones that offer better reach at a lower CPM.
Cost Per Acquisition (CPA)
What is CPA?
Cost Per Acquisition (CPA) is a key performance metric that measures how much it costs to get one user to complete a desired action—such as installing an app, making a purchase, or signing up. It helps you understand the return on your ad spend.
CPA Formula
CPA = Total Ad Cost / Total Conversions
How to Calculate CPA
To calculate CPA, divide the total advertising cost by the number of successful conversions (e.g., installs, sign-ups, or purchases).
For Example
Game – Legend of Fireball
CPA = $500 / 250 installs = $2 per install
App – Budget Manager Pro
CPA = $300 / 100 sign-ups = $3 per sign-up
How to Optimize CPA
To lower your CPA and improve campaign profitability, apply the following strategies:
1. Focus on High-Intent Audiences
Target users more likely to convert by using refined demographics, interests, and behaviors.
2. Use Conversion-Optimized Campaigns
Set your campaigns to optimize for actions like “Install” or “Purchase” instead of just impressions or clicks.
3. Improve Landing Page Experience
Ensure your app store listing or landing page is fast, relevant, and convincing to encourage conversions.
4. A/B Test Creatives and Messaging
Continuously test different ad visuals and calls-to-action to find the versions that convert best.
5. Monitor Conversion Funnel
Track every step from click to conversion. Identify and fix drop-offs to increase the total number of conversions without raising the cost.
Conversion Rate (CVR)
What is CVR?
Conversion Rate (CVR) measures the percentage of users who completed a desired action—such as an app install, purchase, or sign-up—after clicking on your ad. It helps evaluate how effective your ads and landing experience are at turning interest into action.
CVR Formula
CVR = Conversions / Clicks
How to Calculate CVR
To calculate CVR, divide the number of conversions by the number of ad clicks. The result is typically expressed as a percentage.
For Example
Game – ASMR Tippy Toe
CVR = 400 installs / 4000 clicks = 10%
App – Language Learner Pro
CVR = 150 sign-ups / 3000 clicks = 5%
How to Optimize CVR
To increase your Conversion Rate, follow these proven strategies:
1. Align Ad Messaging with Landing Page
Ensure your ad promise matches what users see after clicking, whether it’s an app store page or website.
2. Target the Right Audience
Refine your targeting so your ads reach users who are more likely to take action.
3. Improve App Store or Website Experience
Use high-quality visuals, clear descriptions, and strong social proof (ratings/reviews) to boost trust and drive action.
4. Streamline the Conversion Flow
Reduce friction in the process—make installs, purchases, or sign-ups as quick and easy as possible.
5. Test Creatives Regularly
Run A/B tests on your visuals, ad copies, and call-to-action buttons to find the highest-performing combinations.
Cost Per Click (CPC)
What is CPC?
Cost Per Click (CPC) is the amount you pay each time a user clicks on your ad. It helps you understand how much each potential customer interaction costs in your advertising campaign.
CPC Formula
CPC = (Ad Rank of Competitor Below You / Your Quality Score) + 0.01
How to Calculate CPC
To calculate CPC in auction-based advertising platforms, divide the ad rank of the competitor below you by your own quality score, then add $0.01. This determines the minimum amount you need to pay per click to maintain your ad position.
For Example
Game – Doll Dressup
Competitor’s Ad Rank = 15
Your Quality Score = 5
CPC = (15 / 5) + 0.01 = 3.01
App – Cornhole League
Competitor’s Ad Rank = 10
Your Quality Score = 4
CPC = (10 / 4) + 0.01 = 2.51
How to Optimize CPC
To lower your CPC and get better value from your ad spend, consider these steps:
1. Improve Your Quality Score
Enhance your ad relevance, landing page experience, and expected click-through rate.
2. Use Relevant Keywords
Focus on keywords that closely match your product and audience intent.
3. Optimize Ad Copy and Creatives
Create compelling ads that attract more clicks without necessarily increasing bids.
4. Use Negative Keywords
Exclude irrelevant searches to avoid wasting clicks and budget.
5. Monitor Competitor Strategies
Regularly analyze competitor ads and bids to adjust your strategy accordingly.
Total Cost
What is Total Cost?
Total Cost represents the overall amount spent on your advertising campaign. It helps you understand the total budget consumed based on your clicks and cost per click.
Total Cost Formula
Total Cost = Clicks × CPC
How to Calculate Total Cost
To calculate Total Cost, multiply the total number of clicks your ad received by the average cost per click (CPC).
For Example
Game – Wizard Universe
Clicks = 1,000
CPC = $0.50
Total Cost = 1,000 × 0.50 = $500
App – Budget Manager Pro
Clicks = 2,500
CPC = $0.30
Total Cost = 2,500 × 0.30 = $750
How to Optimize Total Cost
To manage and optimize your total ad spend, consider the following:
1. Optimize CPC
Lower your cost per click by improving ad relevance and quality score.
2. Control Click Volume
Target the most relevant audience to reduce unwanted clicks.
3. Set Budget Limits
Use daily or campaign budgets to control overall spending.
4. Monitor Campaign Performance
Pause or adjust underperforming ads to avoid wasted spend.
5. Use Smart Bidding Strategies
Leverage automated bidding tools to get the best results within your budget.
Quality Score (QS)
What is Quality Score?
Quality Score (QS) is a rating from 1 to 10 that measures the overall quality and relevance of your ads, keywords, and landing pages. A higher QS means better ad performance and usually lower costs.
Factors That Affect Quality Score
- Expected Click-Through Rate (CTR): How likely users are to click your ad based on past performance.
