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| Google Adwords Terminologies |
Keyword
The keywords are the phrases, words or terms you have selected for which you want your ad to be appear in user's search result. For example, if you deliver VoIP Software, you can use keyword like "Custom VoIP Software", "Ready to use VoIP Solution" in your AdWords campaign. If someone searches with phrases like "VoIP Solution Provider", your ad may appear in the paid link section of Google search result.
Negative Keywords
List of terms, phrases or words for which you want the ad to be prevented from appearing. For example, If you are selling your VoIP Softwares, you may use "free", "Download", "trial", etc. kind of words as negative keywords.
Image ad
You can use animated or graphical image ad to make your ad more attractive to users. Such ads also known as display ads.
Search Network
If you have opted for Google Search Network, your ad will be appearing on Google and other partner search engine website's search result pages. You may display text ads.
Display Network
If you have selected display network, your ads will be appearing on websites which are partnered with Google Adwords like YouTube, Blogger, some news websites and other blogs. You may display image or video ads with different format.
Placement
In display network ad setting, you can select number of websites where you want to your ads to appear. Such list of websites is known as placements.
Campaign & Ad Group
AdWords accounts are organized into campaigns and ad groups. You start with one campaign, which has its own daily budget and targeting preferences. 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, which are sets of related ads, keywords, and placements.
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 exposed to.
Click
If a client came across your ad and clicked on it to learn more or to make conversion, it will be recorded in your account as a click. Clicks will be available for ads, placements and keywords which will allow you to optimize your account's performance.
Quality Score
Quality Score is the basis for measuring the quality of your keyword and ad and determining your cost-per-clicks (CPCs). Quality Score is determined by your keyword's clickthrough rate (CTR), relevance of your ad text, historical keyword performance, and other relevancy factors. The higher your Quality Score, the lower the price you'll pay per click.
Cost-per-click (CPC) or Pay Per Click
Under the cost-per-click (CPC) pricing model, AdWords charges you for each click your ads receive. CPC bidding is the default for ads running on the Search Network. Most advertisers also choose it for their campaigns that focus on getting a direct interaction from their audience, for a sale, sign-up, subscribe or other action.
Maximum cost-per-click (maximum CPC)
The maximum amount that you are willing to pay for a single click on your ad. You can choose to set a maximum CPC for individual keywords or for all the keywords within an ad group.
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 target the Display Network.
Clickthrough Rate (CTR)
Your clickthrough rate (CTR) is the ration of your ad impression and clicks it acquired. The higher CTR incurs in a higher quality score which benefits with low cpc in bidding .
First page bid estimates
Your AdWords account will show a first page bid estimate for each of your keywords. This metric estimates the cost-per-click (CPC) bid needed for your ad to reach the first page of Google search results when the search query exactly matches your keyword. The first page bid estimate is based on the Quality Score and current advertiser competition for that keyword.
Top 3 Bid Estimate
Google Adword manager tool will show you the suggestible bid to place your ad on top three positions of the search result. Higher position may increase the CTR.
Optimization
An optimization is the process of creating. editing and removing the keywords and ad, fine tuning the settings and bids and to make other necessary changes to improve the performance of AdWords ads which can improve your ROI or other end goals which you intend to achieve.
