Tips & Tricks: Google AdWords – Part I

As we all work to leverage the world of Internet marketing and social media, one tool that often comes up in our discussions is Google AdWords. Most of us know the basics; for a fee your company ad will show up in the Google search results when certain words of your choosing are searched for. But when it comes to terms such as CPC, CTR, or number of impressions, some of us get a little lost. Below is the first installment of a mini-series on Google AdWords.

Top 10 Google AdWords terms to know:

  1. Keyword: 
The keywords you choose are the terms or phrases you want to prompt your ad to appear.
  2. Ads: Your text ad that includes a headline, two lines of descriptive text, a display URL that shows your website address, and a destination URL that determines which page of your website a user will see after clicking your ad.
  3. Campaign & Ad Group: 
AdWords accounts are organized into campaigns and ad groups. A campaign has its own daily budget and targeting preferences. You may have more than one campaign running at a time. Within each campaign, you may have one or more ad groups, which are sets of related ads, keywords, and placements.
  4. 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 shown to.
  5. Click: 
If a customer sees your ad and clicks on it to learn more, it is recorded in your account as a click. Monitor your clicks to see how many people choose to enter your website from your ad.
  6. Clickthrough Rate (CTR): 
Your clickthrough rate (CTR) is a metric that helps show how your ads are performing. The more relevant your ads are, the more often users will click on them, resulting in a higher CTR. The system calculates your CTR as follows: Number of ad clicks/number of impressions x 100.
  7. Cost-per-click (CPC): 
Under the cost-per-click (CPC) pricing model, AdWords charges you for each click your ads receive. No costs are incurred if your ad is displayed and users don’t click it. Maximum cost-per-click (maximum CPC) is the highest amount that you are willing to pay for a click on your ad.
  8. 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.
  9. 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.
  10. Ad position: An ad’s ranking on the page is based on your keyword’s Quality Score and cost-per-click (CPC) bid.

For more information on Google AdWords, visit the AdWords Beginners Guide.

avatarLauren Quinn
Marketing Manager

Posted on February 18th, 2011. Filed under Popular Posts, Technical Education.