Google AdWords Glossary
Google AdWords Account: you need to establish an AdWords account before you begin. Within this, you set up the account’s e-mail address and password, billing information, payment method, currency, and time zone. Once you set up the last three, Google does not allow you to go back and change them later.
Ad Rotation: It’s always good practice to run two ads simultaneously within each ad groups. This allows you to test different headlines, body copy, and so on to see which performs better. In that case, in campaign settings select “ad rotation” rather “ad optimization”.
Ad Scheduling: selecting the times and days in which you want your ads to be shown.
Average Position: The average positions of your ad in relation to your keywords overall and to each keyword individually. If your AP is greater than 11, then you’re rarely if ever making page one. If it’s around nine, you’re only sometimes making page one.
Campaigns and Ad Groups: the nub of your Ad Words account. Campaigns are usually general, while Ad Groups (which fall under campaigns) are specific. For instance, your campaign might be about office supplies. Within that campaign, you might run different ad groups for, say, paper, filing cabinets, easels, and so on.
Campaign Settings: You must decide on a number of options before you can activate your account. These include campaign name, locations, language, networks, devices, bidding options, ad scheduling, and ad rotation.
Conversions: These are pre-determined actions taken by your visitors. Conversions can include a number of actions: page views; sign-ups; catalogue requests; voucher downloads; lead generation; enquiries; white papers; e-commerce sales.
Conversion Rate: The percentage of conversions you’ve received from your clicks. To calculate it, you divide the number of clicks by the number of conversions.
Conversion Rate (many per click): This measures the second and subsequent conversions from the same IP address that comes within a 30-day period following an initial click on one of your ads. For instance, on the first click (see below), a visitor may buy a product from your site. With many per click, it usually means that they have returned within 30 days and made a further purchase(s).
Conversion Rate (one per click): This measures the first conversion that comes within a 30-day period following a click on one of your ads.
Conversion Tracking: This is code you derive from within Ad Words and then insert into your website. This code is used to track your conversions.
Cost per acquisition (CPA): The amount each conversion has cost. Google calculates this by dividing the spend amount by the number of conversions over a period selected by you.
Cost per click (CPC): This has two functions. First, it refers to the amount you want to bid for each click, on average across your whole keyword list and, if you wish, you can make separate bids for different keywords. Second, it shows subsequently the amount you have actually paid for each click, overall and by individual keyword.
Cost per 1000 impressions (CPM): Here, you pay not for clicks, but each time your ad appears on the page. This option is available only on the Google Content Network.
Click through rate (CTR): This tells you how well your ads and keywords are performing. CTR is calculated by dividing the number of impressions by the number of clicks, creating a percentage. In AdWords, for Quality Score purposes, the CTR that matters is that achieved on Google itself; your CTR on the search partners and the content network is ignored. Google regards a CTR below 1% as poor, 1-2% as OK, and over 2% as good.
Daily Budget: The maximum amount you are prepared to spend in any day (Google averages this over a period). You set this at campaign level.
Google Analytics: A separate tracking tool that your web developer should install for you. It provides valuable statistics on your site operation as a whole. Linking it to AdWords is extremely useful, as it will provide with additional data on your PPC activities.
Impressions: These occur each time your ad appears on a viewed page following a search using one of your keywords. If your ad appears, say, on page 2 and the visitor does not open page 2, the impression is not counted on your score – because your ad was not viewed.
Landing Page: The page that your visitors are taken to when they click on your advert.
Optimisation: Making your campaign as effective as possible by improving aspects of it. You can optimize the likes of keywords, bids, ads, and Landing Pages.
Networks: Google gives you a choice of networks where they will show your ads. The three networks are Google search only, Google search partners, and the content network. The default has all networks switched on. Since each of these can perform differently, you should choose the network(s) that you feel is right for you.
Position Preference: Telling Google that you only want your ads to appear when they will be in a specific position, e.g., #3 or within a range of positions, e.g. 1-3.
PPC: Pay per click advertising. You pay only if someone clicks on your advert when it appears on the search pages. Google brands this as “Google AdWords”.
Quality Score: exclusive to Google AdWords. Google scores your campaign from 0-10. The key to total success (10/10) is relevance. Google considers a number of issues. However, the major factor is the relationship between your keywords, adverts, and landing page. As the campaign progresses, they can revise your score according to how good your CTR is for your keywords and ads, and how high your bids are, because this can affect your CTR. Getting a high QS is essential, because it means that Google considers your campaign highly relevant so they will give you higher page positions and charge you lower CPC’s.
Reports: Google provides you with a range of reports that you can run at any time. Visit the "Reports" tab on your account.
ROI: Return on investment. This can also be called Return on Ad Spend (ROAS). You calculate this using the formula:
Revenue from Sales minus Advertising Costs x100
Divided by Advertising Costs
Let’s say that your sales revenue is £100 and your AdWords advertising spend to achieve that is £40. The formula would look like (100 - 40 / 40) x 100. Thus, the ROI would be 150% - you are making 150% of your ad spend. But let’s say that your sales revenue is £40 and your ad spend is also £40, your ROI would be 0% (you’d be breaking even). On the other hand, if your revenue is £30 and your advertising spend is £40, your ROI is minus 25% (you’re making a loss). So, your aim is to get an Ad Words ROI of 0% or greater.
SERPS: Search engine results pages.
Sponsored Links: Google AdWords pay per click adverts.
Website Optimiser: A special tool - not just for Google AdWords - that allows you to split test and experiment with a number of variations on your landing pages. This is complicated and you may need professional assistance.
