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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 2026-09-02

🎧 Listen to the lesson · ≈ 5 min🔒 Subscribers only

In short: Google Ads metrics are a chain, not a list: impression → click → visit → conversion → sale. Each one is the result of the previous one, and each link has its ratio (CTR, CPC, CPA, ROAS). Looking at a single metric on its own leads to false conclusions; what diagnoses a problem is seeing which link the chain breaks at.

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.

How do Google Ads metrics chain together?

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 should I look at in each case?

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)

What are the most common mistakes when reading metrics?

💡 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

📎 Sources and further reading

⚠️ Free training with no support. Ninja Scripts support channels (email and Telegram) are only for the use of the scripts, not for Google Ads questions or questions about this training.

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← BeforeAd Rank and Quality Score: what the «quality» Google rewards is made ofHow advertising on Google worksAfter →What you control and what the algorithm decides: the advertiser's leversHow advertising on Google worksRelacionadaAI Max Analyzer in practice: install it, read the verdict and actAI Max — the black box of automatic Search expansionRelacionadaHow to measure what you can't see: split by source, before/after with a control, and reconcileAI Max — the black box of automatic Search expansionRelacionadaCase: long-cycle B2B lead generation — few leads, high value and a funnel that lasts monthsAccount architectures for scale — real casesRelacionadaCase: the small service business that goes from €1,500 to €8,000 a month without rebuilding the accountAccount architectures for scale — real cases

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