In the fast-paced world of online advertising, harnessing the power of data is essential for achieving optimal results. One of the most popular digital advertising platforms, Google Ads, offers a wealth of data-driven insights that can help businesses thrive in the competitive landscape.
Understanding and effectively utilizing the formulas within Google Ads is key to unlocking its full potential. This article will explore essential Google Ads formulas that empower advertisers to make data-backed decisions, optimize campaign performance, and maximize their return on investment (ROI).
List of Google Ads Formula
- Click-Through Rate (CTR):
CTR = (Clicks / Impressions) x 100% - Conversion Rate (CR):
CR = (Conversions / Clicks) x 100% - Cost Per Click (CPC):
CPC = Cost / Clicks - Cost Per Acquisition (CPA):
CPA = Cost / Conversions - Return on Ad Spend (ROAS):
ROAS = (Revenue from Ad Campaign / Cost of Ad Campaign) x 100% - Ad Spend:
Ad Spend = Cost of Advertising - Impressions:
Impressions = Number of times ad is shown - Clicks:
Clicks = Number of clicks on ad - Conversions:
Conversions = Number of desired actions taken by users (such as purchases,
form fills, or app downloads) - Average Cost Per Click (Avg. CPC):
Avg. CPC = Total Cost / Total Clicks - Average Position:
Average Position = Sum of Ad Positions / Number of Ad Impressions - Quality Score:
Quality Score = Ad Relevance x Landing Page Experience x Expected ClickThrough Rate - Cost Per Impression (CPM):
CPM = Cost / Impressions x 1000 - Cost Per Thousand Impressions (CPM):
CPM = Cost / Impressions x 1000 - Ad Click-Through Conversion Rate (CTCR):
CTCR = (Conversions / Ad Clicks) x 100% - Conversion Value:
Conversion Value = Total value generated by conversions - Click Conversion Rate (CCR):
CCR = (Conversions / Clicks) x 100% - Conversion Value / Cost (CV/Cost):
CV/Cost = Conversion Value / Cost - Revenue:
Revenue = Total amount of revenue generated - Profit:
Profit = Revenue – Cost - Return on Investment (ROI):
ROI = (Revenue – Cost) / Cost x 100% - Search Impression Share:
Search Impression Share = (Number of impressions your ad received /
Estimated number of impressions you were eligible to receive) x 100% - Search Exact Match Impression Share:
Search Exact Match Impression Share = (Number of impressions you
received on searches that exactly matched your keyword / Estimated
number of exact match impressions you were eligible to receive) x 100% - Search Lost IS (Rank):
Search Lost IS (Rank) = (Estimated number of impressions you lost due to
low ad rank / Estimated number of impressions you were eligible to
receive) x 100% - Search Lost IS (Budget):
Search Lost IS (Budget) = (Estimated number of impressions you lost due to
insufficient budget / Estimated number of impressions you were eligible to
receive) x 100% - Video View Rate (VVR):
VVR = (Video views / Ad impressions) x 100% - View-Through Conversions (VTC):
VTC = Number of users who saw an ad but did not click on it, and later
converted on the website - Cost Per View (CPV):
CPV = Cost / Views - Engagement Rate (ER):
ER = (Engagements / Impressions) x 100% - Social Reach:
Social Reach = Total number of unique users who saw your ad on social
media - Social Impressions:
Social Impressions = Total number of times your ad was shown on social
media - Social Clicks:
Social Clicks = Total number of clicks on your ad on social media - Frequency:
Frequency = Impressions / Reach - Average Ad Position:
Average Ad Position = Total Ad Position / Number of Ad Impressions - Search Lost IS (Rank) due to Bid:
Search Lost IS (Rank) due to Bid = (Estimated number of impressions you
lost due to low ad rank from bid / Estimated number of impressions you
were eligible to receive) x 100% - Search Lost IS (Rank) due to Ad Relevance:
Search Lost IS (Rank) due to Ad Relevance = (Estimated number of
impressions you lost due to low ad relevance / Estimated number of
impressions you were eligible to receive) x 100% - Search Lost IS (Rank) due to Expected CTR:
Search Lost IS (Rank) due to Expected CTR = (Estimated number of
impressions you lost due to low expected click-through rate / Estimated
number of impressions you were eligible to receive) x 100% - Search Top Impression Share:
Search Top Impression Share = (Number of times your ad showed at the top
of the search results / Estimated number of impressions you were eligible
to receive at the top of the search results) x 100% - Search Absolute Top Impression Share:
Search Absolute Top Impression Share = (Number of times your ad showed
as the very first ad above the organic search results / Estimated number of
