CTR - Click-Through Rate
CTR (Click-Through Rate) is the ratio of users who click on your ad to the number of total users who view
it.
It helps measure how effective your ads are at attracting interest.
Formula: (Clicks ÷ Impressions) × 100
High CTR = Relevant Ad + Matching Audience
CPC - Cost Per Click
CPC refers to the amount you're charged each time someone clicks on your ad.
Lower CPC with high CTR = higher performance and ROI.
Formula: Total Cost ÷ Total Clicks
Google Ads uses auction bidding to determine CPC.
Conversions
A Conversion happens when a user takes a desired action after clicking your ad — such as making a purchase,
filling a form, or downloading an app.
Conversion tracking helps you measure ROI and optimize future ads.
Formula: Conversions ÷ Clicks × 100 = Conversion Rate
Google Ads Bidding Strategies
Choose the right bidding strategy based on your advertising goals and budget.
1. Maximize Clicks
Automatically sets bids to get as many clicks as possible within your budget.
Best for: Driving traffic to your website
Bid Adjustment Tip: Set a maximum CPC limit to control costs
2. Target CPA (Cost Per Acquisition)
Automatically sets bids to get as many conversions as possible at your target cost per acquisition.
Best for: Conversion-focused campaigns with historical data
Bid Adjustment Tip: Start with your average CPA, then adjust based on performance
3. Target ROAS (Return On Ad Spend)
Automatically sets bids to help you get the most conversion value at your target return on ad spend.
Best for: E-commerce businesses with conversion value tracking
Bid Adjustment Tip: Set realistic ROAS targets based on your profit margins
4. Maximize Conversions
Automatically sets bids to get the most conversions within your budget.
Best for: Campaigns focused purely on conversion volume
Bid Adjustment Tip: Combine with a budget cap to control spend
Max Clicks
Target CPA
Target ROAS
Max Conv.