The 5 Paid Search Metrics That Actually Matter
5 Metrics That Matter Most in Paid Search (and 3 You Should Ignore)
One of the biggest mistakes we see in paid search advertising? Focusing on the wrong metrics.
It's easy to get caught up in numbers like impressions or CTR, but those don’t always tell the real story about whether your ads are driving actual growth.
In this post, we’ll break down the 5 KPIs that actually move the needle in paid search, and highlight 3 vanity metrics you can stop obsessing over.
✅ The 5 Paid Search Metrics That Actually Matter
1. Cost Per Qualified Lead (CPQL)
Not all leads are created equal. CPQL measures how much you’re paying not just for any lead, but for a sales-ready lead.
It helps you understand if your campaigns are attracting the right audience — not just filling the funnel.
Pro Tip: Make sure your conversion tracking filters out low-intent form fills or unqualified leads.
2. Return on Ad Spend (ROAS)
ROAS = Revenue ÷ Ad Spend. This is your profitability snapshot and a must-track for ecommerce and lead gen campaigns with LTV tracking.
A high ROAS? Your ads are generating efficient revenue.
A low ROAS? Either your costs are too high, or your site/offer isn’t converting.
Pro Tip: For subscription or B2B businesses, look at ROAS over LTV — not just initial purchases.
3. Conversion Rate (CVR)
CVR shows the percentage of clicks that turn into leads or sales.
A strong CVR means your landing page, offer, and targeting are aligned. A weak one signals friction or mismatch.
Benchmark: 3–6% is solid for most search campaigns — but high-intent offers can push higher.
4. Quality Score (QS)
Google’s internal rating of your keyword relevance, ad copy, and landing page experience.
Higher QS = Lower CPC = Better ROI.
Why it matters: Improving QS can reduce your cost per click by 20–40% without changing your bid.
5. Impression Share (Lost Due to Budget or Rank)
This metric shows how much visibility you’re missing out on due to low budget or poor ad rank.
Lost to Budget → You’re missing out on volume. Consider scaling.
Lost to Rank → Your ads aren’t competitive enough. Check your bids, QS, or ad relevance.
❌ 3 Vanity Metrics You Can Ignore (Most of the Time)
1. Click-Through Rate (CTR)
Sure, it’s a sign of ad engagement — but a high CTR doesn’t mean sales.
You could be getting tons of clicks from the wrong audience. Always balance CTR with conversion quality.
2. Impression Volume
More impressions ≠ more revenue. In fact, high impression volume with low engagement may mean your targeting is too broad or irrelevant.
3. Average Position (now largely deprecated)
Even before Google sunsetted this metric, it was misleading. Being #1 isn’t always the goal — sometimes positions 2–3 convert better and cost less.
The Bottom Line: Track What Drives Revenue
Paid search success isn’t about pretty dashboards — it’s about performance that scales profitably.
If your reporting isn’t helping you:
Reduce cost per qualified lead,
Improve ROAS,
Optimize conversion pathways…
…it’s time to shift your focus.
Need help auditing your current PPC performance?
👉 Let’s talk about how we can help you cut wasted spend and scale what works.