- Ad Relevance: How closely your ad matches the user’s search intent or interests.
- Landing Page Experience: How useful and relevant your landing page is to users after they click your ad.
How Quality Score is Graded
Quality Score ranges from 1 (lowest) to 10 (highest). A higher score means your ads are more relevant and provide a better user experience, leading to lower CPC and better ad positions.
For Example
Game – Cornhole League
Expected CTR: Above average
Ad Relevance: High
Landing Page Experience: Good
Quality Score = 8
App – Language Learner Pro
Expected CTR: Average
Ad Relevance: Moderate
Landing Page Experience: Average
Quality Score = 5
How to Improve Quality Score
1. Increase Expected CTR
Use compelling ad copy and relevant keywords to attract more clicks.
2. Enhance Ad Relevance
Ensure your ads closely match the keywords and user intent.
3. Optimize Landing Page Experience
Create fast-loading, mobile-friendly pages with relevant content and clear calls-to-action.
4. Regularly Monitor and Adjust
Analyze performance data and update ads, keywords, and landing pages accordingly.
Ad Rank
What is Ad Rank?
Ad Rank is a value that determines your ad’s position on the search results page. It is calculated based on multiple factors and influences where your ad appears and whether it is shown at all.
Factors Affecting Ad Rank
- Maximum CPC Bid: The highest amount you are willing to pay per click.
- Quality Score (QS) at Auction Time: The quality rating of your ad during the auction.
- Ad Rank Threshold: Minimum rank needed for your ad to appear.
- Competitiveness of the Auction: How many advertisers are competing for the same keywords.
- Context of the Search Query: User’s device, location, time, and other search context.
- Ad Extensions and Formats: Additional information such as sitelinks, call buttons, or reviews that improve your ad.
How Ad Rank is Used
Ad Rank determines your ad’s position on the page. Higher Ad Rank means a better position and more visibility. It also affects the actual CPC you pay—sometimes you pay less than your max bid if your Ad Rank is strong.
For Example
Game – Doll Dressup
Max CPC: $2.00
Quality Score: 8
Ad Rank Threshold: 10
Competitiveness: High
Ad Extensions: Sitelinks, Callouts
Resulting Ad Rank: 16
App – Photo Editor Pro
Max CPC: $1.50
Quality Score: 6
Ad Rank Threshold: 8
Competitiveness: Medium
Ad Extensions: Sitelinks
Resulting Ad Rank: 12
How to Improve Ad Rank
1. Increase Max CPC Bid
Bid competitively while maintaining profitability.
2. Improve Quality Score
Focus on ad relevance, expected CTR, and landing page experience.
3. Use Ad Extensions
Add relevant extensions to increase ad visibility and improve user engagement.
4. Optimize for Search Context
Target ads based on user location, device, and timing.
5. Monitor Competitor Activity
Adjust bids and creatives based on auction competition.
Return On Ad Spend (ROAS)
What is ROAS?
Return On Ad Spend (ROAS) measures the revenue generated for every dollar spent on advertising. It helps you evaluate the effectiveness and profitability of your ad campaigns.
ROAS Formula
ROAS = Conversion Value / Cost of Ads
How to Calculate ROAS
To calculate ROAS, divide the total value generated from conversions by the total advertising cost.
For Example
Game – Thief Puzzle
Conversion Value = $2,000
Cost of Ads = $500
ROAS = 2000 / 500 = 4 (Meaning $4 earned for every $1 spent)
App – Budget Manager Pro
Conversion Value = $1,500
Cost of Ads = $750
ROAS = 1500 / 750 = 2 (Meaning $2 earned for every $1 spent)
How to Optimize ROAS
1. Increase Conversion Value
Focus on high-value users and upsell opportunities.
2. Reduce Advertising Cost
Optimize bids, targeting, and ad creatives to lower spending without sacrificing results.
3. Improve Campaign Targeting
Reach audiences more likely to generate revenue.
4. Use Conversion Tracking
Accurately track all conversion actions to measure true return.
5. Test and Refine Ads
Continuously improve ad quality to boost conversions and revenue.
Return On Investment (ROI)
What is ROI?
Return On Investment (ROI) measures the profitability of your advertising by comparing the revenue generated against the total costs involved. It shows how much profit you earn for every dollar spent on ads and goods.
ROI Formula
ROI = Conversion Value – (Cost of Ads + Cost of Goods Sold)
How to Calculate ROI
To calculate ROI, subtract the combined costs of advertising and goods sold from the total conversion value.
For Example
Game – Legend of Fireball
Conversion Value = $3,000
Cost of Ads = $800
Cost of Goods Sold = $1,200
ROI = 3000 – (800 + 1200) = $1,000 profit
App – Language Learner Pro
Conversion Value = $2,000
Cost of Ads = $700
Cost of Goods Sold = $900
ROI = 2000 – (700 + 900) = $400 profit
How to Optimize ROI
1. Increase Conversion Value
Enhance product pricing, upselling, or cross-selling to boost revenue.
2. Reduce Advertising Costs
Optimize ad targeting and bidding strategies to spend efficiently.
3. Lower Cost of Goods Sold
Improve production or sourcing efficiency to reduce expenses.
4. Improve Conversion Rates
Enhance ad and landing page performance to increase sales volume.
5. Track All Relevant Costs
Include all direct costs to get an accurate ROI measurement.
Average Cost Per Click (Avg. CPC)
What is Avg. CPC?
Average Cost Per Click (Avg. CPC) is the average amount you pay for each click on your ad. It helps you understand how much each click costs on average across your campaign.
