The Top Terms Used When New To Adwords

When first starting with Google Adwords, it can be quite daunting. There are many new words and industry terminology that is used. They may sound familiar to you if you have had a background in advertising. In this topic we cover the basic definitions of the most commonly used terms in Adwords.

 1. Keyword - The keywords you choose are the terms or phrases you want to prompt your ad to appear. For example, if you deliver pizza, you can use "pizza delivery" as a keyword in your AdWords campaign. When a Google user enters "pizza delivery", your ad could appear next to the search results.

 2. Placement - Like keywords, placements are another way for you to control where your ads appear. A placement is usually a website where you'd like your ad to appear. For example, if you select www.example.com/store as a placement, your ad could appear on that site.

 3. Image ad - A graphical ad, which can be static or animated, that runs on the Google Display Network. It is also called a display ad.

 4. Campaign & Ad Group - AdWords accounts are organized into campaigns and ad groups. You start with one campaign, which has its own daily budget and targeting preferences. You can have multiple campaigns running and might choose to create one campaign for each product or service you want to advertise. Within each campaign, you have one or more ad groups, which are sets of related or themed ads, keywords, and placements.

 5. Impression - The number of impressions is the number of times an ad is displayed on Google or the Google Network. It is important to monitor your impressions to see how many people your ad is displayed to.

 6. Click - If a customer sees your ad and clicks on it to learn more or to do business with you, it is recorded in your account as a click. This too is an important metric to monitor to see how many people choose to visit your website from your ad.

 7. Click Through Rate - Your click through rate 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 click through rate.

 8. Cost-per-click - Under the cost-per-click pricing model, AdWords charges you for each click your ads receive. You won't incur any costs if your ad is displayed and users don't click it. cost-per-click bidding is the default for ads running on Google and the Search Network. Most advertisers also choose it for their campaigns that focus on getting a direct response from their audience, whether a sale, sign-up, or other action.

 9. Maximum cost-per-click - The highest amount that you are willing to pay for a click on your ad. You can choose to set a maximum CPC for individual keywords or for all the keywords within an ad group.

 10. Cost-per-thousand impressions - Some campaigns, you choose to pay for views of your ad rather than clicks. The maximum cost-per-thousand impressions is the most you're willing to pay for each thousand impressions, or views of your ad. Cost-per-thousand impressions bidding is only available for campaigns that target the Display Network and not Google search or search partner sites.

 11. Quality Score - Quality Score is the basis for measuring the quality of your keyword and ad and determining your cost-per-clicks. Quality Score is determined by your keyword's click through rate, relevance of your ad text, historical keyword performance, and other relevancy factors. The higher the Quality Score, the lower the price you'll pay per click.

 There are of course many other terms that are used. But don't be too concerned when starting out. The best advice is to make a start with a campaign and learn as you progress. You'll quickly pick up what is important and pick up techniques that can help improve you campaigns effectiveness.
More info:
http://tinyurl.com/cpcexample