If your PPC performance reports still start with vanity metrics like click-through rate and impressions, you’re only seeing the surface of performance.

Executives are not impressed by screenshots of green arrows. They want to know if paid media is adding profit, building pipeline value, and supporting long-term growth.

That is a much higher bar than “our CTR went up this month!”

At the same time, running PPC campaigns has become more complicated, even with the help of AI.

Privacy rules limit what we can track. AI is now shaping everything from the auctions to the creatives used in your ads. All the while, users bounce between devices, different channels, and intent states before they even think about converting.

In that type of environment, old comfort metrics lose their value quickly. A good CPC or a strong CTR might look nice in a deck, but it tells you very little about the business impact.

This guide focuses on the PPC key performance indicators that should matter the most. Profit, incrementality, lifetime value, and contribution to revenue give you a clearer picture of whether your campaigns are worth the investment.

The goal is simple: help you report on PPC in a way that earns trust throughout the leadership team, protects your marketing budget, and reflects the real value you create.

1. Profit (Not Just ROAS)

Return on ad spend (ROAS) has long been the default north star in PPC reporting, but frankly, it’s overdue for a demotion.

On its own, ROAS offers a dangerously incomplete picture. It tells you how much revenue was generated for every dollar spent – but revenue isn’t profit.

A campaign might boast a stellar 600% ROAS, but if fulfillment costs, discounts, or shipping fees gobble up 70% of that revenue, what are you really left with?

On the other hand, a modest-looking 300% ROAS campaign could quietly be generating double the profit if it’s driving high-margin sales.

Today’s best-in-class PPC teams know this and build profit measurement directly into their strategy.

They’re calculating contribution margins at the product level and adjusting revenue numbers accordingly before feeding that data back into Google Ads or Microsoft Ads.

This lets algorithms optimize toward profit – not just revenue – giving teams a competitive edge over advertisers still stuck reporting on inflated ROAS figures.

When you can walk into a CMO’s office and confidently show not just “here’s what we sold,” but “here’s what we made,” you earn a different kind of respect.

2. Incrementality (The “Would You Have Gotten This Anyway?” Metric)

This is the KPI that separates marketers who report from those who understand.

Incrementality forces you to ask: Did this sale happen because of PPC, or would it have happened anyway?

In the old days, you might have taken every conversion at face value, especially if it showed up as the last click.

Today, with attribution becoming less precise and users bouncing between channels, platforms, and devices, you can’t afford to make that assumption.

Incrementality gets to the heart of what you’re actually contributing to the business. It’s about quantifying the lift your campaigns generate beyond what would have happened without paid media.

Whether through holdout tests, geo-based experiments, or platform-led lift studies, advertisers investing in incrementality measurement consistently find out that some campaigns – often brand and remarketing – are less impactful than they seem.

Sure, measuring incrementality is messy. It doesn’t fit neatly into Google’s default reporting.

However, CMOs don’t want to see PPC taking credit for revenue that would’ve closed regardless. They want to know what’s working because of paid media, not just what’s being tagged by it.

Advertisers who commit to measuring incrementality make better budgeting decisions and protect themselves from over-investing in campaigns that are just skimming the top.

3. Customer Lifetime Value (CLV Or LTV)

There’s no excuse for ignoring Lifetime Value (LTV) today.

Rising acquisition costs and shorter attribution windows have made short-term metrics like first-purchase cost-per-acquisition (CPA) less useful. The most valuable PPC programs today optimize for the long game.

Customer Lifetime Value is about understanding the total value a customer brings to the business, not just their first purchase.

For SaaS, subscription commerce, and many DTC businesses, the initial conversion is merely the opening act. If you’re optimizing toward cheap CPAs but acquiring low-value, one-and-done customers, you’re actively hurting long-term profitability.

Advanced teams are feeding LTV data directly into Google Ads through offline conversion imports, enabling smart bidding strategies to optimize for customers likely to return and spend again.

Others are building LTV models internally and using them to guide targeting, creative, and bidding strategies manually.

This shift is more than tactical – it’s strategic. Businesses optimizing for LTV don’t just get more customers; they get better customers. Customers who stay, spend more, and fuel real growth.

4. Cost Per Incremental Acquisition (CPIA)

While CPA still has its place, the real game is CPIA – Cost Per Incremental Acquisition.

CPIA zooms out and asks: What did it cost to acquire net-new, incremental customers – the ones who wouldn’t have converted without this campaign?

This is a much harder question than simply “What did we pay per conversion?”, but it’s the one that matters.

Many PPC accounts are bloated with campaigns that deliver conversions but offer little in the way of incremental lift.

Branded search, retargeting, and display remarketing can often cannibalize organic or direct traffic.

By layering incrementality testing into your cost analysis, you gain a KPI that tells you not just what you paid for a lead or sale, but what you paid for an actual new customer.

It’s where the conversation shifts from “Are we hitting target CPA?” to “Are we paying reasonable amounts for meaningful growth?”

CPIA is where the best PPC teams earn their seat at the strategy table.

5. Conversion Rate (Context Is Everything)

Conversion rate is still important, but not in the way most PPC reports treat it.

