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← Basic training · Module 1 — How advertising on Google works

The 10 metrics you have to master before spending a single euro

⏱️ 11 min read · 📐 Measurement 🔎 Search · updated on 2026-08-22

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Google Ads has hundreds of columns. The ones you genuinely need in order to understand an account fit on one and a half hands. This lesson explains them as a chain — because that is what they are: a chain, where each metric is the result of the previous one, from your ad appearing to somebody buying.

The chain: from impression to sale

Impressions → Clicks → Conversions → Value
      ↓          ↓           ↓
     CTR        CPC      CPA / ROAS

Every arrow in the chain has one metric that measures "how many get through" and another that measures "how much it costs".

1. Impressions

How many times your ad has been shown. An impression does not mean anybody looked at it: only that it appeared on the page. It is raw volume.

2. Clicks

How many times somebody clicked the ad (on the headline, the phone number, a sitelink...). It is traffic to your website.

3. CTR — click-through rate

clicks ÷ impressions. If out of 100 times you appear you get 5 clicks, your CTR is 5%. It measures how appealing the ad is for that search: the first symptom of whether your message connects. A low CTR in Search usually means an ad that is not relevant enough, a low position or keywords that are too broad.

4. Cost

What you have paid over the period. The only metric that needs no explanation... and the one everybody looks at first, when it should be looked at last.

5. Average CPC — cost per click

cost ÷ clicks. How much, on average, each visit costs you. Remember the auction lesson: average CPC is the average of thousands of different auctions; it goes up with competition and down with quality.

6. Conversions

How many times somebody, after the click, did the action you defined: purchase, form, call, sign-up... Google does not know what a conversion means to you until you tell it (the Measurement module shows you how). Without properly measured conversions, everything else is decoration.

7. Conversion rate

conversions ÷ clicks. Out of every 100 visits, how many convert. It measures the quality of the traffic and of your website at the same time: whether the ad brings the right people and whether the page does its job.

8. CPA — cost per conversion

cost ÷ conversions. How much it costs you to get each lead or each sale. It is the headline metric for lead generation businesses (forms, calls, quotes): compared with what a customer is worth, it tells you whether the campaign is profitable.

9. Conversion value and ROAS

The value is the money the conversions generated (the amount of each sale, if you measure it). ROAS (return on ad spend) is value ÷ cost: for every euro invested, how much you take in. A ROAS of 4 means €4 of sales for every euro of advertising. It is the headline metric for ecommerce — and it has a catch: ROAS is not profit, because it does not deduct the cost of the product. Later on we will look at POAS (return on profit).

10. Impression share (IS)

Out of all the times you could have appeared, how many you actually did. An IS of 40% means you are missing 60% of the searches. Google also tells you why you are missing them: budget (the day's money ran out) or rank (you did not clear the threshold). It is the metric that answers "can I grow?".

Which metric to look at, depending on the question

Question Metric
Am I being seen? Impressions, impression share
Does my ad connect? CTR
Am I paying a sensible price per visit? Average CPC
Does my site convert the traffic it gets? Conversion rate
Is acquiring customers this way profitable? CPA (lead gen) · ROAS (ecommerce)
Can I grow, and what is holding me back? Lost IS (budget) vs lost IS (rank)

The most common misreadings

💡 Ninja trick: the metrics in the interface tell you what has happened, but not where to look. That is precisely the job of the Suite's scripts: they cross-check these ten figures every night, campaign by campaign, and only alert you when something falls outside the normal range — CPA through the roof, IS lost to budget, CTR collapsing in a campaign that used to work. You read the alert, not the tables.

What you should remember

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📎 Sources and further reading

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