Google AdWords for Beginners Part 2
Here is part two of this mini series and it is going to introduce you to a few terms that you will hear or read about in the world of Search Marketing and Google AdWords.
It is key when you start working with Google AdWords or any other Pay Per Click (PPC) system that you have a good understanding of the key concepts. Here is a list of some of the terms that you will come across.
Ad Description/Creative
This is the advert that you have created in your Google AdWords Campaign. This advert is shown when someone searches for the keywords that you are bidding for, or on the Content Network when the page the visitor is on contains content relevant to your ad keywords.
Click-Through Rate (CTR)
The Click Through Rate is one of the most important metrics to be monitored in a PPC campaign. The CTR is the ratio of the number of times your ad is shown divided by number of clicks on your ads. So as an example:
Your AdWords advert is shown 1500 times and receives 150 clicks your CTR = 1500/150= 10%
Conversion Rate
Conversion Rate is the the number of sales or equivalent goals divided by number of clicks on your ad (visitors). So if you receive 150 clicks and 10 people buy your book then you have a conversion rate of 10/150 * 100 = 6.66%
Cost-Per-Click (CPC)
This is the amount that you pay when someone clicks on your ad. Remember the beauty of PPC and AdWords is that you only pay when someone clicks your ad.Landing PageThis is the web page that the user will go to when they click on your ad. More info here.
Organic/Natural Search Listings
These are the listings determined by the search engines ranking mechanism and are not paid for.
Pay-Per-Click (PPC)
Also called PPC, this is a form of advertising where you only pay for the clicks that you receive, thus only paying for clicks from interested visitors.
Keywords
Keywords are the words that you tell Google to display your advert when someone searches for these ads.
Advertisers bid for keywords and so more profitable keywords will cost more per click.
Return of Investment (ROI)
This is the money made from a campaign divided by the cost of running it. If it’s over 100% you are making money. For example, if you spend $50 on a PPC campaign and generate $100 revenue then your ROI would be 200%.
Please feel free to contact me with any more AdWords or PPC related terms that I have missed and I will add them in.
