Essential SEM Metrics That Actually Matter in 2025

Want to know the secret to crushing your SEM campaigns?

(Besides hiring Loganix, of course, 😉)

Metrics. But not just any metrics—I’m talking metrics that actually matter.

Metrics that give you a clear picture of your campaign performance and help you make data-driven decisions.

Everything you need to know, right 👇

Essential SEM Metrics to Track in 2025

To make things super easy for you, for each of the below metrics, I’ve added

1. a quick definition,
2. calculation method,
3. benchmarks,
4. and optimization tips.

There’s a bunch here, so at any point, feel free to skip ahead.

1. Campaign Performance Metrics

Let’s start with campaign performance metrics:

Impressions

Impressions are the number of times an ad is displayed on search engine results pages (SERPs) or other websites.

Calculation method: Each time the ad is shown, it counts as a single impression. In some cases, only a portion of an ad may be shown, but this still counts as an impression.

Benchmarks: A healthy campaign has an impression share of 60-80%. This means the ads are showing up for 60-80% of the available impressions for chosen target keywords.

Optimization tips:

• Ensure ads are shown to the most relevant audience by using detailed targeting options like demographics, interests, and search queries.
• A higher-quality ad is more likely to be displayed. Focus on creating compelling ad copy, using relevant keywords, and choosing the right ad formats.
• While not always the most cost-effective strategy, increasing bids can improve an ad’s position and increase impression share.

Clicks

Clicks represent the number of times users click on an ad, taking them to a website or landing page.

Calculation method: Each time a user clicks on an ad, it is counted as one click.

Benchmarks: For every 100 impressions, the average ad receives 4-6 clicks, so as a minimum, aim for these numbers.

Optimization tips:

• Write compelling ad copy that’s relevant to the target keywords and includes a clear call to action.
• Ensure ads are being shown to the most relevant audience by using detailed targeting options.
• Ad extensions can make ads more appealing, which can lead to more clicks. Optimize, optimize, optimize.

CTR

CTR measures the percentage of users that click on an ad after seeing it.

Calculation method: CTR = (Clicks / Impressions) x 100

Benchmarks: The average click-through rate (CTR) across all industries is 4-6%. Some industries, like travel, automotive sales, and real estate, average 7-9%.

Optimization tips:

• Use clear, concise, and persuasive language that highlights the benefits of a product or service.
• Ensure the ads are shown to the most relevant audience by using detailed targeting options, such as demographics, interests, and search queries.
• Enhance ads with extensions like sitelinks, callouts, and location extensions to provide additional information and make them more prominent.

CPC

Cost-per-click (CPC) is the average amount advertisers pay each time a user clicks on an ad.

Calculation method: CPC = Total ad spend / Number of clicks

Benchmarks: Below, you’ll find the average Google Ads CPC for different US industries:

Optimization tips:

• A higher Quality Score can lead to lower CPCs. Focus on creating relevant and compelling ads that have a high click-through rate (CTR).
• Target ads to the most relevant audience to avoid wasting money on clicks from people who are unlikely to convert.
• Long-tail keywords are more specific and less competitive, which can often lead to lower CPCs.

Quality Score

Quality Score is an estimate of the quality of ads, keywords, and landing pages. It is calculated on a scale of 1 to 10, with 10 being the best.

Calculation method: Google doesn’t disclose exactly how they calculate Quality Score, but it is generally understood to be a combination of factors such as expected CTR, ad relevance, and landing page experience.

Benchmarks: A higher score generally indicates that your ads, keywords, and landing pages are relevant, high-quality, and likely to perform well.

Optimization tips:

• Make sure ads are closely related to target keywords and the user’s search intent.
• Create landing pages that are relevant, informative, and user-friendly.
• Write compelling ad copy that encourages users to click.
• Choose keywords that are relevant to ads and landing pages.
• Regularly check Quality Scores and identify areas for improvement.

2. Conversion Metrics

You now know how to track ad performance, but what about conversions? Let’s take a look:

Conversion Rate

Conversion rate is the percentage of visitors who complete a specific action on a website, such as making a purchase.

Calculation method: Conversion rate = Number of conversions / Total number of visitors

Benchmarks: A healthy website has a conversion rate of 2-5%.

Optimization tips:

• A user-friendly website with easy navigation, engaging content, and clear calls to action can encourage conversions.
• Test different versions of landing pages, ad copy, and calls to action to see what resonates best with a site’s audience and drives the most conversions.
• Use retargeting to show ads to people who have previously visited a website but didn’t convert.