Avg. CPC Formula
Avg. CPC = Total Cost of Clicks / Total Clicks
How to Calculate Avg. CPC
To calculate Avg. CPC, divide the total cost spent on clicks by the total number of clicks received.
For Example
Game – Car Rush
Total Cost of Clicks = $600
Total Clicks = 1,200
Avg. CPC = 600 / 1,200 = $0.50
App – Photo Editor Pro
Total Cost of Clicks = $450
Total Clicks = 900
Avg. CPC = 450 / 900 = $0.50
How to Optimize Avg. CPC
1. Improve Quality Score
Better ads and landing pages can lower your average CPC.
2. Refine Keyword Targeting
Focus on keywords that bring relevant traffic at lower costs.
3. Use Negative Keywords
Exclude irrelevant searches to avoid unnecessary clicks.
4. Optimize Bids
Adjust bids strategically for better cost efficiency.
5. Monitor Competitors
Analyze competitor bids and adjust your strategy accordingly.
Impression Share (IS)
What is Impression Share?
Impression Share (IS) shows the percentage of times your ad was shown out of the total eligible opportunities. It helps you understand how often your ads appear compared to the total possible impressions.
Impression Share Formula
IS = Impressions / Total Eligible Impressions
How to Calculate Impression Share
To calculate IS, divide the number of times your ad was shown (impressions) by the total number of times it was eligible to appear.
For Example
Game – Wizard Universe
Impressions = 8,000
Total Eligible Impressions = 10,000
IS = 8,000 / 10,000 = 80%
App – Budget Manager Pro
Impressions = 5,000
Total Eligible Impressions = 7,500
IS = 5,000 / 7,500 = 66.7%
How to Improve Impression Share
1. Increase Your Budget
Ensure your campaign budget is sufficient to compete in auctions.
2. Raise Your Bids
Bid higher to win more auctions and get more impressions.
3. Improve Quality Score
Better ad relevance and landing pages can increase your ad rank.
4. Expand Keyword Targeting
Add relevant keywords to increase eligible impressions.
5. Optimize Campaign Settings
Adjust targeting and scheduling to maximize visibility.
Absolute Top Impression Share (ATIS)
What is Absolute Top Impression Share?
Absolute Top Impression Share (ATIS) measures the percentage of times your ad appeared in the very first position above all other ads, compared to the total times it was eligible to appear at the top. This metric is mainly used for shopping ads.
ATIS Formula
ATIS = Absolute Top Impressions / Total Eligible Top Impressions
How to Calculate ATIS
To calculate ATIS, divide the number of times your ad appeared in the absolute top position by the total number of times your ad was eligible to appear in that position.
For Example
Shopping Ad – Electronics Store
Absolute Top Impressions = 3,500
Total Eligible Top Impressions = 5,000
ATIS = 3,500 / 5,000 = 70%
Shopping Ad – Sports Gear Shop
Absolute Top Impressions = 2,200
Total Eligible Top Impressions = 4,000
ATIS = 2,200 / 4,000 = 55%
How to Improve Absolute Top Impression Share
1. Increase Your Bids
Higher bids can help secure the top ad position.
2. Optimize Product Feed
Ensure product titles, descriptions, and images are highly relevant and appealing.
3. Improve Quality Score
Better ad relevance and user experience contribute to higher ad rank.
4. Use Competitive Pricing
Competitive prices can improve ad performance and visibility.
5. Monitor Auction Insights
Track competitor activity to adjust bids and strategies effectively.
Interaction Rate
What is Interaction Rate?
Interaction Rate measures how often users interact with your ad after seeing it. This includes any engagement such as clicks, video views, or other interactive actions, relative to the total number of impressions.
Interaction Rate Formula
Interaction Rate = Total Interactions / Total Impressions
How to Calculate Interaction Rate
To calculate Interaction Rate, divide the total number of user interactions by the total number of times your ad was shown (impressions).
For Example
Game – Ice Scream
Total Interactions = 1,200
Total Impressions = 20,000
Interaction Rate = 1,200 / 20,000 = 6%
App – Language Learner Pro
Total Interactions = 500
Total Impressions = 15,000
Interaction Rate = 500 / 15,000 = 3.3%
How to Improve Interaction Rate
1. Create Engaging Ads
Use compelling visuals and clear calls-to-action.
2. Target Relevant Audiences
Reach users more likely to interact with your ads.
3. Test Different Formats
Try video ads, interactive ads, or carousel ads.
4. Optimize Ad Placement
Place ads where users are more likely to engage.
5. Monitor and Refine
Analyze performance and adjust creative or targeting accordingly.
Average Cost Per Mille (Avg. CPM)
What is Avg. CPM?
Average Cost Per Mille (Avg. CPM) is the average cost you pay for every 1,000 ad impressions. It helps you understand how much it costs to show your ad to 1,000 viewers.
Avg. CPM Formula
Avg. CPM = Average Cost / 1,000 Impressions
How to Calculate Avg. CPM
To calculate Avg. CPM, divide the total advertising cost by the number of impressions (in thousands).
For Example
Game – Cornhole League
Average Cost = $400
Impressions = 200,000
Avg. CPM = 400 / (200,000 / 1,000) = 400 / 200 = $2
App – Fitness Tracker Pro
Average Cost = $150
Impressions = 50,000
Avg. CPM = 150 / (50,000 / 1,000) = 150 / 50 = $3
How to Optimize Avg. CPM
1. Improve Ad Quality
Better ads can reduce cost while maintaining impressions.
2. Target the Right Audience
Focus on audiences that matter to reduce waste.
3. Adjust Bids Strategically
Manage bids to control costs efficiently.
4. Use Frequency Capping
Limit how often users see your ad to avoid overspending.