Too many teams obsess over maximizing conversion rates without stopping to ask: Conversion rate for whom? Under what circumstances?

A cold prospect clicking a YouTube ad will never convert at the same rate as someone clicking a branded search ad.

And yet, conversion rates are often presented in flat averages that tell you very little about what’s really happening.

The best PPC practitioners contextualize conversion rates:

• By audience type (new vs. returning).
• By funnel stage.
• By device, geography, or time of day.

If your conversion rate drops because you’ve launched an upper-funnel prospecting campaign, it may actually be a sign that you’re reaching new audiences who haven’t been exposed to your brand before, which is a good thing.

Contextualizing conversion rates lets you tell the real story behind your data and prevents knee-jerk optimizations that hurt long-term growth.

6. Lead Quality (For Lead Gen Campaigns)

Lead generation marketers have been plagued for years by one mistake: optimizing for volume, not quality.

It’s easy to pat yourself on the back for delivering leads under the target cost-per-lead (CPL). It’s harder to admit that half of those leads will never close – or worse, never even speak to sales.

True PPC leaders know that leads are just the starting point. What matters is how many of those leads become qualified opportunities and eventually customers.

This means integrating customer relationship management (CRM) data into your PPC strategy and measuring down-funnel impact.

Savvy advertisers have ditched CPL as the sole north star and now track:

• Marketing qualified lead (MQL) to sales qualified lead (SQL) conversion rates.
• Pipeline contribution.
• Closed-won revenue sourced from PPC.

By feeding this data back into ad platforms, either through offline conversion imports or CRM integrations, PPC teams can train algorithms to find leads that not only fill out forms but actually generate revenue.

7. Time To Conversion

This KPI is criminally underutilized. In an age of increasingly complex buying journeys, knowing how long it takes a user to convert after clicking an ad is vital.

For many B2B or considered-purchase brands, conversions don’t happen within Google Ads’ default 7-day or 30-day attribution windows.

Some leads need 45, 60, even 90+ days to convert. Ignoring this means underreporting performance and undervaluing campaigns.

Understanding time to conversion helps you:

• Build realistic retargeting windows.
• Set proper expectations with stakeholders.
• Avoid shutting down high-performing campaigns too soon.

Especially with cookie windows shrinking and attribution getting tougher, knowing your actual conversion lag helps you defend your budget with confidence.

8. Contribution To Pipeline Or Revenue

At the end of the day, this is the KPI that makes or breaks your PPC program. If you can’t tie your campaigns to pipeline or revenue, you’re just spending money and hoping it works.

The best PPC leaders don’t show CTRs and CPCs to the C-Suite. They show:

• How much qualified pipeline PPC is generated.
• What portion of closed revenue can be attributed to paid media.

Whether through CRM integration, manual reconciliation, or marketing automation platforms, you need to bridge the gap between ad clicks and actual business outcomes.

PPC lives and dies by its ability to drive revenue. Every other metric in this article ultimately feeds into this one.

Bonus: Campaign Health Metrics (CTR, CPC, CPM, And Friends)

Before we throw CTR, CPC, and cost-per-mille (CPM) into the vanity metric graveyard, let’s be clear: These metrics still matter, just not the way most people think. They are health metrics, not performance KPIs.

A strong CTR could signal relevant ad copy and healthy engagement. A reasonable CPC might indicate competitive efficiency. CPM can help diagnose shifts in inventory or competition.

However, these numbers are inputs, not outcomes. They provide valuable diagnostics that help you fine-tune campaigns, but they don’t answer the big question: Are you driving profitable, incremental, revenue-generating outcomes?

Good PPC teams know how to use these health metrics to identify friction points or optimization opportunities. Great teams know not to use them as the headline in the quarterly business review (QBR).

Aligning PPC Metrics With Real Growth

Modern PPC performance and KPI measurement start with better questions, not more dashboards.

Before you add a new KPI, revisit the basics with your team or your client.

• What does a high-value customer look like?
• How long do they usually take to convert?
• Which products or services deliver the strongest margins?

If you don’t have clear answers, every report you build may feel a little shaky.

From there, pick one or two shifts instead of trying to rebuild everything at once. You might start by layering profit into your reporting instead of relying on last-click ROAS alone. Or, you might connect your CRM so you can see which campaigns create qualified pipeline instead of just raw leads.

As that foundation improves, the conversation with stakeholders starts to change. You spend less time defending fluctuations in CPC and more time showing how paid media supports sales goals, revenue targets, and retention plans. That is where these KPIs really earn their keep.

The reality is that PPC will only get noisier. Automation capabilities will continue to expand, signals will change, and user journeys will stay as messy as ever.

Teams that cling to surface-level metrics will likely struggle to prove their value. Teams that anchor their reporting into profit, incrementality, lifetime value, and revenue contribution will have a much easier time securing budget and trust.

If your current reports do not reflect how the business actually makes money, this is your signal to recalibrate. Start small, adjust as you learn, and make sure every metric you share helps answer the biggest question that matters: is PPC driving meaningful growth, or is it just generating noisy activity?

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