If you’re just starting out with Google Ads, you’re probably feeling a little overwhelmed! In this article, we will go through some of the major terms and methodologies to give you a better idea of how Google Ads works.
CPC (Cost-Per-Click)
Once you see it spelled out, it’s pretty straight-forward, isn’t it? CPC is the price paid for each of the clicks the campaign earns.
PPC (Pay-Per-Click)
PPC, or Pay-Per-Click) is a form of advertising where the advertiser pays for each click generated by the campaign.
CPM (Cost Per Thousand)
CPM pricing is typically used when running display ads. Since the ads could run thousands of times, the advertiser is charged every time the ad shows up for a user.
Organic Traffic
Organic Traffic is non-paid traffic. These clicks are earned by having a highly relevant topic to the keyword the user was searching for. If the searcher types in words which closely match the verbiage in the page, this result will be shown ahead of other results, without utilizing any paid advertising.
Cost
Cost is the total amount paid for a specific campaign, ad, or keyword.
Impression
An impression happens whenever an ad is shown to a user online. Some campaigns might be designed to track how many times the ad is shown and charge the advertiser based on the appearance of the ad rather than users clicking on the ad.
Click
A click is tracked any time a user interacts with the ad. This also generally will accrue a cost for each click.
Keyword
Keywords are the words associated with the information searchers are looking for. By keeping your keywords specific to your brand, product, or service, you will avoid casting a net which is too wide and attracts clicks which are not valuable, and would in fact be detrimental to a campaign because they are not finding what they are looking for. Always strive to match your keywords to the topics searchers will likely be looking for on your page.
Page Rank
PageRank looks at how relevant and authoritative a particular page is on a subject the user is searching for. Having a higher PageRank will usually result in higher organic search placement.
Ad Rank
Ad Rank is the determining calculation for where a website shows up in paid search results. A campaign with a strong Ad Rank will be made up of the bid amount, ad quality, the competitiveness of the auction, and the demographics of the searcher, to name a few components. Understanding these components and ensuring they have been optimized will allow the advertiser to achieve a high Ad Rank without placing a high bid for the top paid search result.
Quality Score
Quality Score is calculated by estimating the expected click-through rate of the ad, the ad relevance, and the landing page experience. By improving any of these, you will increase your quality score and in turn, increase your Ad Rank, and potentially lower your overall cost.
Landing Page
Landing Pages are where the ads lead to. These pages should align to the verbiage used in the ad, and the keywords the user is searching for. By creating a cohesive experience when searching, looking at results, and seeing more information on a Landing Page, it increases the likelihood a searcher will take the next step to use your product or service.