5. Analyze Campaign Performance
Regularly review metrics to improve cost efficiency.
Average Cost Per Engagement (Avg. CPE)
What is Avg. CPE?
Average Cost Per Engagement (Avg. CPE) measures how much you pay on average for each user engagement with your ad, such as clicks, likes, shares, or video views.
Avg. CPE Formula
Avg. CPE = Average Cost / Total Engagements
How to Calculate Avg. CPE
To calculate Avg. CPE, divide the total advertising cost by the total number of user engagements.
For Example
Game – Doll Dressup
Average Cost = $500
Total Engagements = 2,000
Avg. CPE = 500 / 2,000 = $0.25
App – Budget Planner
Average Cost = $300
Total Engagements = 1,200
Avg. CPE = 300 / 1,200 = $0.25
How to Optimize Avg. CPE
1. Create Engaging Content
Develop ads that encourage more user interactions.
2. Target Relevant Audiences
Reach users who are more likely to engage with your ads.
3. Test Different Ad Formats
Use video, carousel, or interactive ads to increase engagement.
4. Optimize Bidding Strategy
Adjust bids to get better cost efficiency for engagements.
5. Monitor and Refine Campaigns
Regularly analyze engagement data and improve ads accordingly.
Average Cost Per View (Avg. CPV)
What is Avg. CPV?
Average Cost Per View (Avg. CPV) measures how much you pay on average for each video view of your ad. It helps you understand the cost efficiency of your video advertising campaigns.
Avg. CPV Formula
Avg. CPV = Total Cost / Total Video Views
How to Calculate Avg. CPV
To calculate Avg. CPV, divide the total amount spent on video ads by the number of video views received.
For Example
Game – Wizard Universe
Total Cost = $400
Total Video Views = 20,000
Avg. CPV = 400 / 20,000 = $0.02
App – Fitness Tracker Pro
Total Cost = $250
Total Video Views = 10,000
Avg. CPV = 250 / 10,000 = $0.025
How to Optimize Avg. CPV
1. Create Engaging Video Content
Produce videos that capture attention quickly.
2. Target Relevant Audiences
Show videos to users interested in your app or game.
3. Optimize Bidding Strategy
Adjust bids to maximize views at a lower cost.
4. Use Effective Ad Placement
Place ads where viewers are more likely to watch.
5. Monitor Performance
Regularly review video metrics and improve content accordingly.
View Rate (VR)
What is View Rate?
View Rate (VR) measures the percentage of ad impressions that resulted in video views. It shows how effectively your video ad captures viewers’ attention.
View Rate Formula
VR = Total Video Views / Impressions
How to Calculate View Rate
To calculate VR, divide the total number of video views by the total number of impressions your ad received.
For Example
Game – Ice Scream
Total Video Views = 15,000
Impressions = 100,000
VR = 15,000 / 100,000 = 15%
App – Language Learner Pro
Total Video Views = 8,000
Impressions = 50,000
VR = 8,000 / 50,000 = 16%
How to Improve View Rate
1. Create Engaging Video Content
Make videos that grab attention within the first few seconds.
2. Target the Right Audience
Show your ads to users interested in your content.
3. Use Compelling Thumbnails
Attractive thumbnails encourage viewers to watch.
4. Optimize Video Length
Keep videos concise and focused.
5. Test Different Video Formats
Try various styles to see what resonates best with your audience.
Search Absolute Top Impression Rate (Search ATIS)
What is Search Absolute Top Impression Rate?
Search Absolute Top Impression Rate (Search ATIS) measures the percentage of your search ads that appeared in the very first position above all other ads, relative to the total impressions your ad received.
Search ATIS Formula
Search ATIS = Absolute Top Impressions / Total Impressions
How to Calculate Search ATIS
To calculate Search ATIS, divide the number of times your ad appeared in the absolute top position by the total number of impressions your ad received.
For Example
Search Ad – Mobile Puzzle Game
Absolute Top Impressions = 4,000
Total Impressions = 10,000
Search ATIS = 4,000 / 10,000 = 40%
Search Ad – Productivity App
Absolute Top Impressions = 2,500
Total Impressions = 8,000
Search ATIS = 2,500 / 8,000 = 31.25%
How to Improve Search ATIS
1. Increase Your Bids
Higher bids can help you secure the top ad position.
2. Improve Quality Score
Better ad relevance and landing page experience boost ad rank.
3. Optimize Ad Copy
Make your ads more appealing and relevant.
4. Use Ad Extensions
Additional information can increase ad prominence.
5. Monitor Auction Insights
Understand competitor activity and adjust your strategy.
Search Top Impression Rate (Search TIS)
What is Search Top Impression Rate?
Search Top Impression Rate (Search TIS) measures the percentage of times your search ad appeared anywhere above the organic search results, relative to the total impressions your ad received. It shows how often your ad appears in a top position.
Search TIS Formula
Search TIS = Top Impressions / Total Impressions
How to Calculate Search TIS
To calculate Search TIS, divide the number of times your ad appeared in the top positions by the total number of impressions your ad received.
For Example
Search Ad – Racing Game
Top Impressions = 6,000
Total Impressions = 12,000
Search TIS = 6,000 / 12,000 = 50%
Search Ad – Meditation App
Top Impressions = 3,200
Total Impressions = 8,000
Search TIS = 3,200 / 8,000 = 40%
How to Improve Search TIS
1. Increase Your Bids
Raise bids to increase chances of appearing in top positions.
2. Enhance Quality Score
Improve ad relevance and landing page experience.
3. Optimize Ad Copy
Create more engaging and relevant ads.