Cost Per Conversion

Cost per conversion (CPConv) is the average amount an advertiser spends to acquire each conversion, such as a sale, lead, or sign-up.

Calculation method: CPConv = Total ad spend / Number of conversions

Benchmarks: Aim for a CPConv that is lower than your customer lifetime value (CLTV).

Optimization tips:

• A higher conversion rate will naturally lead to a lower CPConv.
• Target ads to the most relevant audience.
• Use automated bidding strategies or manual bidding adjustments.
• A higher Quality Score can lead to lower CPCs, which can also lower CPConv.

Revenue

Revenue is the total income generated from SEM campaigns (typically measured in USD).

Calculation method: Revenue is calculated by multiplying the number of conversions by the average order value (AOV). For example, if you had 100 conversions with an AOV of $50, revenue would be $5,000.

Benchmarks: Aim for revenue that exceeds ad spend, resulting in a positive return on investment (ROI).

Optimization tips:

• Focus on optimizing landing pages, calls to action, and overall website experience to encourage conversions.
• Encourage customers to spend more by offering upsells, cross-sells, or discounts on larger orders.
• Focus on keywords that are likely to lead to high-value conversions.

ROAS

ROAS is the amount of revenue generated for every dollar spent on advertising. It’s typically expressed as a ratio or a percentage.

Calculation method: ROAS = Revenue / Ad spend

Benchmarks: A good ROAS is typically considered to be 4:1 or higher, meaning that for every dollar you spend, you generate $4 in revenue.

Optimization tips:

• Focus on optimizing landing pages, calls to action, and overall website experience to encourage conversions.
• Identify and eliminate low-performing keywords, ads, or campaigns that are not generating a positive ROAS.
• Target your ads to the most relevant audience to ensure you’re reaching people who are likely to convert and generate revenue.

Attribution

Attribution assigns credit for conversions to different touchpoints in the customer journey.

Calculation method: There are various attribution models, each with its own way of assigning credit. Some common models include:

• Last click: Gives all the credit to the last touchpoint before the conversion.
• First click: Gives all the credit to the first touchpoint.
• Linear: Distributes credit evenly across all touchpoints.
• Time decay: Gives more credit to touchpoints closer to the conversion.
• Position-based: Gives more credit to the first and last touchpoints.
• Data-driven: Uses machine learning to assign credit based on historical data.

Benchmarks: Aim for an attribution model that aligns with specific business goals and provides a balanced view of the customer journey.

Optimization tips:

• Select the model that best reflects how customers interact with a brand.
• Use attribution reports to understand how different channels and touchpoints contribute to conversions.
• Adjust marketing campaigns based on attribution data to improve their effectiveness.
• Recognize that most conversions involve multiple touchpoints and don’t rely solely on single-touch attribution models.

3. Budget Metrics

So, you’re banking some conversions. Nice! How about budgeting, though? Check it out:

Ad Spend

Ad spend is the total amount of money advertisers spend on SEM campaigns. It includes all costs associated with ads, such as clicks, impressions, and ad platform fees.

Calculation method: Ad spend is calculated by multiplying the number of clicks or impressions by cost-per-click (CPC) or cost-per-thousand-impressions (CPM), respectively. Some platforms might also include additional fees, such as management fees or platform fees, in the total ad spend calculation.

Benchmarks: A good place to start is to designate a small budget and gradually increase it as you see positive results and optimize your campaigns.

Optimization tips:

• Monitor ad spend regularly to see where the money is going and identify any areas where you might be overspending or underutilizing the budget.
• Consider using automated bidding strategies to help optimize bids and achieve campaign goals more efficiently.
• Don’t be afraid to experiment with different budgets to see how it impacts your campaign performance.

Budget Utilization

Budget utilization is the percentage of the allocated budget that is actually being spent on SEM campaigns.

Calculation method: Budget utilization = (Actual ad spend / Total budget) x 100

Benchmarks: Aim for a utilization rate of 80-95%. This means that you’re spending most of your budget without exceeding it.

Optimization tips:

• Analyze campaign performance and identify any campaigns that are not generating a positive return on investment (ROI). Consider pausing or reallocating the budget from these campaigns to your top performers.
• Experiment with different bidding strategies to see how they impact your budget utilization and overall campaign performance.
• Ensure ads are reaching the most relevant audience to avoid wasting money on clicks from people who are unlikely to convert.

CPA

Cost per Acquisition (CPA) is the average amount an advertiser spends to acquire a conversion.

