AdWords Glossary
- Keywords
The words that you will be bidding on. When these keywords are
searched by the user, under the right circumstances (you are bidding
an appropriate amount, your ads are performing well, a competitor
hasn’t already used your advertised URL, etc.) your ads
will show up.
- Impressions
The number of times your ads are shown on the internet per given
time frame.
- Click Through Rate (CTR)
The number of times your ads were actually clicked over the number
of impressions.
For example, if your ads have 100 impressions and they got
clicked for a total of 4 times, the CTR is 4/100 which is 4%.
NOTE: When Google evaluates your ad performance, CTR is one
of the main components Google looks at. The higher the CTR means
the more relevant your ads are to the search terms. As I mentioned
earlier, Google rewards you for this.
- Cost Per Click (CPC)
The amount of money you get charged whenever a user clicks your
ad. This can vary from keyword to keyword.
NOTE: Your goal here is to reduce the CPC while increasing
CTR; this chapter will help you accomplish that.
- Position
This determines where your ad is placed on the Google search engine.
Google numbers the top ad as number one and that number increments
by one for each one beneath that first ad. Typically the higher
the position the higher performing an ad is (as determined by
Google – this might mean higher bids and/or more relevance.)
- Conversion Rate
Perhaps the most important and yet often overlooked status of
your ad efforts. It tells you how many of your clicks are converting
to actual sales (or whatever other form of metrics you deem appropriate
such as the number of opt-ins). It is simply the number of sales
as a result of your ad efforts divided by the number of clicks
from your ad efforts.
- "Yahoo Adwords"
There is not such thing as Yahoo AdWords – this is a common mis nomenclature. There is "Google Adwords" and there is "Yahoo Search Marketing", both are pay per click services.
People often make the mistake of neglecting this revealing
number in favor of focusing on their CTR. Remember, CTR doesn’t
determine your profitability, your sales, which means conversion
rate, do!
Alright, now that we got the definitions out of the way, let’s
move on to a very critical step in your Google Adword campaign,
and that is selecting your keywords. Click here:
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Research Your PPC Market
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