4. Use Ad Extensions
Add extra information to increase ad visibility.
5. Monitor Competitor Strategies
Adapt your bidding and targeting based on auction insights.
Conversion Value Per Click
What is Conversion Value Per Click?
Conversion Value Per Click measures the average revenue or value generated from each click on your ad. It helps you understand how much value each user interaction is bringing to your business.
Conversion Value Per Click Formula
Conversion Value Per Click = Total Conversion Value / Total Ad Interactions
How to Calculate Conversion Value Per Click
To calculate this metric, divide the total value generated from conversions by the total number of clicks or ad interactions.
For Example
Game – Thief Puzzle
Total Conversion Value = $5,000
Total Ad Interactions (Clicks) = 1,000
Conversion Value Per Click = 5,000 / 1,000 = $5
App – Budget Planner Pro
Total Conversion Value = $3,600
Total Ad Interactions (Clicks) = 800
Conversion Value Per Click = 3,600 / 800 = $4.50
How to Improve Conversion Value Per Click
1. Optimize Landing Pages
Ensure landing pages are relevant and user-friendly.
2. Target High-Value Audiences
Focus on users more likely to convert with higher value.
3. Improve Ad Quality
Create ads that attract the right customers.
4. Use Conversion Tracking
Track and analyze conversions to adjust strategy.
5. Refine Bidding Strategy
Adjust bids to maximize value per click.
Value Per Conversion
What is Value Per Conversion?
Value Per Conversion measures the average revenue or value generated from each conversion. It helps you understand how much each completed action (like a purchase or signup) is worth to your business.
Value Per Conversion Formula
Value Per Conversion = Conversion Value / Number of Conversions
How to Calculate Value Per Conversion
To calculate this metric, divide the total conversion value by the total number of conversions.
For Example
Game – Car Rush
Conversion Value = $8,000
Number of Conversions = 400
Value Per Conversion = 8,000 / 400 = $20
App – Language Learner Pro
Conversion Value = $5,000
Number of Conversions = 250
Value Per Conversion = 5,000 / 250 = $20
How to Improve Value Per Conversion
1. Focus on High-Value Conversions
Encourage actions that generate more value.
2. Improve Product or Service Quality
Better offerings can increase conversion value.
3. Optimize Pricing Strategies
Adjust prices to maximize revenue per conversion.
4. Target High-Value Customers
Reach audiences more likely to make valuable conversions.
5. Use Data Analysis
Analyze conversion patterns to optimize campaigns.
Average Cart Size Formula
Avg. Cart Size = Total Products Sold / Total Number of Transactions
How to Calculate Average Cart Size
To calculate this metric, divide the total number of products sold by the total number of transactions.
For Example
Game – Legend of Fireball
Total Products Sold = 1,200
Total Transactions = 300
Avg. Cart Size = 1,200 / 300 = 4 products per transaction
App – Online Grocery Shop
Total Products Sold = 5,000
Total Transactions = 1,000
Avg. Cart Size = 5,000 / 1,000 = 5 products per transaction
How to Improve Average Cart Size
1. Offer Bundles or Discounts
Encourage customers to buy more items together.
2. Use Upselling and Cross-selling
Suggest related products during purchase.
3. Simplify the Checkout Process
Make it easier to add multiple items to the cart.
4. Promote Limited-time Offers
Create urgency to increase cart size.
5. Analyze Customer Behavior
Understand buying patterns to tailor offers.
Average Order Value (beta)
What is Average Order Value?
Average Order Value (AOV) measures the average revenue generated per order. It helps you understand how much, on average, customers spend each time they place an order.
Average Order Value Formula
Avg. Order Value = Revenue / Number of Orders
How to Calculate Average Order Value
To calculate AOV, divide the total revenue by the total number of orders received.
For Example
Game – Doll Dressup
Revenue = $10,000
Orders = 500
Avg. Order Value = 10,000 / 500 = $20
App – Fitness Tracker Pro
Revenue = $15,000
Orders = 750
Avg. Order Value = 15,000 / 750 = $20
How to Improve Average Order Value
1. Offer Product Bundles
Encourage customers to buy multiple items together.
2. Use Upselling and Cross-selling
Recommend higher-value or complementary products.
3. Provide Discounts on Minimum Purchase
Incentivize larger orders with discounts.
4. Improve User Experience
Make browsing and checkout smooth and easy.
5. Analyze Customer Data
Identify buying habits and tailor promotions.
Gross Profit (GP)
What is Gross Profit?
Gross Profit (GP) represents the amount of money your business earns after subtracting the cost of goods sold (COGS) from total revenue. It shows how much profit is made before accounting for other expenses.
Gross Profit Formula
GP = Revenue – Cost of Goods Sold (COGS)
How to Calculate Gross Profit
To calculate Gross Profit, subtract the total cost of producing or purchasing goods from your total revenue.
For Example
Game – Cornhole League
Revenue = $50,000
Cost of Goods Sold = $30,000
Gross Profit = 50,000 – 30,000 = $20,000
App – Budget Planner Pro
Revenue = $40,000
Cost of Goods Sold = $15,000
Gross Profit = 40,000 – 15,000 = $25,000
How to Improve Gross Profit
1. Increase Revenue
Boost sales through marketing and promotions.
2. Reduce Cost of Goods Sold
Negotiate better supplier prices or optimize production.
3. Improve Operational Efficiency
Streamline processes to lower costs.
4. Focus on High-Margin Products
Promote products with better profit margins.
5. Analyze Financial Data
Monitor costs and revenues regularly for improvements.
Engagement Rate
What is Engagement Rate?
