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Google Ads - Glossary of Terms

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Google Ads - Glossary of Terms

DEFINITION: GOOGLE ADS

Google Ads is a paid advertising platform that falls under the pay-per-click (PPC) marketing channel, in which you (the advertiser) pay per click (CPM) on an ad.

Google Ads is an efficient way to drive qualified traffic, or good-fit customers, to your business while they are searching for products and services similar to the ones you provide. You can increase your website traffic, phone calls, and in-store visits by using Google Ads.

Google Ads enables you to create and distribute well-timed ads to your target audience (via mobile and desktop).

Does Google Ads work?

Yes. You can create a high-ROI marketing campaign with an optimized ad campaign and lead flow.

Why advertise on Google?

Google is the most popular search engine, with over 5 billion searches per day. Google is a search engine that people use all over the world to ask questions, which are then answered using a combination of paid advertisements and organic results.

Furthermore, advertisers earn $8 for every $1 spent on Google Ads, according to Google. So there are a few reasons why you should consider Google advertising.

Google Ads Terms to Know

These common terms will assist you in setting up, managing, and optimizing your Google Ads. Some of these are specific to Google Ads, while others are more general to PPC.

AdRank

Your ad placement is determined by your AdRank. The higher the value, the higher you'll rank, the more eyes will fall on your ad, and the more likely users will click on your ad. Your AdRank is determined by multiplying your maximum bid by your Quality Score.

Bidding

Google Ads is based on a bidding system in which you, as the advertiser, set a maximum bid amount for a click on your ad. The higher your bid, the higher your position. You can bid in three ways: CPC, CPM, or CPE.

1. The cost-per-click, or CPC, is the amount you pay for each ad click.

2. The cost per mille, or CPM, is the amount you pay for one thousand ad impressions, or when your ad is seen by a thousand people.

3. CPE, or cost per engagement, is the amount you pay when someone clicks on your ad and takes a specific action.

Campaign Type

Before you begin a paid campaign on Google Ads, you’ll select between one of three campaign types: search, display, or video.

1. Search ads are text advertisements that appear alongside search results on a Google results page.

2. Display ads are typically image-based and appear on web pages that are part of the Google Display Network.

3. YouTube has video ads that last between six and fifteen seconds.

Click-Through Rate (CTR)

Your CTR is the number of clicks on your ad as a percentage of the number of views your ad receives. A higher CTR indicates a high-quality ad that corresponds to search intent and targets relevant keywords.

Conversion Rate (CVR)

CVR is a metric that measures form submissions as a percentage of total visits to your landing page. Simply put, a high CVR indicates that your landing page provides a seamless user experience that matches the ad's promise.

Display Network

Google ads can appear on search results pages or web pages within Google's Display Network (GDN). GDN is a network of websites that allow Google Ads to be displayed on their web pages; these ads can be text-based or image-based, and they are displayed alongside content relevant to your target keywords. Google Shopping and app campaigns are the most popular Display Ad options.

Extensions

Ad Extensions allow you to add extra information to your ad at no extra cost. These extensions are classified into one of five types: site link, call, location, offer, or app.

Keywords

When a Google user enters a query into the search field, Google returns a set of results that correspond to the searcher's intent. Keywords are words or phrases that correspond to what a searcher is looking for and will answer their query. You choose keywords based on which queries you want your ad to appear alongside. A searcher who types "how to clean gum off shoes" will see results for advertisers who targeted keywords such as "gum on shoes" and "clean shoes."

Negative keywords are keyword terms for which you do not want to rank. Google will remove you from the bid list for these keywords. These are typically semi-related to your intended search terms but fall outside of the scope of what you offer or want to rank for.

PPC

Pay-per-click, or PPC, advertising is a type of advertising in which the advertiser pays for each click on an ad. Although PPC is not unique to Google Ads, it is the most common type of paid campaign. Before launching your first Google Ads campaign, it's critical to understand the fundamentals of PPC.

Quality Score (QS)

Your Quality Score is determined by the click-through rate (CTR) of your ad, the relevance of your keywords, the quality of your landing page, and your past performance on the SERP. QS is a factor in determining your AdRank.

To learn more about Google Ads, keep in touch with us!



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