impressions you were eligible to receive in the absolute top location) x
100% - Display Network Impression Share:
Display Network Impression Share = (Number of times your ad was shown
on the Google Display Network / Estimated number of impressions you
were eligible to receive on the Display Network) x 100% - Display Network Reach:
Display Network Reach = Number of unique users who saw your ad on the
Google Display Network - Cost Per Acquisition (CPA) by Location:
CPA by Location = Cost / Conversions by Location - Cost Per Click (CPC) by Location:
CPC by Location = Cost / Clicks by Location - Conversion Rate (CR) by Location:
CR by Location = (Conversions by Location / Clicks by Location) x 100% - Click-Through Rate (CTR) by Device:
CTR by Device = (Clicks on Device / Impressions on Device) x 100% - Cost Per Click (CPC) by Device:
CPC by Device = Cost on Device / Clicks on Device - Conversion Rate (CR) by Device:
CR by Device = (Conversions on Device / Clicks on Device) x 100% - Click Share:
Click Share = (Clicks received / Clicks expected) x 100% - Impression Share:
Impression Share = (Impressions received / Impressions expected) x 100% - Search Impression Share (Exact Match):
Search Impression Share (Exact Match) = (Number of exact match
impressions / Estimated number of exact match impressions you were
eligible to receive) x 100% - Search Impression Share (Broad Match):
Search Impression Share (Broad Match) = (Number of broad match
impressions / Estimated number of broad match impressions you were
eligible to receive) x 100% - Conversion Value / Cost by Location:
Conversion Value / Cost by Location = Conversion Value by Location / Cost
by Location - Average Session Duration:
Average Session Duration = Total duration of all sessions / Total number of
sessions - Bounce Rate:
Bounce Rate = (Total number of bounces / Total number of sessions) x
100% - Conversion Rate (CR) by Gender:
CR by Gender = (Conversions by Gender / Clicks by Gender) x 100% - Click-Through Rate (CTR) by Age:
CTR by Age = (Clicks by Age / Impressions by Age) x 100% - Cost Per Click (CPC) by Age:
CPC by Age = Cost by Age / Clicks by Age - Conversion Rate (CR) by Income:
CR by Income = (Conversions by Income / Clicks by Income) x 100% - Click-Through Rate (CTR) by Parental Status:
CTR by Parental Status = (Clicks by Parental Status / Impressions by Parental
Status) x 100% - Cost Per Click (CPC) by Parental Status:
CPC by Parental Status = Cost by Parental Status / Clicks by Parental Status - Cost Per Click (CPC) by Device and Location:
CPC by Device and Location = Cost by Device and Location / Clicks by Device
and Location - Conversion Rate (CR) by Device and Location:
CR by Device and Location = (Conversions by Device and Location / Clicks by
Device and Location) x 100% - Return on Ad Spend (ROAS) by Campaign:
ROAS by Campaign = Conversion Value / Cost by Campaign - Average Cost Per Impression (CPM):
CPM = Cost / Impressions x 1000 - View-Through Conversions (VTC):
VTC = Number of conversions that occurred after a user saw, but did not
click, an ad - View-Through Conversion Rate (VTCR):
VTCR = (View-Through Conversions / Impressions) x 100% - Effective Cost Per Mille (eCPM):
eCPM = (Total earnings / Impressions) x 1000 - Ad Relevance:
Ad Relevance = Quality Score component measuring how relevant your ad
is to the keywords it’s triggered by - Expected Click-Through Rate (eCTR):
eCTR = Quality Score component measuring how likely your ad is to be
clicked when shown for a particular keyword - Landing Page Experience:
Landing Page Experience = Quality Score component measuring how
relevant and useful your landing page is to someone who clicks your ad - Display Network Click-Through Rate (CTR):
Display Network CTR = (Clicks on Display Network / Impressions on Display
Network) x 100% - Display Network Cost Per Click (CPC):
Display Network CPC = Cost on Display Network / Clicks on Display Network - Display Network Conversion Rate (CR):
Display Network CR = (Conversions on Display Network / Clicks on Display
Network) x 100% - Conversion Value by Ad Group:
Conversion Value by Ad Group = Total value of all conversions from a
specific ad group - Cost per Conversion by Ad Group:
Cost per Conversion by Ad Group = Total cost of all clicks from a specific ad
group / Total number of conversions from that ad group - Impression-Assisted Conversions:
Impression-Assisted Conversions = Number of conversions that a user saw
but did not click on an ad, but were influenced by an ad impression on their
path to conversion - Click-Assisted Conversions:
Click-Assisted Conversions = Number of conversions that were preceded by
at least one ad click
