Google AdWords: A Pay per Click (PPC) program of advertising on Google. The ads appear on the right hand side of the Google Search page on keywords / key phrases that you choose.
Google AdWords is a quick and simple way to advertise on Google and its ad partners, regardless of your budget. AdWords ads are displayed along with search results on Google, as well as on search and content sites in the growing Google Network, which includes websites like AOL, EarthLink, HowStuffWorks, & Blogger. With searches on Google and page views on the Google Network each day, your Google AdWords ads reach a vast audience.
Keyword: The keywords you create for a given ad group are used to target your ads to potential customers. For example, if you deliver Valentine gifts, you can use ‘valentine gift delivery’ as a keyword in your AdWords campaign. When a Google user enters valentine gift delivery’ in a Google search, your ad could appear next to the search results. In addition, your ad can appear on sites in the Google Network that relate to your keyword.
Placements: A placement is any selected website, or subset of pages or ad units on a site, where you’d like to see your ad appear. You can add placements to any ad group, where they can work alone or with your keywords to determine where your ads can appear.
Campaign: Campaigns you create within your AdWords account are used to give structure to the products or services you want to advertise. Within each campaign, you can create one or more ad groups. While a campaign may represent a broad product class, the ad groups within that campaign can be more focused on the specific product you want to advertise.
Impression (Impr.): The number of impressions is the number of times an ad is displayed on Google or the Google Network.
Keyword Matching Options: There are four types of keyword matching: broad matching, exact matching, phrase matching, and negative keywords. These options help you refine your ad targeting on Google search pages.
Cost-per-click (CPC): With AdWords you can choose the maximum amount you’re willing to pay each time a user clicks on your ad. This is called your maximum cost-per-click (or max CPC) bid. The AdWords Discounter automatically reduces your costs on a case-by-case basis so that you’re only charged the minimum necessary to keep your position on the page. By setting a higher CPC bid, you can help your ad show in a higher position on the page.
Cost-per-thousand impressions (CPM): With some campaigns, you may also choose the maximum amount you are willing to pay for each thousand impressions, or views of your ad. This amount is called the maximum CPM. (CPM bidding is available for campaigns that don’t target Google search or search partner sites.) As with maximum CPC, our AdWords Discounter reduces this amount, so you won’t always have to pay the amount you set as your maximum CPM. A placement-targeted campaign can use either CPM or CPC bidding, but not both.
Ad ranking/Positioning: The position of a keyword-targeted ad on search ad units is based on its ad rank, which is determined by your bid for that keyword or ad group multiplied by the matched keyword’s Quality Score. To be promoted to a top position above Google search results, your ad must exceed a certain quality threshold, which helps ensure that only the highest quality ads appear in top spots.
Actual cost-per-click (CPC): This is the amount you’ll actually pay for a click on your ad. The AdWords Discounter automatically gives you the lowest possible price in order for you to maintain your ad’s position. Your actual CPC will be equal to or less than the CPC bid you specify for your ad group, keyword or placement.
Here’s an example: if your ad receives two clicks, one costing $0.20 and one costing $0.40, your average CPC for those clicks is $0.30.
Average Position (Avg. Pos.): The average position in which your ad may be displayed (as seen within your account reporting data, not traffic estimates). ‘1′ is the highest position on the first page of search results, but there is no ‘bottom’ position. Ads with an average position of 1-8 generally appear on the first page of search results, 9-16 on the second page, etc.
An average position of ‘1.7′ means your ad usually appears in positions 1 or 2, and it may appear more often in higher positions than an ad with an estimated average position of ‘1.8.’ Values may contain decimals because the Traffic Estimator displays estimates as averages-not whole numbers-based on dynamic keyword activity among advertisers. Also, average ad positions are not fixed; they may vary depending on various performance factors.
Click: A click (sometimes called a clickthrough) occurs when a user sees your ad and clicks on the title of your ad, leading them to your website.
Clickthrough Rate (CTR): Clickthrough rate (CTR) is the number of clicks your ad receives divided by the number of times your ad is shown (impressions) via Google search only. Your ad and keyword each have their own CTRs, unique to your own campaign performance.
A keyword’s CTR is a strong indicator of its relevance to the user and the overall success of the keyword. For example, a well targeted keyword that shows a similarly targeted ad is more likely to have a higher CTR than a general keyword with non-specific ad text. The more your keywords and ads relate to each other and to your business, the more likely a user is to click on your ad after searching on your keyword phrase.
Contextual Advertising: Google leverages award-winning search technology to deliver relevant AdWords ads to content pages of sites and products in the Google Network. Google technology draws upon its understanding of the billions of pages in it’s search index and it’s ability to crawl web pages to figure out which keywords would lead a user to the page. Then, Google match ads to the page based on those keywords.
Conversion: When a user completes an action on your site, such as buying something or requesting more information.
Conversion Rate: Your conversion rate is the number of conversions divided by the number of ad clicks. Conversions are only counted on Google and some of Google Network partners. Using Website Optimizer, you’ll be trying to increase your conversion rate and therefore improve your return on investment.
Cost / Conversion: The total cost divided by the total number of conversions. This statistic gives you the amount spent per conversion. Conversions are counted only on Google and some of our Google Network partners. The cost-per-conversion is adjusted to reflect only the cost of ad clicks on which we can track conversions.
Cost-per-thousand Impressions (CPM): This stands for cost-per-thousand impressions. A CPM pricing model means advertisers pay for impressions received.
Daily Budget: Your daily budget is the amount that you’re willing to spend on a specific AdWords campaign each day.
AdWords displays your ads as often as possible while staying within your daily budget. When the budget limit is reached, your ads will typically stop showing for that day. How quickly your ads are shown during a given day is determined by your ad delivery setting.
Destination URL: The destination URL is the exact URL within your website that you want to send users to from your ad.
Display URL: This is the URL displayed on your ad to identify your site to users.
Google Content Network: The Google Network is a large group of websites and other products, such as email programs and blogs, who have partnered with Google to display AdWords ads. Advertisers have the option of running their ads on Google as well as the Google Network for no extra cost.
AdWords ads are placed based either on searches or content, so the Google Network has two components:
the search network and the content network.
Invalid Clicks: Clicks that Google does not charge to your account because Google determine they were generated by prohibited methods. Examples of invalid clicks may include repeated manual clicking or the use of robots, automated clicking tools, or other deceptive software.
Keyword Insertion: Keyword insertion is an advanced feature used to dynamically update your ad text with your chosen keywords. You insert a special modification tag into your ad text to enable this feature for your ads.
Depending on a user’s searched keyword, AdWords automatically places your triggered ad group keyword or a broad match variation into the ad text. This makes your ad more relevant and useful for users while making it easier for you to create multiple unique ads for a large amount of account keywords.
Landing Page: An active webpage where customers will ‘land’ when they click your ad. The web address for this page is often called a ‘destination URL’ or ‘clickthrough URL.’
Pay-per-click (PPC): The pricing structure used by some online channels to charge an advertiser each time a user clicks on the advertiser’s ad. The amount is usually set by the advertiser, not by the channel. Also called cost-per-click (CPC).
Return on Investment (ROI): Return on investment (known as ROI) is the ratio of the cost of advertising relative to the profit generated from conversions such as sales or leads. Your ROI indicates the value to your business gained in return for the cost of your ad campaign.Watch the ‘Intro to ROI’ video to learn about ROI and why it’s important to your AdWords account.
Although exact measurement is nearly impossible, you can help assess the ROI of your campaign by using these calculations: take your revenue from sales, subtract your advertising costs, then divide by your total advertising costs. (Revenue – Cost) / Cost
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