Online advertising is an extremely powerful tool for businesses of all sizes, but understanding everything it involves can be quite a daunting task, full of jargon and acronyms.
To help you understand this language and therefore make more informed decisions, Chris has put together this guide of some of the common terms you might come across and what they all mean.
PPC Glossary
A
Ad Extensions
Additional pieces of information that can be added to your ads, such as sitelinks, phonecall, and location extensions. They can improve click-through rates and provide more information to potential customers.
Ad Rank
A score determined by Google Ads based on your maximum bids and your ads quality score to determine where your ad appears in search results.
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B
Bid
The amount you are willing to per click on your ad.
Bid Adjustments
Modifications to your default bids based on factors like device (mobile, desktop), location, time of day, and audience demographics.
Bidding Strategy
Used to define which metrics we want our campaigns to focus on in order to support our goals. For brand awareness we might use an awareness based strategy to focus on reach, whilst for a lead generation campaign we would use a conversion based strategy to show our ads to people more likely to convert.
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C
CTR (Click Through Rate)
The percentage of people who click on your ad after seeing it. A high click-through rate means that an ad is engaging and relevant to the user.
Conversion
A desired action taken by a user after clicking on your ad, such as making a purchase, filling out a form, or signing up for a newsletter.
Conversion Rate
The percentage of users who complete a desired action after clicking on your ad.
Conversion Value
A measurement of the monetary value of actions people are taking. For example you might use the actual value of ecommerce purchases or assign your own values to different types of leads to approximate the performance of ads.
CPA (Cost Per Acquisition)
Otherwise known as cost per conversion, the average amount your campaigns spend to generate one conversion.
CPC (Cost Per Click)
The amount you pay each time someone clicks on your ad.
CPM (Cost Per Thousand)
The cost of gaining 1,000 impressions on an ad. More commonly used in ads focused on driving awareness rather than website traffic.
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D
Daily Budget
The maximum amount you’re willing to spend on your PPC campaigns each day. This can fluctuate day to day, but will always average out over 30 days.
Display Network
Google’s network of websites and apps where your ads can appear if we run certain types of campaigns.
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E
Exact Match
A keyword matching option that only triggers your ads when users search for that exact keyword or a close variant (e.g., “red shoes” will match “red shoes” but not “red boots”).
Extensions
See “Ad Extensions” above.
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G
GA4 (Google Analytics 4)
The latest rendition of Googles analytics and reporting software. Used to track and present key insights and performance of your web pages, apps and more.
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K
Keywords
Words or phrases in a search query that we chose to trigger our ads when a user searches on google.
KPIs (Key Performance Indicators)
Metrics used to measure the success of a campaign at a quick glance. This might be a specific number of people reached, amount of site traffic, or a target cost per conversion.
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L
Landing Page
The webpage that users are directed to after clicking on your ad. A well-designed landing page should be relevant to the ad and encourage conversions.
Lead
A potential customer who has shown interest in your product or service, such as by filling out a form or requesting a quote.
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N
Negative Keywords
Identifies words and phrases used in a search that we want to avoid. If a search query contains a negative keyword our ads won’t trigger.
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P
PMax (Performance Max)
A type of campaign within the Google ads platform that uses AI strategies to display ads across a range of Google’s platforms in order to maximise performance.
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Q
Quality Score
A metric used by Google Ads to assess the quality and relevance of your ads, keywords, and landing pages. A higher Quality Score can lead to lower costs and better ad positions.
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R
Remarketing
A strategy that allows you to show ads to people who have previously visited your website or interacted with your brand.
ROAS (Return on Ad Spend)
A measurement of the ratio of conversion value to ad spend, usually measured as a percentage. For example a £100 ad spend that returned £500 of conversion value would have a ROAS of 500%.
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S
SERP (Search Engine Results Page)
The page of results that appears when you search for something on a search engine.
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T
Tracking
The process of monitoring the performance of your PPC campaigns and identifying areas for improvement.
Targeting
The process of identifying and reaching your ideal audience through your PPC campaigns. We can target using things behaviours, age, location, search queries.
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Mastering PPC terminology is key
By understanding these key terms, you’ll be better equipped to navigate the world of online advertising, making informed advertising decisions to maximise your campaign success.
Keep this guide handy as a reference, and don’t hesitate to keep learning. Staying updated on the latest trends and strategies will help you get the most out of your PPC efforts!
If you’d like any additional support with your PPC strategy, check out our PPC services and find out more.