Adwords Glossary of Terms for
Small Business Owners
If you operate a small business, it is becoming as important to focus on building a solid online presence as it is to have smooth in-store operations.
The line between what happens online and in the physical world is becoming more blurred by the day.
It can be challenging to understand the language thrown around when it comes to Google AdWords and Pay-Per-Click (PPC) advertising.
Here is an A-Z glossary to help get better acquainted with some of the basics of this powerful online marketing strategy:
Actual Cost Per Click (CPC) – This is how much you are charged each time someone clicks on your ad.
Ad Extensions – These are additional pieces of information you can add to your ads, such as your phone number, website link, and more. They are meant to entice viewers to take action on your ad.
Ad Group – This is a group of one or more ads along with targeted keywords, budgets, and more – all within the same campaign.
Ad Position – This is where your ad shows up in the list of ad results on the search results pages.
Ad Rank – This is a value placed on your ad based on your Bid Amount, Quality Score, and Ad Extensions. This determines your ad position (where it will show up on a page).
Ad Scheduling – This feature allows you to set specific days – and hours of the day – when your ad will show up; which is great for businesses who have days and times that their target audience is more likely to be searching for them.
Automatic Offer Extensions – This extension will automatically show a link with an “ad deal” below your ad.
Average Cost Per Click – This is the average amount you pay each time an ad is clicked.
Billing Threshold – This is the level at which you specify for Google to charge you for ad costs. Once you reach that limit, you will be billed.
Broad Match – This is the default setting for searches that include a specific keyword and variations of that keyword. It is not the best option to pull in closely targeted leads.
Budget – This is the highest amount you are willing to spend on average each day within a month on a single campaign.
Call Extensions – This is an extension displays your phone number with your ad when viewed on a desktop and allows you to include a clickable “Call” button with your ads on mobile devices.
Call-To-Action (CTA) – This is the exact action you want searchers to take when seeing your ad, whether it’s to call you, visit your website, etc.
Campaign – This consists of one or more ad groups that contain a set of ads and keywords. It represents a broad spectrum of your products and services and helps you organize them, whereas an ad group is focused on one particular product or service.
Campaign Type – This is where you determine where you want your ads to be seen (Search Network, Display Network, or Search Network with Display Select, which is both).
Click-through Rate (CTR) – This lets you know how well your ad is performing. It is the number of clicks your ad receives divided by the number of time it has been displayed (impressions) within a given time frame.
Conversion Rate – Once someone clicks on your ad, this is the rate at which they are taking your desired action, such as calling you, signing up for your email list, filling out a contact form, and more.
Daily Budget – This is the maximum amount you want to spend in any given day for a single campaign.
Destination URL – This is the URL of the web page your ad viewers will be directed to after clicking an ad.
Enhanced CPC – This is a bidding feature that will increase or lower your bids based on how likely it is that an ad will convert.
Exact Match – This is a keyword option that allows you to reach a more targeted audience via keyword selection. Putting your keywords into brackets will allow you to only target those exact or close variations of those phrases.
Frequency – This is the minimum number of times your ad was seen by one particular visitor in any given time frame.
Frequency Capping – This is limiting the number of times your ad is seen by any one particular visitor within a particular time frame – can be by day, week, or month.
Google Forwarding Phone Number – This is a unique number provided by Google to feature in your ads to help you track and measure how many calls you receive from your ads.
Google Display Network – These are sites that partner with Google, such as YouTube.
Google Search Network – These are sites that display Google search results.
Headline – This is the header of your ad copy that usually shows up in blue when your ad is shown. It is important that you craft it so that it really grabs the attention of your target audience.
Image Ads – These are ads that use an image or graphic and can only appear on sites in the Google Display network.
Impressions – This is the number of times your ad is shown.
Interaction Rate – This is the time viewers spend interactive with a display ad. This would be the number of time people interacted with your ads / number of impressions.
Invalid Clicks – These are ad clicks that are considered illegitimate, such as unintentional clicks or clicks resulting from automation tools/malicious software.
Keyword – This is a word, term, or phrase that you want to trigger your ad to show. In other words, think about your target audience and what they would type into the search engines to find your type of product or service – these should be your keywords so they show up while users are searching for these phrases.
Keyword Matching Options – A setting that helps you control how closely your keyword must match the term in order for your ad to show up.
Keyword Planner – This is a free Google tool that provides a wide-variety of keyword ideas, phrases, and terms, as well as traffic estimates based on them.
Landing Page – This is the web page searchers will land on as a result of clicking your ad. For the best results, your landing page should be targeted and specific to the ad.
Location Extensions – This extension allows you to include your business address and phone number along with your ad. This helps viewers call you or locate you immediately – which means, they don’t even have to click on your ad. This, in turn, saves you money on clicks.
Mobile Ads – These are the ads that mobile searchers will see on their devices. AdWords has a WAP mobile ads feature created specifically for mobile devices.
Negative Match – This matching feature allows you to prevent ads from showing for specific keywords or phrases simply by adding a minus sign (-) in front of them.
Optimization – This is a process in which you change different elements of your ads to improve their performance, including ad copy, keyword match types, targeting options, and more.
Pay-Per-Click (PPC) – This is another name for “Cost Per Click,” meaning it’s the amount you pay each time someone clicks on your ad.
Phrase Match – This matching feature allows you to drill down into your targeted audience simply by surrounding your keyword or phrase with quotation marks.
Quality Score – This is a calculated value that is generated by Google every time your ads are triggered in a search. It indicates how relevant your ad headlines, keywords, and landing pages are to users. The more relevant they are, the higher your Quality Score will be.
Relevance – This is how useful your ad or keywords are to your target audience.
Remarketing – This is a feature that allows you bring previous website visitors back to your site by continuously showing your ad to them as they browse other websites or perform searches.
Return on Investment (ROI) – This is the amount you spend divided by the amount you receive from your investment in terms of marketing.
Search Partners – These are other sites within the Google Search Network that show Google AdWords ads.
Split Testing – This is a testing method used to determine which ad is working the best. This can be achieved by using different ad headlines, ad copy, images, etc. to see which ones are the most effective.
Text Ad – This is an ad that only contains text and includes a link to your website or landing page.
These are some of the basic terms you need to know to become familiar with Google AdWords and PPC. If you have any questions about this terminology or would like professional help with your Google AdWords campaigns, contact me at (262) 366-9350.
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