How to Measure the Success of Your Google Ads Agency

Hiring an agency to run Google Ads for your ecommerce store can be a massive time-saver, but it does come with one big challenge:

How do you know if they’re really moving the needle for your business?

If you're not already a Google Ads expert, it’s easy to get overwhelmed by the sheer number of metrics to track and consider when assessing agency performance.

This very same question came up in an ecommerce community that I write for, and here’s what I advised the store owner.

Revenue or Profit: What's Your Focus?

The first thing you need to do is decide what you want to prioritise — revenue or profit. This is crucial because it will shape how you assess the agency’s performance.

Here’s the thing:

You can grow both revenue and profit, but it’s important to have one clear goal at a time for at least a few months. Changing goals too frequently just leads to confusion for both you and the agency.

Once you've made up your mind, you can break it down like this:

If Revenue is Your Priority:

• Measure Revenue Growth and ROAS (Return on Ad Spend): Set clear goals for both. For example, you might aim for 50% year-on-year revenue growth while maintaining a minimum ROAS of 400%.

• Make Goal Setting a Collaborative Process: You provide your targets, and the agency can then give feedback. They might adjust the goal if they feel it’s unrealistic, and you should listen carefully to their reasoning.

If Profit is Your Priority:

• Calculate Gross Profit After Ad Spend (GPAAS): This metric measures your profit after accounting for ad costs. You’ll need to define your profit equation upfront and stick with it. Don’t change it month-to-month; keep things simple and consistent.

• Incorporate GPAAS into Reporting: Ask your agency to add a GPAAS column to their reports so you can track this over time. As with revenue, set a goal, review their feedback, and once you’re both happy with the target, lock it in for at least three months.

Incrementality and Tracking the Right Metrics

So, now you have your goals.

But how do you track progress and know if the agency is actually driving incremental growth? It’s easy to get bogged down by the wrong metrics, so focus on what's important.

Use Google In-Platform Data

When tracking performance, the simplicity and speed of using Google Ads' in-platform numbers outweigh the need for total accuracy. While Google’s numbers might not always reflect the complete truth, they generally correlate closely with real results. The key is consistency. If you know Google tends to over-report revenue by 10%, just factor that into your goals.

In other words, don’t chase perfection. By using the data available within the Google Ads platform, your agency can optimise campaigns more efficiently, making adjustments faster and improving your results.

Consider Third-Party Attribution—If You Must

If you find that Google’s reporting just isn’t accurate enough for your business, you can explore using a third-party attribution tool. However, bear in mind that there’s no one-size-fits-all solution here. The tool you choose depends on your product, audience, and the other platforms you’re using for marketing.

Regardless of whether you stick with Google’s numbers or use a third-party tool, the most important thing is clarity. Make sure you and your agency agree on the approach upfront, and don’t change it later. Keep things simple and consistent.

Setting Realistic Goals

Whatever your priority—revenue or profit—setting a realistic goal is vital. Your target should be ambitious but achievable. Collaborate with your agency to ensure they understand your business’s limitations and possibilities.

• Review Periods: After 3, 6, or 12 months (depending on your preference), you should review the results and set new targets. This process of setting and reviewing goals helps you stay on track without micromanaging the agency’s work.

• Avoid Changing Metrics: Once you’ve locked in your target and the method of measurement, don’t change it. Consistency leads to more reliable insights over time. Changing things frequently will only confuse the agency and make it harder to determine what's working.

Keep Things Simple and Consistent

In short, when you’re measuring the success of your Google Ads agency, the most important factors are simplicity and consistency.

Decide whether your priority is revenue or profit, and track performance using GPAAS or Google’s in-platform data.

Set clear goals, make sure your agency understands them, and resist the urge to constantly change things. Over time, this approach will give you a clear view of whether your agency is worth their fee.

I hope this helps you make a smart decision when working with your Google Ads agency!

Boost Your Google Ads CTR and Lower CPC with These Responsive Search Ads Tips

If you’re struggling to get your click-through rates (CTR) up and your cost per clicks (CPC) down with Google Ads, I have just what you need.

Today, I’m sharing the Responsive Search Ads (RSA) best practices that have worked wonders for me and my clients—some of whom generate tens of millions in revenue.

Let’s dive right into the practical steps you can take to start optimising your responsive search ads and drive more conversions.

Use a Headline Formula – Here’s Mine

When it comes to Google Ads, the headlines you craft for your RSAs have a huge impact on your CTR. I always say that the headline carries far more weight than the description, so it’s worth putting your effort here.

