Google Adwords Glossary Part I

We know that getting in the Adwords world could be overwhelming, that's why we bring you today this super Google Adwords glossary with the different definitions you should know to understand what it is and how Google Adwords works.

Ad Group

An ad group contains one or more ads that are targeted to a shared set of keywords. As we have seen, an AdWords campaigns consists of one or more ad groups, which are divided according to a common theme for example, one type of product or service you offer.

Ad Rank

The position in which an ad appears on the Google search results page based on a ranking system as defined below.

This ranking is calculated from the price you want to pay -bid-, the quality level (the expected clicks, ad relevance and landing page experience) and expected impact of the extensions added and potentially, others ad formats.

A higher score in the ranking, means better positions in SERP.

Ads are the message you create in your campaign and that appears to the user. It will be a text only ad when appears on the results pages of search engines (SERP) when Internet users make a query or search,

Other types of ads include: images or video ads, when the campaign is running in the Display Network affiliated with Adsense, or just video, if you choose to display on Youtube.

AdSense

Google’s tool that allows blogs or website owners to insert banners related to the content they offer to increase their income.

One would say that AdSense is the reverse of the AdWords coin when, as an advertiser, when you decide to run your banners on Google Display Network those will appear on websites that are doing AdSense.

Banner Ad

Advertising piece that is inserted into the AdSense spaces on websites or blogs. Banner Ads are also used in AdWords and Bing, for their display ad campaigns.

These ads can be text, images, gif, video and when you click on them they take you to the advertiser landing page or website. They have a tracking code so that the advertiser knows how many clicks has generated.

Campaign

Is a group of ads, - ads, keywords and bids - which share: budget, location targeting and other settings. Creating campaigns is recommended to organize the categories of products or services that your business offers.

Campaign Type

In Google AdWords campaign you have different options:

Display search selection: the ad will show both the Search Network - SERP of Google-like and the Display Network.
Only for the Search Network: only the ad will be shown on the Google results page when users search with the keywords you have chosen.
Only for the Display Network: only the ad will be shown on the Google Display Network I announce text, image or video-, being able to do Remarketing.
Shopping: For physical products, so-called "PLAs product", photo, title, product price and shop name.
Video: Your video will be shown on the YouTube channel.

CPA (Cost Per Acquisition)

It is the price you pay when a user completes a conversion on your ad, ie, when your visitors complete a goal like buy a product, download a PDF, fill out a form, etc.

Formula: CPA = Cost

Conversions

CPC (Cost Per Click)

The cost per click (CPC) is the price that cost you each time that a user clicks on your ad.

That is, you will only pay each time someone click on your ad, not just for the sake of showing it. The maximum cost per click is the maximum CPC that you’re willing to pay for your ad. Cost per click is also dependent on the amount of competition for your keyword as well as ad position, etc.

Formula: CPC = Cost

Clicks

CPM (Cost Per Thousand Impressions)

The cost per thousand impressions, aka “cost per mille”, is the price you pay for every 1,000 times your ad is displayed to users, 1,000 impressions. This method of calculation is typically found used when bidding on impressions rather than on clicks.

CTR (Click Through Rate)

The click through rate is the percentage that shows how often people who see your ad click on it. It’s one of the factors used to calculate the performance of keywords and ads. It’s calculated by dividing the number of clicks on an ad by the number of times it is displayed
(CTR = clicks / impressions).

Daily Budget

Price you are willing to pay as maximum each day of your campaign.

Display Network

Is a gathering of millions of websites, applications and videos in which AdWords ads can appear. The owners of these sites manage ads displayed through AdSense. On the Display Network, you can create text ads, image and / or video to make them more visible.

Display Planner

It’s a AdWords tool that provides ideas and tips -keywords, interests, topics, locations, site, apps or videos, demographics and remarketing- to help you create, plan and target a Display Network campaign based on a specific landing page or your customer’s interests and then you can add it to your AdWords account.