{"id":26663,"date":"2025-09-25T00:18:07","date_gmt":"2025-09-24T18:48:07","guid":{"rendered":"https:\/\/www.karooya.com\/blog\/?p=26663"},"modified":"2025-09-25T00:18:09","modified_gmt":"2025-09-24T18:48:09","slug":"ppcchat-which-metrics-really-matter-in-ppc-in-2025","status":"publish","type":"post","link":"https:\/\/www.karooya.com\/blog\/ppcchat-which-metrics-really-matter-in-ppc-in-2025\/","title":{"rendered":"PPCChat | Which Metrics Really Matter in PPC in 2025? | 23rd September 2025"},"content":{"rendered":"\n

Hello readers! Here\u2019s a recap of this week\u2019s PPCChat session, hosted by Julie F. Bacchini, where the discussion centered on the key metrics PPC professionals prioritize, the most underrated and misunderstood metrics, and much more.<\/p>\n\n\n\n\n\n\n\n

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Q1: Which performance metrics do you think are the most important to focus on in your PPC efforts? Why do you think those metrics are most important?<\/strong><\/h4>\n\n\n\n
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I can\u2019t wait to hear what everyone says here! @NeptuneMoon<\/a><\/p>\n\n\n\n

Anything conversion related is usually P1 across all my clients. CPA\/CvR are my typical go-tos. @AnthonyMcDaniel<\/a><\/p>\n\n\n\n

For me, it comes down to profitability and that is so often not the focus. So cost per acquisition (CPA) is an important one in my book. @NeptuneMoon<\/a><\/p>\n\n\n\n

If revenue data is available, that obviously becomes the priority with ROAS and conversion value. @AnthonyMcDaniel<\/a><\/p>\n\n\n\n

It blows my mind that clients often have no idea what a reasonable amount is to pay for a lead. @NeptuneMoon<\/a><\/p>\n\n\n\n

Total conversions, CPL, and IS is important to a lot of my clients. they look at reach, so shares make a lot of meaning for them. @JuliaVyse<\/a><\/p>\n\n\n\n

I focus on profitability metrics: CAC and ROAS. If cost is too high, ROAS falls. High CTR with low CVR negatively impacts CAC and ROAS. @JeffreyHain<\/a><\/p>\n\n\n\n

Once I get a handle the market reach and the traffic I look at conversion performance. The volume helps sort the impact, and the rate metrics are how I qualify the performance. @Chriskostecki<\/a><\/p>\n\n\n\n

@NeptuneMoon<\/a>  and so many clients have no idea how to even figure out what a reasonable CPA would be for them! @AnthonyMcDaniel<\/a><\/p>\n\n\n\n

@NeptuneMoon<\/a> and how that cost shifts over time. @Chriskostecki<\/a><\/p>\n\n\n\n

@AnthonyMcDaniel<\/a> Yes! And then they are like \u201cwell, I guess $100?\u201d. It is interesting to me too that the concept of lifetime value is kinda ignored by lead gen advertisers. @NeptuneMoon<\/a><\/p>\n\n\n\n

@NeptuneMoon<\/a> the good ones factor in downstream performance. @Chriskostecki<\/a><\/p>\n\n\n\n

I’m actually in a process to help a client establish an LTV. So often our partnership is more about consulting than pushing buttons in the platform! @JuliaVyse<\/a><\/p>\n\n\n\n

About a year ago, we built a conversion value calculator (I think Google has one, but theirs was not publicly available for a couple months, so we built our own and even walking clients through that can feel like pulling teeth. @AnthonyMcDaniel<\/a><\/p>\n\n\n\n

My order of operations: Is the budget sufficient for the demand? Is the traffic qualified, is message resonating? Are we converting? Are they qualified? Can we get more, and sometimes can we get them more efficiently? @Chriskostecki<\/a><\/p>\n\n\n\n

It’s surprising (but not really) how many business owners don’t know even ballpark estimates of their sales funnel, AoV, LTV or customer repeat rate, etc. @AnthonyMcDaniel<\/a><\/p>\n\n\n\n

CAC & it\u2019s variants CPL\/CPA\/CPT\/CPS. LTV\/CAC. ROI\/Profit (Gross\/Net), ROAS, Conversion Rate. @alimehdimukadam<\/a><\/p>\n\n\n\n

@AnthonyMcDaniel<\/a> Truly shocking. Also, here is a page of PPC acronyms if you\u2019re not sure what some are that people are sharing: https:\/\/officialppcchat.com\/ppc-acronyms\/<\/a> @NeptuneMoon<\/a><\/p>\n\n\n\n