Calculation method: CPA = Total ad spend / Number of new customers

Benchmarks: Aim for a CPA that is lower than your customer’s lifetime value (CLTV). This means that you’re spending less to acquire a customer than they are worth to your business over their lifetime.

Optimization tips:

• A higher conversion rate will naturally lead to a lower CPA.
• Target your ads to the most relevant audience.
• Use automated bidding strategies or manual bidding adjustments.
• A higher Quality Score can lead to lower CPCs, which can also lower your CPA.

ROI

Return on Investment (ROI) is the profit generated from SEM campaigns, calculated as a percentage of your ad spend.

Calculation method: ROI = (Revenue – Ad spend) / Ad spend

Benchmarks: Aim for an ROI that is at least positive, meaning that you’re generating more revenue than you’re spending on advertising.

Optimization tips:

• Focus on optimizing your landing pages, calls to action, and overall website experience to encourage conversions.
• Identify and eliminate low-performing keywords, ads, or campaigns that are not generating a positive ROI.
• Monitor ROI regularly to see how campaigns are performing and identify any trends or areas for improvement.

Bidding Efficiency

Bidding efficiency is a measure of how effectively you’re using your bids to win ad auctions and achieve your campaign goals.

Calculation method: There’s no single formula for calculating bidding efficiency, as it can be measured in different ways depending on your specific goals and bidding strategy. However, some common metrics used to assess bidding efficiency include:

• Average CPC: Are you paying a reasonable price for each click?
• Conversion rate: Are your bids leading to conversions, or are you just paying for clicks that don’t result in any valuable actions?
• Impression share: Are your bids competitive enough to win a significant share of the available impressions?
• Quality Score: A higher Quality Score can improve your ad’s position and lower your CPC, which can contribute to better bidding efficiency.

Benchmarks: Aim for a bidding strategy that allows you to achieve your desired outcomes (such as conversions or brand awareness) at a cost that’s within budget and provides a positive return on investment (ROI).

Optimization tips:

• Automated bidding strategies help optimize bids based on specific goals and real-time auction data.
• Keep a close eye on bids and adjust them as needed to ensure you’re staying competitive without overspending.
• Experiment with different bidding strategies to see which ones work best for your campaigns and goals.

4. Ad Quality Metrics

In the campaign performance section, we tackled Quality Scores head-on. But what metrics can you track that’ll help steer these scores in the right direction? Let’s take a look:

Landing Page Experience

Landing page experience is a measure of how relevant, useful, and user-friendly a landing page is to the people who click on an ad.

Calculation method: Google doesn’t disclose the exact formula for calculating landing page experience, but it’s likely based on factors such as page speed, mobile-friendliness, navigation, content relevance, and user engagement.

Benchmarks: Aim for a page that loads quickly, is easy to navigate, and provides relevant and valuable information to the user.

Optimization tips:

• Optimize images, minify code, and leverage browser caching to ensure a landing page loads quickly.
• Ensure the landing page is responsive and provides a seamless experience on all devices.
• Get to the point quickly and use language that’s easy for a target audience to understand.
• Tell visitors what you want them to do and make it easy for them to take action.
• Include testimonials, reviews, and security badges to build trust with a site’s visitors.

Ad Relevance

Ad relevance is a measure of how closely ads match the user’s search intent and targeted keywords.

Calculation method: Google doesn’t disclose the formula for calculating ad relevance, but it’s likely based on factors such as the keywords in an ad’s copy and the relevance of the landing page.

Benchmarks: Aim for ads that are clearly related to the targeted keywords and provide a seamless transition to a site’s landing page.

Optimization tips:

• Include target keywords in the ad copy. Focus on using them naturally and strategically.
• Organize keywords into tightly themed ad groups to ensure that the ads are relevant to the keywords they’re targeting.
• Use ad extensions to provide additional information and make ads more relevant to specific search queries.

Expected CTR

Expected click-through rate (CTR) is an estimate of how likely someone is to click on an ad.

Calculation method: Google doesn’t say how they calculate expected CTR, but it’s likely based on factors such as an ad’s historical performance, its relevance to the search query, and the overall user experience of a landing page.

Benchmarks: Aim for an “above average” Quality Score rating.

Optimization tips:

• Use clear, concise, and persuasive language that highlights the benefits of a product or service. Include a strong call to action that encourages users to click.  
• Make sure landing pages are relevant to the placed ads, load quickly, and provide a positive user experience.
• Enhance ads with extensions like sitelinks, callouts, and location extensions to provide additional information and make them more prominent.

