Basic Google Adwords Glossary

Multivariate Testing

A SPLIT TESTING method that lets AdWords users test multiple ad texts at once. You could test all of your ad headlines, descriptions and display URLs by mixing and matching each of them. For example you have 3 ads: A, B and C. With multivariate testing, you mix and match the different parts of those 3 ads. Take the headline from B, description from A and display URL from C and test against other varieties to find the perfect ad.

Recommended Daily Budget

A budget that is determined by Google Adwords to have your ad show as many times as possible for your keywords

Google Search Network

A collection of sites displaying Google search results

Conversions (many-per-click)

A count of all of the conversions completed after a single click on an ad

Keyword Tool

A free Google tool that helps to identify relevant key phrases to target

AdWords Editor

A free desktop application used for managing an AdWords account, including making bid adjustments, creating new ads, changing ad delivery and much more.

Cost-Per-Click (CPC) Bid

A maximum amount one is willing to spend for clicks on an ad. -This can be set at the ad group level for all keywords, or it can be set individually for each keywords.

Quality Score

A numerical score assigned by Google Adwords utilized in their Pay Per Click platform. The Quality Score is determined by an ad's Click Thru Rate, keyword relevance, Landing Page relevance and other factors. Combining the ad's Quality Score with your maximum Cost Per Click and advertiser competitiveness determines your ad's position and what you end up paying per click

Cost-Per-Action (CPA)

A pricing model that charges every time a visitor completes a specific action (purchase, e-mail sign up, subscription, and so on)

Cost-Per-Thousand Impressions (CPM)

A pricing model that charges for every 1,000 impressions an ad has rather than by click as in CPC bidding.

Negative Keyword

A word or phrase used in pay per click advertising that allows you to block unwanted searches or impressions. Example: If you sell only red widgets, you want to add blue, green, black, etc. as negative keywords. This way your ad will not be shown for a product you do not sell.

Image Ads

Ads that use an image or graphic. These ads can only appear on sites in the Google Content Network.

Text Ad

Ads that use only text to convey the message. This is the primary type of ad for Google AdWords and the only type shown in Google search results..

Conversion Tracking

Allows you to track various actions or goals on your Website like leads, purchases, signups, contacts, etc. -Conversion tracking is usually coupled with an analytics like Google Analytics

Broad Keyword Match

Allows your ad to appear for searches on similar phrases and variations. For example, if the broad match keyword was "yellow shoes" your ad would show for searches like "yellow running shoes" or "shoes with yellow laces" or "yellow and blue shoes"

Ad Scheduling

Also known as Day Parting, ad scheduling allows an advertiser using a pay per click engine to control the day an time their ads appear. -Some pay per click engines also allow you to control your bids during a certain time of day.

Content Network

Also known as contextual targeting, these networks serve paid advertising via text, image and video ads on Websites that offer similar content to what you are advertising.

My Change History

An AdWords tool that gives users a history of changes made to campaigns, ad groups and keywords, such as bid increases, ad text edits and more.

Accelerated Ad Delivery

An ad serving method that displays your ads as often as possible until the daily budget is reached

Standard Ad Delivery

An ad serving method that shows ads across a day to make sure you don't accrue all of your clicks early on

Contextual Targeting

An ad targeting system that matches ads that use keyword targeting to relevant and related sites on the Content Network

AdWords Discounter

An automated tool that monitors and adjusts the actual cost-per-click (CPC) so that the lowest possible bid is paid for an ad's position. -This means that you pay the minimum possible CPC needed to exceed the next ranking ad.

Position Preference

An option that lets you pick where you want your ads to appear among all adds on a given page

Ad Group

Contains one or more ads with a target set of keywords and/or placements

Keyword Matching Options

Different ways a keyword might trigger an ad. These include Broad Match, Phrase Match, Exact Match, and Negative Match

Double Serving

Displaying more than one ad for the same company at the same time

Display Ad

Graphical ad format that includes Image ads, Flash ads, and animated .gif ads

Ad Delivery

How quickly your ads will show in a single day. -AdWords offers two choices for ad delivery- Standard and Accelerated

Relevance

How useful the ad or keyword is to the searcher or audience

Distribution Preference

Indicates whether or not your ads will appear on the Google Search site and/or the Google Content Network

Ad Rationing

Is a feature of Google Adwords that spreads the delivery of your ads throughout the day so as to not exhaust the daily budget early in the day

Campaign

Is the first level of the AdWords structure. -A campaign consists of one or more ad groups and each ad group has a set of ads and keywords. -A campaign can represent a broad spectrum of products or services, where an ad group is focused on a single product or service. -For example you could have a "Headphone" campaign and within the campaign you could have a "wireless headphone" ad group, a "in-ear headphone" ad group and a "clip on headphone" ad group, each of which have keywords specific to that product category.

Click Through Rate (CTR)

Is the number of clicks an ad receives divided by the number of times that ad has appeared in a given time. -This gives a good indicator of ad performance. -A high CTR means an ad is performing well, a low CTR means poor performance. CTR=# of Clicks/# of Impressions

Split Testing

Is used to determine the best options for ads. By showing multiple ads over a course of time, split testing helps determine which ad texts, images, message and more are most effective.