And MER if multi-channel. @alimehdimukadam<\/a><\/p>\n\n\n\n

I was hoping TOFU was a joke, I always refer to it as ToF. @Chriskostecki<\/a><\/p>\n\n\n\n

Depending on the client depends on what the focus is, but I wouldn’t blanket all my clients under one KPI… it really depends on what we’re trying to achieve! This also may change throughout the year due seasons… e.g. Q4. @Meriem<\/a><\/p>\n\n\n\n

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Q2: Which performance metrics do clients and stakeholders think are most important?<\/strong><\/h4>\n\n\n\n
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Some get fixated on one to the exclusion of all the others\u2026 what I most commonly see is ROAS or Conversion Rate or Cost Per Click. Less often CPA. @NeptuneMoon<\/a><\/p>\n\n\n\n

Conversion volume\/quality. @Chriskostecki<\/a><\/p>\n\n\n\n

And do not get met started on Ad Strength or Optimization score. Generally though lead gen clients want quality leads at a reasonable cost (reasonable to them, not necessarily what the auction sees as reasonable) @NeptuneMoon<\/a><\/p>\n\n\n\n

Auctions (why is my ad not on top or can\u2019t see, etc). Lead Quality, Total Cost, CPA\/CAC. @alimehdimukadam<\/a><\/p>\n\n\n\n

I’ve had clients hound me about rising CPC, completely ignoring the fact that leads were up, CPA was down, and our engagement rate was up. @AnthonyMcDaniel<\/a><\/p>\n\n\n\n

Total Conversions, CPL. Total reach and impression share for some. @JuliaVyse<\/a><\/p>\n\n\n\n

@AnthonyMcDaniel<\/a> So frustrating. @NeptuneMoon<\/a><\/p>\n\n\n\n

@AnthonyMcDaniel<\/a>  I feel your pain. Conversions went way up in our pmax campaigns, and they want to know why video views are down. Sir, it’s because it’s optimizing! Can I interest you in a demand gen? @JuliaVyse<\/a><\/p>\n\n\n\n

IDK, I see costs and budget stewardship separate than performance – sure they meet at some point, but they are usually two different conversations, “here is our budget” vs. “what are getting from it, what do you see” @Chriskostecki<\/a><\/p>\n\n\n\n

Everyone\u2019s costs have been going up to just maintain their position and that can be hard for businesses to understand. @NeptuneMoon<\/a><\/p>\n\n\n\n

The PMAX inventory takeover a few years ago took care of that shock for a lot of my clients. @Chriskostecki<\/a><\/p>\n\n\n\n

PMax definitely requires some recalibrating. @NeptuneMoon<\/a><\/p>\n\n\n\n

It depends on the client, some are very focused on clicks… others are sales and others are revenue… It’s like if you give them options in a dashboard they will always focus on a random ones each time…@Meriem<\/a><\/p>\n\n\n\n

Responses I’m reading seem to indicate some client education and expectation setting are needed when starting an engagement. @JeffreyHain<\/a><\/p>\n\n\n\n

^ and throughout. @Chriskostecki<\/a><\/p>\n\n\n\n

100% you can always educate a client… I even have an intro slide to answer data I provide, reminding them of the key things and what they mean, but unfortunately, with stakeholders, it’s not that simple!  @Meriem<\/a><\/p>\n\n\n\n

@Meriem<\/a>  I like to bold H1 the main KPI, and everything else is a ‘health metric’ showing how the program is doing. @JuliaVyse<\/a><\/p>\n\n\n\n

I DO THAT!!! @Meriem<\/a><\/p>\n\n\n\n

Unfortunately, with a large client of mine, impression share stats hold a substantial stranglehold on conversations every other month or so @Ryansappington<\/a><\/p>\n\n\n\n

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Q3: Which performance metric do you think is the most underrated in PPC?<\/strong><\/h4>\n\n\n\n
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Impression share. @Chriskostecki<\/a><\/p>\n\n\n\n

@Chriskostecki<\/a> I agree on impression share! Like if you are in the >10% bracket, whatever you do doesn\u2019t move the needle all that much. You\u2019re only in roughly 1 out of 10 auctions\u2026@NeptuneMoon<\/a><\/p>\n\n\n\n

Optimization Score. @alimehdimukadam<\/a><\/p>\n\n\n\n

To me it defines the opportunity, and all else follows. @Chriskostecki<\/a><\/p>\n\n\n\n

