Top KPIs to Track for eCommerce PPC Performance

Running a successful pay-per-click (PPC) campaign for your online store involves more than just launching ads and waiting for results. To get a true picture of performance, you need to measure the right KPIs or Key Performance Indicators. These metrics help you determine whether your ads are driving sales, bringing in qualified traffic, and delivering a strong return on ad spend.

In this guide, we’ll break down the top KPIs to track for eCommerce PPC campaigns so you can evaluate what’s working, identify what’s not, and make data-driven decisions to grow your online sales.

1. Return on Ad Spend (ROAS)

ROAS measures how much revenue you earn for every dollar spent on ads. It’s one of the most important KPIs for any eCommerce PPC campaign.

Formula:

ROAS = (Revenue from Ads) / (Cost of Ads)

Why it matters:

A high ROAS means your campaigns are profitable. If your ROAS is low, you’re likely overspending or attracting the wrong audience.

What to aim for:

A good ROAS benchmark for eCommerce is typically 3:1 or higher, depending on your margins.

2. Conversion Rate (CVR)

The conversion rate tracks the percentage of visitors who take a desired action after clicking on your ad—typically making a purchase.

Formula:

CVR = (Number of Conversions) / (Number of Clicks) × 100

Why it matters:

A high conversion rate indicates that your landing pages are effective and that you’re targeting the right audience with your ads.

What to aim for:

For eCommerce PPC, a strong conversion rate is generally 2 to 5 percent or higher.

3. Cost per Acquisition (CPA)

CPA tells you how much it costs to acquire one paying customer through your PPC campaign.

Formula:

CPA = (Total Cost) / (Total Conversions)

Why it matters:

Monitoring CPA ensures that your ad spend is aligned with your profit margins. If your CPA is too high, you’re losing money with every sale.

What to aim for:

Try to keep your CPA below your average order value and ideally within 30 to 50 percent of the customer's lifetime value.

4. Click-Through Rate (CTR)

CTR shows how often users who see your ad actually click on it.

Formula:

CTR = (Clicks) / (Impressions) × 100

Why it matters:

A higher CTR usually indicates that your ad copy, visuals, and targeting are relevant to your audience.

What to aim for:

A good CTR for eCommerce PPC campaigns is 2 percent or more, depending on the ad network.

5. Average Order Value (AOV)

AOV measures the average amount spent per order placed through your PPC ad.

Formula:

AOV = (Total Revenue) / (Number of Orders)

Why it matters:

Tracking AOV helps you understand the buying behavior of your PPC-driven customers. Increasing your AOV can significantly boost your ROAS.

What to aim for:

Look for ways to increase AOV through upsells, bundles, or volume discounts.

6. Quality Score (Google Ads)

Quality Score is a metric used by Google Ads to measure the relevance and quality of your ads, keywords, and landing pages.

Why it matters:

Higher-quality scores result in lower(Cost Per Clic (CPCk) and improved ad placements.

How to improve it:

• Write relevant ad copy
• Use targeted keywords
• Create fast-loading, mobile-optimized landing pages
  
  

What to aim for:

A Quality Score of 7 or higher is considered good.

7. Impression Share

Impression share shows the percentage of times your ads appeared compared to the total number of times they were eligible to appear.

Why it matters:

It helps you understand how competitive your ads are in the auction and if you're losing visibility to competitors.

What to aim for:

A higher impression share means you’re dominating your niche. Aim for 70 percent or more if you're running branded or high-priority campaigns.

8. Bounce Rate

Bounce rate measures the percentage of users who click your ad but leave the landing page without taking any action.

Why it matters:

A high bounce rate could indicate that your landing page doesn't match the user’s intent or that it's slow, confusing, or not mobile-friendly.

What to aim for:

Try to keep bounce rates below 40-50% for eCommerce PPC traffic.

9. Lifetime Value of a Customer (LTV)

LTV measures the value a customer brings to your brand throughout their relationship.

Why it matters:

If your LTV is high, you can afford to spend more on customer acquisition, even if your initial ROAS is lower.

How to use it:

Compare LTV with CPA to ensure long-term profitability. This is especially important for subscription or repeat-purchase eCommerce businesses.

10. Cost per Click (CPC)

CPC tracks how much you pay for each click on your ad.

Why it matters:

Keeping your CPC low without sacrificing quality is key to maximizing your ad budget.

What to aim for:

Monitor CPC trends over time and test different keywords and ad creatives to maintain efficiency.

Final Thoughts

Tracking the right eCommerce PPC KPIs is essential for optimizing your ad campaigns and maximizing ROI. Instead of focusing only on clicks or impressions, keep an eye on conversion metrics, customer value, and profitability.

When you monitor these KPIs consistently, you can make smarter decisions, adjust campaigns quickly, and scale your eCommerce business with confidence.

Whether you're managing ads in-house or working with an eCommerce marketing agency, these key metrics should be at the core of your performance strategy.