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How to read an ad report without being fooled

Which numbers mean something, which are there to look impressive, and the questions that tell them apart.

Nyah Eliud Paid ads 6 min read
A business owner highlighting lines on a printed advertising report

Impressions are not an achievement

A report that opens with a huge impressions figure is leading with its best-looking number, not its most useful one. Impressions count how many times your advert was shown, including to people who never noticed it.

Impressions can be bought cheaply and in enormous quantity. On their own they tell you almost nothing about whether the money worked.

Clicks are a cost, not a result

Clicks are better, because somebody chose to act. But a click is the thing you paid for, not the thing you wanted. Reporting clicks as the result is like a shop counting people who walked through the door and calling it revenue.

Click-through rate is genuinely useful, but as a clue. It tells you whether the advert appeals to the people seeing it. It says nothing about what happened next.

The three numbers that actually matter

  • Conversions. How many people did the thing you wanted: enquiry, call, message, purchase.
  • Cost per conversion. Total spend divided by that number. This is the figure to watch month to month.
  • What a customer is worth to you. Not in the report at all, but without it the other two mean nothing.

If a report doesn’t contain the first two, it isn’t a performance report. It’s an activity report, and activity isn’t what you’re buying.

The comparison that mattersCost per conversion against what a customer is worth. Everything else is context.

Beware of conversions that are not conversions

Conversion tracking can be set up to count almost anything, including things that cost you nothing and prove nothing. A page view. Thirty seconds on the site. A scroll. A click on the menu.

Ask what exact action is being counted. If the answer is vague, or the conversion count looks far higher than the enquiries you actually received, push on it politely but firmly.

Watch for double counting too. One person who submits a form and then calls can show up as two conversions, which makes your cost per lead look half what it is.

Averages hide the thing you need to see

A campaign with an acceptable average cost per lead often hides one keyword producing cheap leads and several producing none at all. The average covers up both.

Ask for the breakdown by campaign, and by search term rather than keyword. That’s where the decisions are: what to stop, and what to put more money behind.

The numbers, from flattering to useful

Reading an ad report
NumberWhat it measuresHow much it tells you
Impressions and reachHow often the ad was shownVery little on its own
Clicks and click-through rateHow many people were interestedWhether the ad works, not the campaign
Cost per clickWhat each visit costA cost, not a result
ConversionsEnquiries, calls, sales counted by trackingThe point, if the tracking is honest
Cost per conversionSpend divided by conversionsThe number to compare with what a customer is worth
Revenue or customersWhat actually came of itThe only final answer

A good report reads from the bottom of this table upwards. A report that only reaches the third row has not told you whether the money worked.

Five questions to ask whoever sends the report

  • What exactly counts as a conversion here?
  • What did each enquiry cost us this month, and what did it cost last month?
  • Which campaign or search term produced the most, and which produced none?
  • What did you change since the last report, and what did it do?
  • What would you stop doing if this were your own money?

The last one tells you the most. Anyone really managing an account has a view on what isn’t working, and a report that never contains bad news isn’t a report.

Questions people ask

Return on ad spend: the revenue that came from ads divided by what the ads cost. It is only meaningful when sales are tracked accurately, which is rare for businesses that close sales on WhatsApp or by phone.

They count differently: different attribution rules, time windows and definitions of a conversion. Pick one source for decisions and use it consistently.

Spend, conversions and cost per conversion, which campaigns and searches produced them, what was changed last month, and what will change next. Our reports lead with spend, leads and cost per lead.

Where this comes from

The primary sources behind the claims above. All of them are worth reading in full if you want the detail we summarised.

The short version

Which numbers mean something, which are there to look impressive, and the questions that tell them apart.

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Nyah Eliud
Nyah Eliud Founder & Chief Strategist, Digital Krypton

Building websites and running search for Cameroonian businesses since 2013. Every guide is written from the work we do for paying clients, reviewed by a person, and updated when the answer changes. If a guide raises a question it doesn’t answer, ask and we’ll answer it properly.

How we work Nyah on LinkedIn

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