Engagement Rate measures the percentage of people who interacted with your ad out of the total number of impressions. It shows how effectively your ad encourages user interaction.
Engagement Rate Formula
Engagement Rate = Total Ad Engagement / Total Impressions
How to Calculate Engagement Rate
To calculate Engagement Rate, divide the total number of ad engagements by the total number of impressions your ad received.
For Example
Game – Wizard Universe
Total Ad Engagements = 2,000
Total Impressions = 50,000
Engagement Rate = 2,000 / 50,000 = 4%
App – Meditation Master
Total Ad Engagements = 1,500
Total Impressions = 40,000
Engagement Rate = 1,500 / 40,000 = 3.75%
How to Improve Engagement Rate
1. Create Attractive Ads
Design ads that grab attention and encourage interaction.
2. Use Clear Call-to-Actions (CTAs)
Tell viewers exactly what you want them to do.
3. Target Relevant Audiences
Show ads to users likely to engage.
4. Test Different Ad Formats
Try videos, images, or interactive ads.
5. Monitor and Optimize
Regularly analyze engagement data to improve ads.
Bounce Rate (Universal Analytics)
What is Bounce Rate?
Bounce Rate represents the percentage of visits where users leave your site after viewing only one page. For Google Ads sessions, it shows how many users did not interact further after clicking your ad.
Bounce Rate Formula
Bounce Rate = (Single Page Visits / Total Visits) × 100
How to Calculate Bounce Rate
To calculate Bounce Rate, divide the number of single-page visits by the total visits from Google Ads sessions, then multiply by 100 to get a percentage.
For Example
Game – Ice Scream
Single Page Visits = 300
Total Visits = 1,000
Bounce Rate = (300 / 1,000) × 100 = 30%
App – Budget Tracker
Single Page Visits = 450
Total Visits = 1,500
Bounce Rate = (450 / 1,500) × 100 = 30%
How to Reduce Bounce Rate
1. Improve Landing Page Relevance
Ensure the page matches user expectations from the ad.
2. Enhance Page Load Speed
Faster pages keep users engaged.
3. Use Clear Navigation
Make it easy for visitors to explore more pages.
4. Provide Quality Content
Offer valuable and engaging information.
5. Optimize for Mobile
Ensure a smooth mobile browsing experience.
Pages Per Session (Google Analytics)
What is Pages Per Session?
Pages Per Session measures the average number of pages a user views during a single session on your website. For Google Ads sessions, it indicates how engaged users are after clicking your ad.
Pages Per Session Formula
Pages Per Session = Total Pages Viewed / Total Sessions
How to Calculate Pages Per Session
To calculate this metric, divide the total number of pages viewed by the total number of sessions from Google Ads.
For Example
Game – Doll Dressup
Total Pages Viewed = 5,000
Total Sessions = 1,000
Pages Per Session = 5,000 / 1,000 = 5
App – Fitness Tracker Pro
Total Pages Viewed = 3,200
Total Sessions = 800
Pages Per Session = 3,200 / 800 = 4
How to Improve Pages Per Session
1. Create Engaging Content
Encourage users to explore more pages.
2. Improve Website Navigation
Make it easy for visitors to find related content.
3. Use Internal Linking
Guide users to other relevant pages.
4. Optimize Page Load Speed
Faster pages encourage more browsing.
5. Target Relevant Audiences
Bring users who are interested in your content.
Average Session Duration (Google Analytics)
What is Average Session Duration?
Average Session Duration measures the average amount of time users spend on your website during a single session. For Google Ads sessions, it shows how long visitors stay on your site after clicking your ad.
Average Session Duration Formula
Avg. Session Duration = Total Duration of All Sessions / Total Sessions
How to Calculate Average Session Duration
To calculate this metric, divide the total time spent by all users during their sessions by the total number of sessions from Google Ads.
For Example
Game – Thief Puzzle
Total Duration = 10,000 minutes
Total Sessions = 2,000
Avg. Session Duration = 10,000 / 2,000 = 5 minutes
App – Language Learner Pro
Total Duration = 6,000 minutes
Total Sessions = 1,200
Avg. Session Duration = 6,000 / 1,200 = 5 minutes
How to Improve Average Session Duration
1. Create Engaging and Relevant Content
Keep visitors interested for longer.
2. Improve Website Usability
Make navigation simple and enjoyable.
3. Use Multimedia Elements
Videos, images, and interactive content increase time spent.
4. Optimize Page Load Speed
Faster sites reduce bounce and encourage longer sessions.
5. Target Relevant Audiences
Attract users genuinely interested in your offerings.
% of New Sessions (Google Analytics)
What is % of New Sessions?
% of New Sessions shows the percentage of users who are visiting your website for the first time during Google Ads sessions. It helps you understand how well your ads attract new visitors.
% of New Sessions Formula
% of New Sessions = First Time Sessions / Total Sessions × 100
How to Calculate % of New Sessions
To calculate this metric, divide the number of first-time sessions by the total number of sessions from Google Ads, then multiply by 100 to get the percentage.
For Example
Game – Car Rush
First Time Sessions = 800
Total Sessions = 2,000
% of New Sessions = (800 / 2,000) × 100 = 40%
App – Meditation Master
First Time Sessions = 600
Total Sessions = 1,500
% of New Sessions = (600 / 1,500) × 100 = 40%
How to Improve % of New Sessions
1. Expand Your Audience Targeting
Reach new users with broader targeting options.
2. Use Attractive Ad Creatives
Create ads that appeal to first-time visitors.
3. Explore New Marketing Channels
Use different platforms to find new audiences.
4. Optimize Keywords
Target keywords likely to attract new users.