Ad Placement

Locations on the Google Content Network where your ad can appear based upon target keywords and relevancy to your ad. -This could be across an entire Website or on a single page of a site. -Placements can be custom-tailored in the AdWords account manager or you can let Google choose relevant placements for your ads.

Placements

Locations where your ads have appeared in the Google Content Network

Return on Investment

Measured by how much you receive from your online marketing investment. An example would be if you spend $1000 on Pay Per Click ads and you make $2000 in profit from sales, then your Return on Investment would be 100% Calculated: ($2000-$1000)/1000=100%

Ad Variations

Multiple versions of an ad for a single product or service in the same ad group targeting the same keywords. -Ad variations let you test different ad copy to see what is attracting your target audience.

Organic Search Positions (Rankings)

Non-paid search engine results. Organic search positions are calculated with complicated algorithms unique to each search engine.

Ad Auction

Occurs every time a search is performed to determine which ads will show for the query and in what order.

Click

Occurs whenever a user sees your ad and clicks on it. -Also known as Click Through

Exact Keyword Match

Only shows your ad for that exact phrase. -If your exact match keyword was "yellow shoes" your ad would only show when that phrase was searched, and not when phrases like "blue and yellow shoes" or "yellow shoes for running" were searched

Phrase Keyword Match

Only shows your ad when that key phrase is searched with words in the specified order. Ads will appear in searches with the phrase plus words before or after it. For example if your phrase match keyword was "yellow shoes", your ad would appear for searches like "leather yellow shoes" or "blue and yellow shoes" but not for searches like "yellow leather shoes" or "shoes with yellow laces" because the phrase was broken

Maximum Cost Per Click

Or Max CPC is a term used by Google Adwords to denote the most you are willing to pay for one click on your ad. However, this does not mean you will actually pay this amount. Other factors such as Quality Score and competition will play a factor.

Automatic Placements

Placements that Google finds automatically based upon keywords in your ad group.

Cost/Conversion

Shows how much a single conversion (purchase, e-mail signup, subscription, page view, etc.) cost. -Total Cost/# of Conversions

Conversions (1-per-click)

Since multiple conversions can be completed after a single ad click, this number records only one conversion per click

Search Partners

Sites within the Google Search Network that display Google AdWords ads

Average Position (Avg. Pos)

Tells the average position an ad appears in search results when that keyword is searched. -For example, an average position of 2.4 means that an ad usually appears between the 2nd and 3rd positions

Keyword insertion

Term used within the PPC advertising field allowing for dynamic insertion of a target keyword either into the headline or description of your ad text. This will prominently bold the keyword allowing for greater visibility and higher Click Thru Rates

Display URL

The URL displayed in an ad. -This is not necessarily the URL of the page a visitor will arrive at after click

Destination URL

The URL of the page a visitor will be directed to after clicking an ad

Conversion Types

The action completed to count as a conversion. -Email signup, purchase, subscriptions, etc.

Frequency Capping

The action of limiting the number of times your ad is seen by a unique user over a given time period on the Google Content Network. -This sets the number of impressions allowed for a day, week or month

Daily Budget

The amount you are willing to spend in a single day for a single campaign

Cost-Per-Click (CPC)

The amount you will pay for a single click on your ad.

Average Cost-Per-Click (Avg. CPC)

The average amount paid each time an ad is clicked. Cost of all clicks/# of clicks=Avg. CPC

Frequency

The average number of times an ad was seen by a unique user over a given time period

Google Content Network

The collection of sites and applications that display Google AdWords based on the content of the site

End Date

The date at which you would like your ad campaign to end. -An indefinite date can be set too.

Impression

The number of times an ad has been shown

Impressions per day

The number of times an ad has been shown for a single day.

Ad Ranking/Positioning

The order in which your ad appears based upon the keyword maximum bid and ad Quality Score

Ad Rotation Settings

The order in which your ads are delivered as it is only possible to show one ad at a time. -Google offers two ad rotation settings. -Optimize (default) delivers those ads that are the best performing more often. -This will likely receive more impressions and clicks overall, since they are more attractive and usually have better positioning -Rotate delivers ad more evenly

Conversion Page

The page at which the visitors completes the action to be counted as a conversion. -E.g. shopping cart, interest form, subscription form,etc.

Mouseover Rate

The percentage of time users mouseover an ad for 1 second or longer

Interaction Rate

The percentage of time users spent interacting with a display ad. For example, a video ad could have an interaction rate that is the percentage of times a visitor actually clicks on your ad to watch the video

Conversion Rate

The rate of which visitors or prospects take a desired action on your site. -Desired action steps can involve purchases, leads, contact form completions, newsletters, or email sign ups, registration for White Papers, etc. -Example: If 100 visitors come to your site and 3 signup for your monthly newsletter than your conversion rate would be 3%

Landing Page

This is the Web page that a searcher arrives at after clicking on an advertisement.

Keyword

Those phrases than an ad will be targeted at. When a targeted keyword is searched, the ad will appear.

Conversion

When a visitor, after clicking on an ad and arriving at your site, completes a specified action. -This could be completing a purchase, signing up for an e-mail, subscribing to an RSS feed and so on

Geo-Targeting

When an advertisement is displayed only in certain locations. Geo-targeting allows you to specify who will see your ads based on the location of the searcher. If you want to sell your services or products to a localized market, Geo-targeting is the method to use