Wow, I was going to say Impression Share too! LIke @Chriskostecki<\/a> it can give me a good idea on what opportunities are available, especially when taken in combination with lost IS (rank\/budget). @AnthonyMcDaniel<\/a><\/p>\n\n\n\n

Totally agree on impression share also showing you how close to the ceiling you are for search advertising @NeptuneMoon<\/a><\/p>\n\n\n\n

IS for sure. I was out in the wildnerness by myself looking at it, and now all my clients care. @JuliaVyse<\/a><\/p>\n\n\n\n

Apart from IS, In my opinion, the most underrated metric would be getting the final CAC\/LTV and ROI if possible or cost per new customer acquisition in some cases. I see Marketing Efficiency Ratio be used by Ecom a lot, and I use it too. haven\u2019t thought about what the equivalent of that would be for lead gen, cost per qualified lead? @alimehdimukadam<\/a><\/p>\n\n\n\n

Cost per New AC is very interesting to me, but pretty hard to nail down. For one thing: define “new” (yes, that is a real thing for my clients) @JuliaVyse<\/a><\/p>\n\n\n\n

Second answer: Time. @Chriskostecki<\/a><\/p>\n\n\n\n

@Chriskostecki<\/a> Patience too? @NeptuneMoon<\/a><\/p>\n\n\n\n

I Third\/fourth? impression share!! BUT I find a lot of agencies I have supported over the years DO NOT really understand it or what it means which is such a shame! @Meriem<\/a><\/p>\n\n\n\n

Yes, it is often setting a course and tracking towards a future KPI that is successful, as opposed to the ole seat of the pants. @Chriskostecki<\/a><\/p>\n\n\n\n

We are still very much in a re-education era for advertisers who have been advertising for a long time and\/or new advertisers who believe digital advertising is still in its 2000 era. Things simply do not work the way the used to. @NeptuneMoon<\/a><\/p>\n\n\n\n

I talk about the 4S strategy at least 1 a week. @Chriskostecki<\/a><\/p>\n\n\n\n

ugh, the re-education about match types is so draining and painful. Back in the old days kids, exact meant exact…@JuliaVyse<\/a><\/p>\n\n\n\n

And you actually decided if you wanted to show on competitor terms (without having to try to negative them all out) @NeptuneMoon<\/a><\/p>\n\n\n\n

@Chriskostecki<\/a> What\u2019s the 4S Strategy? @alimehdimukadam<\/a><\/p>\n\n\n\n

Consumer journeys have changed. Find out how the 4S behaviors can redefine your marketing https:\/\/business.google.com\/us\/think\/consumer-insights\/new-consumer-decision-making-process<\/a> @Chriskostecki<\/a><\/p>\n\n\n\n

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Q4: Which performance metric do you think is the most misunderstood in PPC?<\/strong><\/h4>\n\n\n\n
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Separating brand vs. non brand – with PMax it is blended unless you separate it. So you are not getting true numbers. And Google reps really discourage you from pulling brand out\u2026 @NeptuneMoon<\/a><\/p>\n\n\n\n

Oh god, all of them!!! But maybe clicks vs engagement. A click is one thing, a gmail open, a video play, a click to open a map are all different. @JuliaVyse<\/a><\/p>\n\n\n\n

All the different Meta clicks not being traffic. CPM @Chriskostecki<\/a><\/p>\n\n\n\n

Conversion value too. It is not that easy to just import sales info back into Google. For a lot of reasons, but the reality is many brands just can\u2019t really do this. So if they want \u201cvalues\u201d included they have to make them up and assign to conversion actions. @NeptuneMoon<\/a><\/p>\n\n\n\n

@NeptuneMoon<\/a> do not assign values to customer lists unless everything is finely tuned! those values can get wild. @Chriskostecki<\/a><\/p>\n\n\n\n

Can we also talk about the craptacular demographic data we get in ad accounts too?????@NeptuneMoon<\/a><\/p>\n\n\n\n

let’s talk about it!!! HHI top 50%, but also 70% of the traffic is unknown. uuuugh @JuliaVyse<\/a><\/p>\n\n\n\n

But sure, tell me again how your AI knows who these people truly are when you can\u2019t show me more than 50% demographic data on people who clicked on my ads\u2026.@NeptuneMoon<\/a><\/p>\n\n\n\n

