PPC Glossary - Common Terms Explained

Ad group - An ad group contains one or more ads which target a set of keywords. You set a bid to be used when your ad is triggered by the keywords in the ad group. This is called a cost per click (CPC) bid. You can also set prices for individual keywords within the ad group.

 

Average Position - This refers to the average position on a search result page that an ad appears in when it's triggered by that keyword.

 

Campaign - These contain your ad groups and give structure to the products and services you wish to advertise to your customers. Ads in the campaign share the same campaign budget.

 

Clicks - When a potential customer clicks on your advert in Google search results leading them to your website (also associated with CTR – Click Through Rate).

 

CPC (Cost-per-Click) - This is the highest amount that you are willing to pay for a click on your ad. You can set a maximum CPC at the keyword or ad group level. This is not always the amount you pay, the average cost-per-click is a better indication of how much you are being charged.

 

CTR (Click through Rate) - This is the number of clicks your ad receives divided by the number of times your ad is shown (impressions). A keyword's CTR is a strong indicator of its relevance to the user and the overall success of the keyword.

 

Daily Budget - Your daily budget is the amount that you're willing to spend on a specific AdWords campaign each day. The daily budget is never exceeded over the period of a month.

 

Google AdWords - Google’s advertising program based on pay –per click pricing.

 

Impressions - This is the

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number of times your advert is shown to potential new customers in Google search results.

 

Keyword - These are the words that are selected to target your potential customers. Keyword matching options can be used to further target customers.

 

Landing Page - This where a customer is brought to on your website when they click on your ad.

 

Optimization - This is the process of working on and modifying your ad campaigns to improve the quality and performance of your campaigns.

 

Quality Score - This is a measure of how relevant your ad, keyword, or web page is. Quality Scores help ensure that only the most relevant ads appear to users on.

 

 

>> See our PPC FAQs page for common PPC questions