Pay Per Click - Glossary & PPC Terms

PPC (Pay per Click/ Cost per Click)

Account (Campaign [Ad Groups])

An Ad Words account can contain up to 25 campaigns

A campaign can have up to 100 ad groups

Ad groups can include hundreds of keywords.

Campaign: A component of your account that allows you to focus your advertising on specific products or services. Each campaign can contain multiple ad groups.

Campaign is set of ad groups

An Ad Words account can contain up to 25 campaigns

Ad Group: A collection of ads within a campaign that corresponds to a group of related keywords.

Ad groups is set of Ads, A campaign can have up to 100 ad groups.

Impression: The number of times an ad is displayed on Google or on sites in the Google Network.

Clicks:  when ads hits on impression is called Clicks

 CPC (Cost Per Click) - Cost per click is often used when advertisers have a set daily budget. When the advertiser's budget is hit, the ad is removed from the rotation for the remainder of the period.

Cost per click is calculated by dividing the advertising cost by the number of clicks generated by an advertisement.

  

Cost per click ($) = Advertising cost ($) ÷ Ads clicked (#)

                       

Click-through Rate (CTR): CTR helps measure the performance of your ads and keywords. The number of clicks your ad receives divided by the number of impressions.

                                  

Conversion – (lead from fillings) When a person who clicked your ad completes an action you consider valuable, such as a purchase, a phone call, newsletter sign-up, lead, view of a certain page, or download.

CPM:     Cost per Thousand Impressions, Its Generate in Display Networks helps to shown no ads, you are charged every 1,000 times your ad appears on Google whether it is clicked or not

CTA:   Cost to Acquisition

CPA:   Cost Per Acquisition = Total Cost / Conversion

CPL:   Cost per Lead

ROI Percentage= (Revenue-Cost)/ Investment x 100

                                              Keywords:

A specific word, or combination of words, used to target your ads to potential customers. When a user searches on your keyword, your ad might be shown.

Ad groups can include hundreds of keywords.

4 Types of keywords

Broad Match

Showing your ad whenever any variation of your keyword

Phrase Match

Showing your ad only when the search term contains your keyword. If keyword is chocolate coffee beans, ad will show only on searches that swiss chocolate coffee beans and chocolate coffee beans dessert, for example, “chocolate coffee beans”.

Exact Match

Showing your ad when the search term is exactly the same as your keyword. for example, [coffee beans].

Negative Match

Showing when a word or phrase you specify is part of a search term. If you specify cheap as a negative match, for instance, your ad won’t show for search terms such as cheap coffee beans. You choose this option by putting a minus sign before your keyword; for instance, –cheap.

Networks:

2 types of Networks

Search Networks – Ads that comes from search results like search engine sites & that results which shown after search query

Display Networks – Ads that shown only in form of banner images &

Video Networks (online Networks) – ads where comes from you tubes

Maximum Cost-per-click (CPC) Bid: The maximum amount you’re willing to pay each time a user clicks on your ad for a particular keyword. You can set the maximum CPC bid at the ad group or keyword level.

Quality Score: The measurement used to determine your ad’s relevance to user searches. Your Quality Score is determined by your keyword’s click-through rate (CTR) on Google and by the relevance of your ad text, keyword, and landing page.