Updated: Oct 17
To understand clicks, it's first important to understand impressions. This is where everything starts when you are running a Google ad. An impression is when the ad is shown to someone. Now, it's important to note that an impression does not mean that person noticed your ad or gave it the time of day. It simply means that the ad appeared on their screen. Your impressions will not measure whether or not that person clicked on your ad or remembered that it even popped up. Your goal is to turn those impressions into clicks, which is when someone clicks on your ad.
If you're running a search campaign, the click metric is a crucial interaction to keep tabs on. The rate at which people are clicking or interacting with your ad is the click-through rate (CTR). Essentially, CTR is the percentage of impressions that clicked compared to the total number of impressions your ad received. So, if your ad had 100 impressions and 10 people clicked, you would have a 10% CTR.
Lastly, you have conversions. When a click converts into action, this is a conversion. When setting up a Google Ads campaign, you set up what is called Conversion Tracking. You can set the definition of a conversion to mean several different things, which depend on what you're looking to track. Let's check out some examples of what you might want conversions to be:
Contact - A person calling or emailing your company for information.
Form Submission - A person opting into contact with a form. This can be a form of email collection or lead generation.
A person purchases a product or service through your website. You might also consider defining conversion as someone who visited your website multiple times or if someone visited your website once and stayed on the page for a certain amount of time. You will also look at your conversion rate, which is the percentage of clicks that turned into conversions. Like before, if you had 100 clicks and 10 of those turned into conversions, you'd have a 10% conversion rate. However, the one metric we highly recommend you pay attention to is the conversion value. You can set up different values for different conversions. For example, you might value a submission form higher than a phone call, setting up dollar amounts of value for each. A submission form might be valued at $50, while a phone call might be valued at $30. Having these values will make it much easier to determine your Return On Ad Spend (ROAS).
As a marketing professional or business owner, it's up to you to consider these different terms when building your marketing strategies. If you need help setting up your next big marketing campaign, make sure to get in touch with us here at Gold Level Marketing!