Google’s internet advertising platform is called Google Ads. You can create online ads using Google Ads to target consumers at precisely the right time when they’re looking for the products and services you provide.
Google uses a plethora of formulas to calculate everything related to ads such as click-through rate, cost per 1000 impressions, conversions rate, and so on. As a digital marketer, you should be familiar with all of the common Google ads formulas so that you can calculate various metrics and make better decisions when you begin advertising on the Google Ad Network.
The following are some of the most commonly used Google ads formulas to calculate various Google Ads Metrics.
1. CTR (Click-Through Rate) = Clicks / Impressions X 100
2. CPM (Cost Per Impression) = Cost / 1000 Impressions
3. CPA (Cost Per Conversion) = Cost / Conversion
4. CPC (Cost Per Click) = Cost / Clicks
5. Conversion Rate = Conversion / Clicks X 100
6. CPE (Cost Per Engagement) = Cost / Engagement
7. Total Cost = Clicks X Cost Per Click
8. ROAS (Return On Ad Spend) = Total Revenue / Total Spend
9. Ad Rank = CPC X (Quality Score + Ad-Extension)
10. Quality Score = Depends on CTR, Landing Page, Ad Relevance
11. ACOS (Average Cost of Sale) = Cost / Revenue
12. AOV (Average Order Value) = Revenue / Conversions
13. Revenue Per Click = Revenue / Click
14. Revenue Per Impression = Revenue / Impressions
15. CPV (Cost Per View) = Cost / Views
16. Impression Share = Impressions / Total Available Impressions
17. ROI (Return On Investment) = (Total Revenue-Total Spend) / Total Spend *100
18. Actual CPC = Ad rank of your nearest competitor/ Your Quality Score +0.01 $
19. Average View Rate = Total Video View Time / Video Starts) / Video Length
20. Average View Time = Total Video View Time / Video Starts
21. Completion Rate = Video Completes / Video Starts
22. Average Interaction Rate = Total Video Interactions / Total Video Starts
23. VTR (View Through Rate) = Total Number of Views / Total Impressions x 1000
24. LTV (Life Time Value) = Average Revenue Per User X Average Length of Relationship (in Years)
25. CAC (Customer Acquisition Cost) = Sales & Marketing Expenses / New Customer Acquired
26. Bounce Rate = Single Page Visits / Total Visits X 100
27. Engagement Rate = Engagements / Impressions X 100