ROAS. It’s not ROI. And if you’re running in multiple channels with multiple partners, the platform reported ROAS is going to be misleadingly high. An MTA partner can help provide context as to which channels are performing and how many ‘touches’ it takes to get a conversion. @JeffreyHain<\/a><\/p>\n\n\n\n

@NeptuneMoon<\/a>  you mean the great “unknown”s @Chriskostecki<\/a><\/p>\n\n\n\n

@Chriskostecki<\/a> Yes! See also – upload your customer lists for better targeting and such. Oh, shoot, we can only match 10% of that list you sent over\u2026@NeptuneMoon<\/a><\/p>\n\n\n\n

That TV buy was profoundly expensive, but it lifted so much search volume that it looks like your search only ROAS is through the roof. look at the whole picture. @JuliaVyse<\/a><\/p>\n\n\n\n

@JeffreyHain<\/a> Attribution overall is a huge opaque box for many organizations. @Chriskostecki<\/a><\/p>\n\n\n\n

My vote goes to \u2018other search terms\u2019. I paid for it. I want to know what is it\u2026.@alimehdimukadam<\/a><\/p>\n\n\n\n

Clicks..@timmhalloran<\/a><\/p>\n\n\n\n

The fact that CvR in Google Ads doesn’t calculate conversions\/clicks, but conversions\/interactions. I often forget, and then wonder why CvR can be so low in accounts with any video\/dgen campaigns.  @AnthonyMcDaniel<\/a><\/p>\n\n\n\n

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Q5: Which performance metric do you wish would go away forever and never be spoken of again?<\/strong><\/h4>\n\n\n\n
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Kill the optiscore, please. and ad strength. And I’m not thrilled about quality score either. @JuliaVyse<\/a><\/p>\n\n\n\n

The fact that display expansion impacts the recommendation scores is borderline criminal imo. @Chriskostecki<\/a><\/p>\n\n\n\n

@Chriskostecki<\/a> and @JuliaVyse<\/a> I have to agree on both of your answers. @NeptuneMoon<\/a><\/p>\n\n\n\n

It is especially bad when said ad or campaign is performing well but is scored poorly. @NeptuneMoon<\/a><\/p>\n\n\n\n

I don’t mind understanding how the platform interprets what I am doing, I don’t like how they measure optimizations that I had dismissed separately than what is accepted. @Chriskostecki<\/a><\/p>\n\n\n\n

heeeey! I’m one of those services being sold to whoever will pay my agency. you’re not wrong. @JuliaVyse<\/a><\/p>\n\n\n\n

It is all part of Google\u2019s dark patterns though. They word so many things that are in their interest, and not necessarily the advertiser\u2019s interest, as critical or if you don\u2019t do it this way your performance will probably suck, etc. Do bullshit budget recommendations count here? Because I\u2019d like to hurl those into the sun too. @NeptuneMoon<\/a><\/p>\n\n\n\n

And that is where we bring our value, if our clients were left to the platforms alone, they would either get eaten alive or at the very least not see the same level of efficiency for their business. @Chriskostecki<\/a><\/p>\n\n\n\n

@Chriskostecki<\/a> My actual headline at work: I talk to Google so you don’t have to. @JuliaVyse<\/a><\/p>\n\n\n\n

Are the little AI \u201chere is what is happening and a possible reason why\u201d dialogue boxes ruining anyone else\u2019s days on the regular? @NeptuneMoon<\/a><\/p>\n\n\n\n

if they can understand the clients will put as much as they can into advertising, especially if it works, and google, with search is a favorite, just stop asking for more. @Chriskostecki<\/a><\/p>\n\n\n\n

Defaulting to a 7 day window is awful too for most metrics. @JuliaVyse<\/a><\/p>\n\n\n\n

I second the BS recommendations. Also, ad strength which more often than not, gets used against us. Or it’s used as a weapon by Google when CC’ing a brand’s entire marketing team on how they can help OPtImIzE your account…@timmhalloran<\/a><\/p>\n\n\n\n

Bounce Rate – clients do not understand it and it can be easily gamed. @alimehdimukadam<\/a><\/p>\n\n\n\n

As mentioned above ad strength, I think clients think\u00a0is important for ad success, but I personal think it\u2019s just related to ticking Google boxes of headlines and descriptions they want to show. @JoeWilliams<\/a><\/p>\n\n\n\n

Ad Strength and Optiscore. I’ve seen too many cases where people have sabotaged their own accounts trying to score higher on these. @marketingsoph<\/a><\/p>\n\n\n\n

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PPCChat Participants<\/strong><\/p>\n\n\n\n