5. Analyze Audience Data
Understand who your new users are and tailor your ads.
Click Share
What is Click Share?
Click Share represents the percentage of clicks your ad received out of the total possible clicks available on the Search Network. It helps you understand how well your ads are performing compared to the total opportunity.
Click Share Formula
Click Share = Clicks You Received / Maximum Clicks You Could Have Received × 100
How to Calculate Click Share
To calculate Click Share, divide the number of clicks your ad received by the maximum possible clicks you could have gotten, then multiply by 100 to get the percentage.
For Example
Game – Legend of Fireball
Clicks Received = 60
Click Share = 60%
Estimated Maximum Clicks = 60 / 0.60 = 100 clicks
(Meaning you missed 40 potential clicks)
App – Budget Tracker Pro
Clicks Received = 90
Click Share = 75%
Estimated Maximum Clicks = 90 / 0.75 = 120 clicks
(Meaning you missed 30 potential clicks)
How to Improve Click Share
1. Increase Your Bid
Higher bids can help win more auctions.
2. Improve Ad Quality
Enhance ad relevance and expected click-through rate.
3. Expand Budget
A larger budget allows capturing more clicks.
4. Optimize Keywords
Focus on high-performing and relevant keywords.
5. Monitor Competitors
Adjust strategies based on competitor activity.
Phone Through Rate (PTR)
What is Phone Through Rate?
Phone Through Rate (PTR) measures the percentage of times users clicked to call your business after seeing your phone number in ads. It indicates how effectively your ads encourage direct phone interactions.
Phone Through Rate Formula
PTR = Total Phone Calls Received / Number of Times Phone Number Was Shown × 100
How to Calculate Phone Through Rate
To calculate PTR, divide the total number of phone calls received by the number of times your phone number was displayed, then multiply by 100 to get the percentage.
For Example
Game – Cornhole League
Phone Calls Received = 150
Phone Number Shown = 1,000
PTR = (150 / 1,000) × 100 = 15%
App – Budget Planner Pro
Phone Calls Received = 80
Phone Number Shown = 800
PTR = (80 / 800) × 100 = 10%
How to Improve Phone Through Rate
1. Make Phone Number Prominent
Display the phone number clearly in ads.
2. Use Call Extensions
Add call extensions in your Google Ads.
3. Optimize for Mobile
Ensure clicking the phone number initiates a call easily.
4. Offer Incentives
Encourage users to call with special offers.
5. Monitor and Test
Regularly review performance and test different approaches.
Break Even Return On Ad Spend (Break Even ROAS)
What is Break Even ROAS?
Break Even ROAS is the minimum return on ad spend you need to cover your costs without making a loss. It tells you how much revenue you must earn from your ads to break even.
Break Even ROAS Formula
Break Even ROAS = 1 / Profit Margin
How to Calculate Break Even ROAS
To calculate Break Even ROAS, divide 1 by your profit margin (expressed as a decimal).
For Example
If you make $200 net profit on a $1,000 sale:
Profit Margin (PM) = 200 / 1,000 = 0.20 (20%)
Break Even ROAS = 1 / 0.20 = 5 (or 500%)
This means you need to earn $5 in revenue for every $1 spent on ads to break even.
How to Use Break Even ROAS
1. Set Realistic Ad Spend Goals
Know your minimum ROAS target to avoid losses.
2. Monitor Campaign Performance
Pause or adjust campaigns that do not meet Break Even ROAS.
3. Improve Profit Margins
Lower costs or increase prices to reduce Break Even ROAS.
4. Optimize Ad Targeting
Focus on high-converting audiences to increase ROAS.
5. Test and Refine
Continuously test ads to maximize profitability.
Close Rate
What is Close Rate?
Close Rate measures the percentage of leads or opportunities that result in a successful conversion or sale. It helps evaluate how effective your sales or conversion process is.
Close Rate Formula
Close Rate = (Number of Closes / Number of Conversions) × 100
How to Calculate Close Rate
To calculate Close Rate, divide the number of successful closes by the total number of conversions, then multiply by 100 to get the percentage.
For Example
Game – Ice Scream
Closes = 120
Conversions = 150
Close Rate = (120 / 150) × 100 = 80%
App – Budget Tracker Pro
Closes = 75
Conversions = 100
Close Rate = (75 / 100) × 100 = 75%
How to Improve Close Rate
1. Improve Lead Qualification
Focus on high-quality leads likely to convert.
2. Enhance Sales Process
Streamline and optimize steps to close deals faster.
3. Provide Clear Value
Communicate benefits effectively to prospects.
4. Follow Up Promptly
Engage with leads quickly and consistently.
5. Use Data to Refine Strategy
Analyze what works and adjust accordingly.
True Cost Per Conversion (True CPA)
What is True Cost Per Conversion?
True Cost Per Conversion (True CPA) calculates the actual cost to acquire a final customer by adjusting the Google Ads CPA with your Close Rate. It provides a clearer view of your real advertising cost per successful conversion.
True CPA Formula
True CPA = Google Ads CPA / Close Rate
How to Calculate True CPA
To calculate True CPA, divide your Google Ads Cost Per Acquisition (CPA) by your Close Rate (expressed as a decimal).
For Example
If your Google Ads CPA is $20 and Close Rate is 30%:
True CPA = 20 / 0.30 = $66.67
This means it actually costs $66.67 in ads to get one final customer after accounting for the close rate.
How to Use True CPA
1. Evaluate Advertising Efficiency
Understand the real cost of acquiring paying customers.
2. Adjust Budgets
Allocate budget based on true customer acquisition costs.
3. Improve Close Rate
Increasing your close rate lowers True CPA.
