Google AdWords Terminology

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Basic Terminolgy

  1. Keyword - The keywords you choose are used to target your ads to potential customers. Keywords are the terms or phrases you want to 'trigger' your ad to appear. For example, if you deliver fresh flowers, you can use 'fresh flower delivery' as a keyword in your AdWords campaign. When a Google user enters 'fresh flower delivery' in a Google search, your ad could appear next to the search results.
  2. Placement - Like keywords, placements are another way for you to control where your ads appear. A placement is usually a website where you'd like your ad to appear. For example, if you select www.example.com/sports as a placement, your ad could appear on that site.
  3. Campaign & Ad Group - AdWords accounts are organized into campaigns and ad groups. You start with one campaign,a section of your account dedicated to your ad campaign. You can have multiple campaigns running and might choose to create one campaign for each product or service you want to advertise. Within each campaign, you have one or more ad groups, sets of related ads, keywords, and placements.
  4. Impression (Impr.) - The number of impressions is the number of times an ad is displayed on Google or the Google Network. Monitor your impressions to see how many people your ad is shown to.
  5. Click - If a customer sees your ad and clicks on it to learn more or to do business with you, it is recorded in your account as a click. Monitor your clicks to see how many people choose to enter your website from your ad.
  6. Cost-per-click (CPC) - You 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. Your CPC bid also helps determine how often your ad can appear and its ranking on the page.
  7. Cost-per-thousand impressions (CPM) - With some campaigns, you can choose to pay for views of your ad rather than clicks. The maximum CPM is the most you're willing to pay for each thousand impressions, or views of your ad. CPM bidding is only available for campaigns that don't target Google search or search partner sites.
  8. 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.