AdWords Terminology

In my Previous post I have discussed about What is Google Adwords and Now here I explain some terms commonly used in Adwords

PPC Campaign:

The service allows you to create your own ads, choose keywords to help match your ads to your audience, and control the cost of your advertising. you pay only when people click on your ad (a cost per click plan).

Keyword :

A word searched in a search command is known as keyword. Keywords are searched in any order. Use spaces to separate keywords in simple keyword searching. For ex:- If I were a Mobiles Phones seller, I might bid for the keyword "Mobile Phones" or related search queries. Most campaigns will have many different keywords.

Search Term:

A "search term" is the same as "keyword".

Text Ad:

It refers to an Ad which shows when someone search for keyword. It contains five lines Heading-25 characters, Description line1-35 characters, Description line2-35 characters, Display URL- 35 characters, Destination URL:1024 characters. Will Explain in detail some other day.

Ad group:

An ad group is a collection of keywords that have the same ad. Normally, a well-designed PPC campaign will divide its keywords into a number of different ad groups.

Google Content Network:

The Google content network is the collective name given to all the websites that display Google ads. These ads are identified by the words "Ads by Google" and are often referred to as "Adsense".

Google Search Network:

The Google search network is the Google search engine plus the other search engines that display Google Adwords ads. For Ex:- websites like AOL, EarthLink, HowStuffWorks, & Blogger etc.

Impression:

No. of times your Textads appears whenever user enters keyword related to your Website either in search network, content network and placements.

Clicks:

No. of times user clicks to your TextAd showing in search results.

CTR:

It Stands for Click Through Rate. CTR is clicks against impression. CTR is a tool to measure the success of an Ad words Advertising Campaign.

CTR can be calculated as : Clicks/Impressions * 100

CPC:

It Stands for Cost Per Click. CPC is a cost that we pay to Google for a click.
 

MAX CPC:

Maximum Bid which advertiser ready to pay for one click.

Cost:

Cost of clicks. Total amount that advertiser pay to Google.

Conversion:

Lead or sell generated depending on nature of your website through your PPC Campaign.

ROI:

It Stands for Return on Investment.

CPL:

It Stands for Cost per Lead. Total cost/number of leads.

CPM:

It Stands for cost per 1000 impressions. For some campaigns you can choose to pay Google as per 1000 impressions for your Ad rather then clicks. Max. CPM is amount you are willing to pay per thousand impressions or Ad views. CPM bid is available only for content network not for Search network and search partner sites.

Quality Score:

Google uses a "quality score" to evaluate the relevancy of the ad, the keyword and the landing page/website. Quality scores can be "poor", "ok", "good" or "great". If the score is "poor", Google will often increase the minimum bid price for that advertiser.

First Page Bid Estimates:

On Google Keyword Analysis Page you can see Bid Estimates. The CPC required for Ad to appear on the first page of Google search results when a search query exactly matches your keyword.

Minimum Bid Price:

For any keyword, Google will set a minimum amount you have to bid for your ad to be active. This minimum isn't a contant and will change from keyword to keyword and, also, from advertiser to advertiser. So, you might have to pay more to enter a market than your competitors (for more information, see "Quality Score").

Negative Keywords:

A negative Keyword is a related term that you don't want your ad to appear for. So, if you were selling Accounting software, you may want to use the word "free" as a negative keyword. By doing this, your ad won't show when someone searches for "free accounting software". And this will mean you won't be clicked on by someone who doesn't want to spend money. It also means, and this is very important in Google Adwords, that you waste impressions on the wrong people and reduce your clickthrough rate.

Split Testing:

Adwords allows you to test one ad against another. This means you can see which wording is most effective and profitable. Frequently you will find a small change can make a difference of as much as 20-40%. However, I've done split tests that have increased clickthrough by as much as 500%. Split testing is regarded as an essential tool by most Pay Per Click professionals.

Maybe I am Skipping few terms. Please let me know through your comments.