4. Optimize Ad Campaigns
Focus on campaigns with better True CPA values.
5. Align Sales and Marketing
Ensure close rate data is accurately shared with marketing teams.
Invalid Click Rate (ICR)
What is Invalid Click Rate?
Invalid Click Rate (ICR) measures the percentage of clicks on your ads that Google identifies as invalid. These could be accidental clicks, fraudulent clicks, or any clicks that do not represent genuine user interest.
Invalid Click Rate Formula
ICR = (Number of Invalid Clicks / Total Clicks Received) × 100
How to Calculate Invalid Click Rate
To calculate ICR, divide the number of invalid clicks by the total clicks your ads received, then multiply by 100 to get the percentage.
For Example
Game – Doll Dressup
Invalid Clicks = 20
Total Clicks = 1,000
ICR = (20 / 1,000) × 100 = 2%
App – Meditation Master
Invalid Clicks = 15
Total Clicks = 750
ICR = (15 / 750) × 100 = 2%
How to Reduce Invalid Click Rate
1. Use Click Fraud Protection Tools
Implement software to detect and block invalid clicks.
2. Exclude Suspicious IP Addresses
Block IPs generating repeated invalid clicks.
3. Monitor Campaign Performance
Regularly review metrics to spot unusual activity.
4. Adjust Targeting
Avoid high-risk placements and suspicious sources.
5. Report Invalid Clicks to Google
Request credits for invalid clicks through Google Ads support.
Invalid Interaction Rate (IIR)
What is Invalid Interaction Rate?
Invalid Interaction Rate (IIR) measures the percentage of interactions with your ads that are deemed invalid by Google. These interactions do not reflect genuine user engagement and may include accidental or fraudulent actions.
Invalid Interaction Rate Formula
IIR = (Number of Invalid Interactions / Total Interactions Received) × 100
How to Calculate Invalid Interaction Rate
To calculate IIR, divide the number of invalid interactions by the total interactions your ads received, then multiply by 100 to get the percentage.
For Example
Game – Wizard Universe
Invalid Interactions = 10
Total Interactions = 500
IIR = (10 / 500) × 100 = 2%
App – Fitness Tracker Pro
Invalid Interactions = 8
Total Interactions = 400
IIR = (8 / 400) × 100 = 2%
How to Reduce Invalid Interaction Rate
1. Use Fraud Detection Tools
Implement tools to identify and block invalid interactions.
2. Monitor Campaigns Closely
Watch for unusual spikes in interactions.
3. Exclude Low-Quality Traffic Sources
Avoid sources with high invalid interaction rates.
4. Optimize Targeting Settings
Refine audience targeting to reduce invalid activity.
5. Report to Google Ads Support
Request investigation and credit for invalid interactions.
Average Cost
What is Average Cost?
Average Cost represents the mean amount you spend per interaction with your ad. It helps you understand how much, on average, each user interaction costs.
Average Cost Formula
Average Cost = Total Cost / Total Interactions
How to Calculate Average Cost
To calculate Average Cost, divide the total cost spent on ads by the total number of interactions received.
For Example
If there are two interactions with your ad:
- One costs $0.30
- Another costs $0.40
Average Cost = (0.30 + 0.40) / 2 = $0.35
How to Optimize Average Cost
1. Improve Ad Targeting
Focus on audiences more likely to engage.
2. Increase Ad Quality
Better ads often cost less per interaction.
3. Adjust Bids
Manage bids to balance cost and performance.
4. Monitor Performance
Track cost trends and optimize campaigns accordingly.
5. Test Ad Variations
Experiment to find cost-efficient creatives.
Optimization Score
What is Optimization Score?
Optimization Score is an estimate of how well your Google Ads account is set up to perform. It reflects how effectively your campaigns are optimized to achieve the best results.
Optimization Score Details
The score is rated on a scale from 1 to 100, where 100 means your account is fully optimized.
How to Use Optimization Score
- Regularly check your Optimization Score in Google Ads.
- Follow Google’s recommendations to improve the score.
- Prioritize changes that can have the biggest impact on performance.
- Use the score as a guide to identify areas for campaign improvement.
For Example
If your Optimization Score is 85, it means your account is performing well but still has room for improvement.
How to Improve Your Optimization Score
1. Implement Recommended Changes
Apply suggestions provided by Google Ads.
2. Optimize Keywords and Bids
Use smart bidding and refine keywords.
3. Improve Ad Quality
Create relevant, engaging ads.
4. Utilize Ad Extensions
Add sitelinks, callouts, and other extensions.
5. Review and Adjust Targeting
Ensure your audience targeting is accurate.
Custom Column
What is a Custom Column?
A Custom Column allows you to create your own metrics in Google Ads by combining existing data points. This helps you analyze specific aspects of your campaigns tailored to your needs.
How to Use Custom Columns
You can build formulas using available metrics. For example, to measure the share of clicks coming from mobile phones, you could create a formula like:
Clicks: Mobile Phones / Clicks
How to Create Custom Columns
- Go to your Google Ads dashboard.
- Select the option to create a Custom Column.
- Define your formula using existing metrics.
- Name your custom metric for easy reference.
- Use it to track campaign performance in a more customized way.
For Example
If you want to see what percentage of your clicks come from mobile devices, use:
Mobile Clicks / Total Clicks
Benefits of Custom Columns
- Tailor reporting to your specific goals.
- Combine multiple metrics into one easy-to-understand value.
- Gain deeper insights into campaign performance.
Thank You!
Words will never be enough to express my gratitude, but from the bottom of my heart, thank you for taking the time to read this book. Your support truly means a lot to me.
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