Ad Position

Ad position is the position where an ad appears on the search results page. It’s typically numbered from 1 to 4, with 1 being the top position.

Calculation method: Ad position is determined by Google’s ad auction, which takes into account your bid, ad quality, and other factors.

Benchmarks: A good benchmark is to aim for a position within the top 2, where an ad is more likely to be seen, trusted, and clicked on.

Optimization tips:

• Focus on creating relevant, compelling, and user-friendly ads that have a high expected CTR and a positive landing page experience.
• Choose keywords that are relevant to a site and have a high search volume.
• Regularly track ad positions and make adjustments to bids or ad quality as needed.

5. Audience Metrics

Last, your audience. Who are they, where are they from, and what are they getting up to? Let’s find out:

Demographics

Demographics are the characteristics of an audience, such as age, gender, location, education, income, interests, and behavior.

Calculation method: Demographic data is typically collected through analytics platforms like Google Analytics, which track user behavior and gather information about their demographics based on their online activity and browsing history.

Benchmarks: Benchmarks for demographics will vary depending on the target audience and industry. However, keep in mind the demographic makeup of an audience. Why? It’ll better the chances your campaigns reach the right people.

Optimization tips:

• Use Google Analytics to understand the demographics of current website visitors. This will give you a baseline to compare your SEM audience to.
• Use demographic targeting options in your SEM platform of choice to ensure ads are being shown to the most relevant audience.
• Create ad copy that resonates with a target audience’s demographics. For example, if you’re targeting young adults, you might use a more casual and playful tone.

Device Usage

Device usage refers to the types of devices an audience uses to access a website and ads, such as desktops, laptops, smartphones, and tablets.

Calculation method: Device usage data is typically collected through analytics platforms like Google Analytics, which track user sessions and identify the devices used to access the website.

Benchmarks: Benchmarks for device usage vary depending on the industry and target audience. Just keep in mind the device preferences of an audience. That way, you can optimize the landing pages and ads for the devices a site’s audience is most likely to be using.

Optimization tips:

• Ensure the website is responsive and provides a seamless experience on mobile devices.
• Target ads to specific devices based on an audience’s preferences and a campaign’s goals.
• Track campaign performance across different devices to identify any discrepancies or opportunities for optimization.

Geographic Data

Geographic data refers to the location of audience members, including their country, region, city, and even zip code.

Calculation method: Geographic data is typically collected through IP addresses, which can be used to identify the general location of a user. More advanced methods, such as GPS tracking or user-provided location information, can provide more precise location data.

Benchmarks: Benchmarks for geographic data will vary depending on a target audience and business goals, so I’m going to pull the old “it depends” card here.

Optimization tips:

• Target ads to specific locations based on an audience’s location and a site’s goals.
• Adjust ad copy and website content to resonate with the cultural context of different regions.
• Add location extensions to ads to show a business’s address and make it easier for local customers to find a site.
• If you’re targeting a global audience, make sure the website is translated and localized for different regions.

Time Patterns

Time patterns refer to when an audience is most active online, including the time of day, day of the week, and even seasonal trends.

Calculation method: Time pattern data is typically collected through analytics platforms like Google Analytics, which track user sessions and record the time of each visit.

Benchmarks: Understand when an audience is most active online to ensure that campaigns and content are reaching them at the right time.

Optimization tips:

• Adjust ad scheduling and bidding strategies to target an audience when they’re most active online.
• Publish content at times when an audience is most likely to see and engage with it.
• If you have a global audience, remember to consider different time zones when scheduling campaigns and content.

Behavior

Behavior metrics track how users interact with a website, including the pages they visit, the links they click, the time they spend on each page, and the actions they take.

Calculation method: Behavior data is typically collected through analytics platforms like Google Analytics, which tracks user interactions and provides detailed reports on website activity.

Benchmarks: Some general benchmarks to aim for include a low bounce rate, a high average session duration, and a high number of pages per session.

Optimization tips:

• Use Google Analytics to understand an audience’s behavior on a website. Identify popular pages, common user paths, and areas where users are dropping off or encountering difficulties.
• Make sure a website is easy to navigate, visually appealing, and mobile-friendly.
• Craft content that is relevant, informative, and entertaining to keep users engaged and encourage them to explore a website further.

Conclusion and Next Steps

And boom! Metrics up to your eyeballs. No doubt that’ll keep you busy for a while.

Still feeling a little stuck?

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