Getting your media budgets approved is the easy part, but knowing where you’re spending it is where things get interesting. With PPC, you’re literally paying for every click, so every keyword, every ad, and every landing page matters. Unlike broader awareness tactics like programmatic display or CTV, PPC is all about high-intent. People actively search for something you offer. That’s what makes performance tracking so critical. Without it, you’re not optimizing, it’s just guesswork with a price tag.

Your first indication that your ad is effective is the click-through rate (CTR). It tells you when people saw your ad, they cared enough to click on it. But clicks alone won’t pay the bills, which brings us to conversion rate (CVR), that’s where you find out if those curious visitors did something useful, like buying or signing up. Next is cost per click (CPC). This tells you how much you’re paying just to get someone in the door. Sure, lower is usually better, but cheap traffic that doesn’t convert? Not exactly a win.

Then there’s the cost per conversion (CPA or CPL): this one is about efficiency. It shows how much it costs you to get a lead or a sale, and if that number’s creeping up, it’s time to investigate. Finally, the big one: return on ad spend (ROAS). That’s your bottom line. For every dollar you spend, how many are you getting back? If this number isn’t making you smile, or at least break even, something needs fixing. These five are the ones to watch. Get them right, and your campaigns will stop draining your budget and start delivering real results.

1. How do you know how many people clicked on your ad?

It’s one thing for people to see your ad but did they care enough to click? That’s where click-through rate (CTR) comes in. It tells you how many users made it past the scroll and decided,

“Yeah, this looks interesting.”

A higher CTR usually means your ad is doing its job, that is grabbing attention, sparking curiosity, and pulling people in. Plus, better CTR often leads to better placements and lower costs.

It’s like getting a pat on the back from the algorithm.

Quick tip for better CTR: Don’t just launch and leave. Test different headlines, ad copy and CTAs. Even tiny tweaks can lift your CTR in a big way, especially with formats like programmatic video advertising where ad creatives play a crucial role. And if you’re running high-intent PPC, making sure the message and landing page aligns with what people are actively searching for is key to driving that first click. Your ad’s quality score matters.

2. How many of those clicks actually did something?

Remember that clicks are just the start. What really counts is what people do after they land on your site. That’s your cue to check the conversion rate (CVR). It shows you how many of those curious clickers went on to take action, be it buying something, signing up, booking a call, or filling out a form.

Now, if your CVR is low, it usually means there’s friction somewhere. Maybe the landing page doesn’t deliver on what the ad promised. Maybe it’s really slow Or maybe the flow is just confusing. Either way, people are bouncing, and your budget’s bleeding.

Quick tip for better CVR: Make sure the ad and landing page feel like a seamless experience. The message should connect all the way through because that consistency builds trust, and trust converts. This is especially important in PPC, where users typically have a clear goal in mind. So, if your landing page veers off course, you risk losing them fast.

3. What are you paying each time someone clicks on your ad?

This is where cost per click (CPC) comes in. It’s the average amount you’re shelling out every time someone taps on your ad. Lower CPC? Great, that means you’re getting more traffic for less.

But don’t fall into the trap of chasing low cost clicks just to see the numbers move. Because let’s be honest, a thousand bargain-bin clicks that don’t convert aren’t worth nearly as much as ten high-intent ones that do.

Your CPC can fluctuate based on things like your creative, audience targeting, and ad placement. For example, a campaign running on video or display may perform very differently than one delivered through audio or CTV channels.

Quick tip for better CPC: Keep an eye on how your creatives, audiences, and platforms affect cost. Small tweaks can shift your CPC without you even noticing—until the budget’s half gone and your results aren’t half as good. And in PPC, keywords with stronger intent often cost more, but they’re also more likely to convert, making them worth the premium.

4. How much is it really costing you to get a lead or sale?

This is the stat that makes CFOs smile or sweat. Cost per conversion or cost per lead (CPA or CPL) tells you how much each actual result is costing you, not just the click. If your CPA is sky-high, it’s a red flag. You might be overspending to chase conversions that aren’t sticking, or worse, spending on ads that bring in the wrong crowd entirely.

Quick tip for better CPA: Break it down. Look at which campaigns, audiences, or ad types are pulling their weight, and which are just showing up for the free snacks. In PPC, consider reviewing keyword match types and search queries. Sometimes a few irrelevant terms can quietly bloat your CPA.

5. How do you know if your ads are actually making money for your business?

Return on ad spend (ROAS) is the clearest sign of whether your campaign is paying off. For every dollar you spend, how much are you getting back? High ROAS? You’re in the sweet spot. Low ROAS?

Time to dig deeper and figure out what’s draining your dollars.

Quick tip for better ROAS: Don’t just look at the big, shiny total. Break ROAS down by channel, campaign, or ad group . For PPC specifically, map ROAS back to keyword intent, because fewer, more focused campaigns often outperform broader ones by a mile.

Why KPIs Matter More Than Ever

Tracking PPC KPIs isn’t just about crunching numbers, it’s how you spot trends, avoid waste, and scale what’s working. Whether you’re running display, video, or audio campaigns, knowing which metrics to watch means you know how to turn clicks into conversions, and ads into assets.