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All lessons in Google Ads for Beginners Lesson 4.3 of 24

Module 0: Introduction to PPC

  1. 0.1What is PPC?
  2. 0.2PPC vs SEO vs SEM
  3. 0.3How the Google Ads auction works
  4. 0.4PPC platforms compared

Module 1: Planning Your First Campaign

  1. 1.1Setting PPC goals
  2. 1.2Setting a Google Ads budget
  3. 1.3PPC keyword research
  4. 1.4Google Ads keyword match types
  5. 1.5Negative keywords

Module 2: Building the Campaign

  1. 2.1How to create a Google Ads account
  2. 2.2Campaign and ad group structure
  3. 2.3Location, language, and schedule
  4. 2.4Google Ads bidding strategies

Module 3: Writing Ads That Get Clicks

  1. 3.1How to write responsive search ads
  2. 3.2PPC ad copy formulas
  3. 3.3Google Ads assets
  4. 3.4PPC landing page best practices

Module 4: Tracking Results

  1. 4.1Google Ads conversion tracking
  2. 4.2What is Quality Score?
  3. 4.3PPC metrics that matter
  4. 4.4Google Ads search terms report

Module 5: Optimizing and Scaling

  1. 5.1Your first 30 days
  2. 5.2Common Google Ads mistakes
  3. 5.3Your PPC action plan

PPC metrics that matter

This lesson covers

  • The five PPC KPIs and their formulas
  • How to calculate them in pesos
  • Which metric matters most for your goal

Short answer

The key PPC KPIs are CTR (clicks ÷ impressions), CPC (cost ÷ clicks), conversion rate (conversions ÷ clicks), CPA (cost ÷ conversions), and ROAS (revenue ÷ cost). For lead businesses, CPA matters most. For online shops, ROAS matters most. CTR and CPC help you find why those numbers move.

The five KPIs

KPIFormulaTells you
CTRClicks ÷ impressions × 100How attractive your ad is
CPCCost ÷ clicksWhat each visit costs
Conversion rateConversions ÷ clicks × 100How well your page turns clicks into leads
CPACost ÷ conversionsWhat each lead or sale costs
ROASRevenue ÷ costPesos earned per peso spent

This CTR is an ad metric. It is different from organic CTR in Search Console, covered in our SEO lesson on Search Console metrics.

A peso example

A Cebu dental clinic runs ads for one month: 10,000 impressions, 500 clicks, ₱15,000 cost, 25 bookings, and ₱75,000 revenue from those patients.

From impressions to clicks to conversions with CTR, conversion rate, CPA and ROAS10,000impressions500clicks25bookingsCTR 5%Conv. rate 5%CPC ₱30CPA ₱600ROAS 5x₱15,000 cost · ₱75,000 revenue
Each step down the funnel gives you one KPI to watch.
  • CTR = 500 ÷ 10,000 = 5%
  • CPC = ₱15,000 ÷ 500 = ₱30
  • Conversion rate = 25 ÷ 500 = 5%
  • CPA = ₱15,000 ÷ 25 = ₱600 per booking
  • ROAS = ₱75,000 ÷ ₱15,000 = 5x, or ₱5 back per ₱1 spent

Is your CPA good?

Compare CPA to what a customer is worth. If an average patient pays ₱3,000 and your margin is 50%, you earn ₱1,500 per patient. A ₱600 CPA leaves room for profit.

Work out your break-even CPA: the most you can pay for one customer and still not lose money.

Try it: ROAS and CPA calculator

Enter your own numbers. The example values match the dental clinic above.

    Quick quiz

    1. CPA means:
    2. ₱10,000 cost and ₱40,000 revenue. ROAS is:
    3. Which KPI matters most for a lead business?

    Common mistakes

    • Judging success by clicks alone. Clicks do not pay bills.
    • Comparing your CTR to other industries. Compare to your own past results.
    • Ignoring revenue. Without it, you cannot know ROAS.
    • Looking at one day of data. Use at least a week, ideally a month.

    Your action

    Work out your break-even CPA and write it down. This is the number your campaign must beat.

    Key terms

    CTR (click-through rate)
    The percentage of people who clicked after seeing your ad.
    CPC (cost per click)
    What you paid per click on average.
    Conversion rate
    The percentage of clicks that became conversions.
    CPA (cost per acquisition)
    What you paid for each conversion.
    ROAS (return on ad spend)
    Revenue earned for each peso spent on ads.
    Break-even CPA
    The most you can pay for one customer without losing money.

    Questions beginners ask

    What is a good CTR for Google Ads?

    It varies by industry. Track your own trend over time instead of chasing a number.

    Can I track ROAS for a service business?

    Yes, if you assign a value to each lead or record sales offline.

    Related lessons

    Want someone to run your Google Ads while you learn? The team at Remar Digital can help.