Here’s the formula I use across all our client accounts:

Headline Formula:

• 3 Brand headlines

• 3 Feature/Benefit/USP headlines

• 3 Keyword Relevance headlines

• 3 Call to Action headlines

• 3 Flex headlines

How It Works:

1. 3 Brand Headlines
   First, ensure you’ve got three headlines that mention your brand. You want to be promoting your name and reputation, so include your brand name here in different variations.

2. 3 Feature/Benefit/USP Headlines
   Next, focus on what makes your product or service stand out. These headlines should highlight key features, benefits, or unique selling points (USPs) that differentiate you from competitors.

3. 3 Keyword-Relevance Headlines
   Your most important and highly searched keywords should appear here. Use the exact terms that you’re targeting in your ad groups. Relevant headlines increase the likelihood of engagement by matching what people are actively searching for.

4. 3 Call-to-Action (CTA) Headlines
   Tell your audience what to do next. While simple CTAs like “Buy Now” or “Sign Up Today” work, you can add some flair and relevance to these. For example, an eye supplement brand could say something like, “Get Clearer Vision Today.”

5. 3 Flex Headlines
   These are wildcard headlines where you can experiment. You could add another keyword-relevant headline, feature a different USP, or include an extra CTA. Be creative and see what works best!

Go For Variety in Headlines & Descriptions

When it comes to RSAs, variety is key.

Google Ads performs best when there’s a mix of different headlines and descriptions to test. This allows Google’s algorithm to experiment with various combinations and find the ones that perform best.

For example, don’t simply repeat variations of the same CTA, like “Buy Now,” “Buy Today,” and “Buy Here”—it’s repetitive and won’t give the algorithm much to work with. Instead, mix it up with more engaging lines like “Upgrade Your Eyes” or “Get Clearer Vision Today.”

The more diverse your ad elements, the better chance you give Google to find a winning combination, which means higher CTR and lower CPC in the long run.

Don’t Sweat the Ad Strength Rating

You’ll notice Google gives your ads an “Ad Strength” rating as you build them. It’s a helpful guide when you’re getting started, and you should aim for a “Good” rating, at least.

That said, ad strength is not a true performance indicator. Metrics like CTR, cost per conversion, and return on ad spend (ROAS) are what really matter. You can have an ad that doesn’t get an “Excellent” rating, but still performs exceptionally well.

Use ad strength as a guide in the early stages but focus on actual performance metrics as you get more data.

Structure Your Ad Groups for Success

The structure of your ad groups is vital for the performance of your RSAs. Here’s how to get it right.

Ad groups are collections of keywords that share the same set of ads. So, you want to ensure each ad group contains closely related keywords.

Let’s say you’re a roofing company offering both roof repair and roof installation services. These should be separate ad groups.

This way, you can create ads that speak directly to the unique needs of each customer type and optimise your ad copy for relevance.

Set Assets (Extensions) at Account Level

Responsive search ads in Google give you the option to add various assets—like images, business names, and logos—below your headlines and descriptions. While you should fill out all the asset types available, you don’t have to do this for each ad group.

A time-saving tip: set your assets at the account level, and they will automatically apply to all your ad groups and campaigns. This means you only have to add them once!

Use Keywords in the Display Path

An easy way to boost your CTR is to include keywords in the display path of your ads. This small detail often gets overlooked, but it can make a big difference. When you’re creating your ads, take a moment to fill in the display path with relevant keywords from your ad group. This is a quick and free optimisation you can implement in seconds.

Optimise Low-Performing Assets

Once your RSAs have been running for a while, it’s time to come back and review performance. Look at the specific performance of each headline and description, and optimise where needed. If a headline or description is underperforming, replace it with something new.

Inside Google Ads, you can click on “View Asset Details” under each RSA to see how each element is performing. Generally, you want every element to have at least a “Good” rating. Anything lower than that should be swapped out.

That’s it! Follow these responsive search ads best practices, and you’ll start seeing higher CTR and lower CPC, bringing in more sales and improving the profitability of your campaigns.

Summary

In this newsletter, I covered the key best practices for creating high-performing Responsive Search Ads in Google Ads. You can boost your click-through rates (CTR) and lower your cost per click (CPC) by:

• Using a structured headline formula to balance branding, benefits, keyword relevance, and calls to action.

• Incorporating variety in your headlines and descriptions to give Google more combinations to test.

• Paying attention to ad strength but focusing more on performance metrics like CTR and return on ad spend (ROAS).

• Structuring your ad groups around tightly themed keywords for better relevance and results.

• Setting ad assets at the account level to save time and effort.

• Including relevant keywords in the display path for a quick boost in CTR.

• Optimising low-performing assets by regularly reviewing and updating your ad elements.