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Google AdWords: Terms You Must Know To Get Started

The vernacular of Google advertising can be pretty daunting. We’ve compiled a list of Google AdWords terms you need to know to get started. We hope this list will serve as your go-to guide when you set out to create your first campaign!

Terms Related To Setup
Campaign: A campaign is often used to organize categories of products or services that you offer, and is a set of ad groups that share a budget, location targeting, and other settings. You can run multiple campaigns at any time from your Google account.
Ad Group: An ad group is your set of keywords, budgets and targeting methods for a particular objective, within the same campaign.
Keywords: The word or phrase you want your ad to show for. You bid against your competitors on this phrase. When choosing your keywords, think like your customer and what they would be searching for when they want your product, service or offer.
Terms Related To Campaign Type
Search Network: A group of search-related websites or apps where your ads can appear. When you advertise on the Google Search Network, your ad can show next to search results when someone searches with terms related to one of your keywords.
Display Network: A collection of websites — including specific Google websites like Google Finance, Gmail, Blogger, and YouTube, that show AdWords ads. This network also includes mobile sites and apps.
Search Network with Display Select: This campaign type helps you reach people as they use Google search or visit sites across the web.
Terms Related To Cost
Bid Strategy: Your bid strategy is basically how you set your bid type to pay for viewer interaction with your ads.
Daily Budget: An amount that you set for each ad campaign to specify how much, on average, you’d like to spend each day.
CPC: Cost-Per-Click is the most common bid type on Google AdWords. It means you pay every time a person actually clicks on your ad. You set your “maximum CPC” in the bidding process, which means that amount is the most you’ll pay for a click on your ad.
CPM: Cost-Per-thousand impressions is a bidding method that bases your costs on how many times your ads are shown (impressions).
Terms Related To Ad Copies
Headline: The header or title of your ad copy. Ad titles are limited to 25 characters.
Description Line: Used to highlight details about your product or service. The two description lines are limited to 35 characters each.
Destination URL: Your destination URL is the landing page your ad is directed to when it’s clicked. Your audience does not see it in the ad.
Display URL: The webpage address that appears with your ad. Google can only show up to 35 characters of your display URL. If your display URL is longer, a shortened version will be shown.
Ad Extensions: A feature that shows extra business information with your ad, like an address, phone number, store rating, or more webpage links.
Terms related to Ad Quality
Quality Score: A key metric that tells you how relevant your ads, keywords and landing page are to someone who sees your ad. A higher Quality Score can get you better ad placement and lower costs.
Ad Rank: Your Ad Rank is the value that’s used to determine where your ad shows up on a page. It’s based on your Quality Score and your bid amount.
Terms Related to Performance
CTR: Clickthrough Rate is the number of clicks that your ad receives divided by the number of times your ad is shown expressed as a percentage. For example, if you had 5 clicks and 1000 impressions, then your CTR would be 0.5%.
Conversion: A conversion happens when someone clicks your ad and then takes an action that you’ve defined as valuable to your business, such as an online purchase.
Conversion Rate: The average number of conversions per ad click, shown as a percentage. Conversion rates are calculated by simply taking the number of conversions and dividing that by the number of total ad clicks that can be tracked to a conversion during the same time period. For example, if you had 50 conversions from 1,000 clicks, your conversion rate would be 5%, since 50 ÷ 1,000 = 5%.
References:
Google AdWords Support

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