How To Analyze Your Google Shopping Ads Performance

Google Shopping Ads is a growing digital marketing channel that offers an easy-to-use and dynamic platform to connect with your target audience. A Google Shopping Ad includes details such as price, merchant name, and a photo. Consumers who Google similar products will see your ads, leading to increased chances of conversions for your website.

Key Performance Indicators For Your Google Shopping Ads


An impression is counted every time your advertisement appears in Google search results or the Google Network. Impressions help you measure how often your ad is displayed and are a good place to start analyzing your ad performance since impressions give you a baseline understanding of how often people are seeing your ads. Note that you pay for every 1,000 impressions you generate.

Cost-Per-Click (CPC)

There is a fixed rate charged for every click on a CPC ad. CPC is an easy-to-control and flexible method to attract your target audience. To make your ads more relevant to your target audience, specify the keywords you use based on common search terms your audience use when looking for information on Google. This will also reduce the number of clicks acquired from people outside of your target audience.


Conversion Rate

The conversion rate of your ads is the average number of conversions per ad click, displayed in a percentage. To find your conversation rate you can simply divide the number of conversions by the total number of ad clicks. This tells you how many people convert to a sale or action from your ads.


Click-Through Rate (CTR)

The click-through rate tells you the percentage of people that have clicked through on your ad after seeing it in their search results. You can use this metric to analyze your Google Shopping Ads effectiveness. To increase your CTR, prioritize keywords and content relevant to your target audience. A/B testing alternative headlines, ad descriptions, URLs, and landing pages are also an effective way to optimize your ads and improve click-through rates.

Return on Investment (ROI)

Return on investment (ROI) measures how much profit your ad generated relative to how much you invest in the ad. The formula for calculating ROI is included below:


Revenue – Cost of Goods Sold


Cost of Goods Sold


Key Performance Indicators (KPIs) For Google Shopping Ads

KPIs are important for measuring the success of your Google Shopping Ads and finding new opportunities to further optimize your ads with A/B tests. The KPIs discussed above are simple to monitor, understand, and analyze, and can help you gain significant insight on your ads without needing to spend significant amounts of time analyzing numbers.