The vernacular of Google Ads Terminology can be pretty daunting. If you’re like most small business marketers, you’ve got a lot of stuff on your to-do list – and figuring out this maze of PPC, CTR and Impressions doesn’t rank high on your priorities. Google Adwords has become very crucial for your business and you need to keep up with it.
12 Common Google Ads Terminology You Should Know About
Here’s a short glossary of 12 Google AdWords terms you need to know, to get you started and increase your conversion rates with your paid campaigns.
These common terms will help you set up, manage, and optimize your Google Ads. Some of these are specific to Google Ads, while others are generally related to PPC. Either way, you’ll need to know these to run an effective ad campaign.
Your AdRank determines your ad placement. The higher the value, the better you’ll rank, the more eyes will fall on your ad, and the higher the probability of users clicking your ad. Your AdRank is determined by your maximum bid multiplied by your Quality Score.
Google Ads is based on a bidding system, where you, as the advertiser, select a maximum bid amount you’re willing to pay for a click on your ad. The higher your bid, the better your placement. You have three options for bidding: CPC, CPM, or CPE.
- CPC, or cost-per-click, is the amount you pay for each click on your ad.
- CPM, or cost per mille, is the amount you pay for one thousand ad impressions; that is when your ad is shown to a thousand people.
- CPE, or cost per engagement, is the amount you pay when someone takes a predetermined action with your ad.
And, yes, we’ll review bidding strategies below.
3. Campaign Type
Before you begin a paid campaign on Google Ads, you’ll select between seven campaign types: search, display, video, shopping, app, smart, or performance max.
- Search ads are text ads that are displayed among search results on a Google results page.
- Display ads are typically image-based and are shown on web pages within the Google Display Network.
- Video ads are between six and 15 seconds and appear on YouTube.
- Shopping campaigns appear on search results and the Google shopping tab.
- App campaigns use information from your app to optimize ads across websites.
- Smart campaigns have Google finding the best targeting to get you the most bang for your buck.
- Performance Max is a new campaign type that lets advertisers access all Google Ads inventory from a single campaign.
4. Click-Through Rate (CTR)
Your CTR is the number of clicks you get on your ad as a proportion of the number of views your ad gets. A higher CTR indicates a quality ad matching search intent and targeting relevant keywords.
5. Conversion Rate (CVR)
CVR is a measure of form submissions as a proportion of total visits to your landing page. Simplistically speaking, a high CVR means that your landing page presents a seamless user experience that matches the ad’s promise.
6. Display Network
Google ads can be displayed on either search results pages or a web page within Google’s Display Network (GDN). GDN is a network of websites that allow space on their web pages for Google Ads — these ads can be text- or image-based and are displayed alongside content relevant to your target keywords. The most popular Display Ad options are Google Shopping and app campaigns.
Ad extensions are extra information about your business, such as your local address, phone number, and even coupons or additional websites. They’re what shows up in blue below your ad descriptions. These extensions fall under one of five categories: Sitelink, Call, Location, Offer, or App; we’ll cover each of these ad extensions below.
If you want to know Google Ads Terminology, you can also go through Google’s own AdWords Glossary.
When a Google user types a query into the search field, Google returns a range of results that match the searcher’s intent. Keywords are words or phrases that align with what a searcher wants and will satisfy their query. You select keywords based on which queries you want to display your ad alongside. For example, a searcher that types “how to clean gum off shoes” will see results for advertisers that targeted keywords like “gum on shoes” and “clean shoes.”
Negative keywords are a list of keyword terms that you do not want to rank for. Google will pull you from the bid on these keywords. Typically, these are semi-related to your intended search terms but fall outside of the realm of what you offer or want to rank for.
9. Billing Threshold
Your billing threshold is the level of spending that triggers a charge to you for the ad costs. It applies to automatic payments, and the threshold level starts at $50. It you reach that within 30 days, you’ll be billed, and your threshold then raises to $100 and so on.
10. Pay-per-click (PPC)
Pay-per-click, or PPC, is a type of advertising where the advertiser pays per click on an ad. PPC is not specific to Google Ads, but it is the most common type of paid campaign. It’s important to understand the ins and outs of PPC before launching your first Google Ads campaign.
11. Quality Score (QS)
Your Quality Score measures the quality of your ad by your click-through rate (CTR), the relevance of your keywords, the quality of your landing page, and your past performance on the SERPs. QS is a determining factor in your AdRank.
12. Split Testing
Split testing includes A/B and multivariate testing. It’s a method of controlled marketing experiments with the goal being to improve your objective results (such as higher CTR’s, increased conversion or even better Ad Ranking).
There it is – all the basic terms you need to get started with Google AdWords. Now you can talk like a pro!
To Learn basics about Google Ads, checkout out blog on What is Google Ads? How does Google Ads Work and its Benefits?