Get with the Google Ad Lingo

If you’re like most business execs, you’ve got a lot of stuff to do, and we’re thinking that deciphering the terminology of Google Adwords isn’t at the top of your to-do list! Here’s the thing, though: Google ads can be super effective at driving exactly the kind of people you want to your website at exactly the time they happen to be searching for your products and services. You know what that means? Two words every business exec loves to hear: Qualified leads.

So rather than push Google ads to the bottom of your priorities, let us help. For starters, here’s a glossary of lingo — after all, you need to be able to talk the talk before you can walk the walk, right?

CampaignAn organized collection of ads with a common goal.

Campaign TypeThe type of campaign you wish to run depends on where you want your ads to be seen — in other words, you determine the type by choosing the location or web pages on which you’d like your ads displayed.

Ad GroupAll the ads under the same keywords, budget and objective within a campaign.

Daily budget – What you’re willing to spend per day per ad. Your daily cost is based on a daily average per month, which means it can vary from day to day, but it never exceeds the budget you set. Once you reach the max, your ad simply no longer shows that day and comes back the next. So, you never pay extra. That Google —  always thinking!

Cost Per Click (CPC)Here’s another incredibly awesome fact: Instead of paying up front, you only pay for Google Adwords when you get results! In this case, you pay every time a user clicks on your ad and is directed to your website. This is a good strategy if your goal is to boost traffic.

Pay Per Click (PPC)Another term for Cost Per Click. CPC, PPC — same thing. Kind of like Po-TAY-to, Po-TAH-to.

Cost Per Thousand (CPM)You pay for every thousand times your ad is viewed (Fun Fact: M is the Roman numeral for 1,000). With this strategy, you’re not out any money until you’ve reached a great big audience. This is good for building awareness of your brand — all depends on your goals.

Cost Per ImpressionSame as CPM. Again with the potato thing.

Click Through Rate (CTR) – Your CTR measures how many people who see your ad actually click through to your specified destination.

Bidding on Keywords – this is the down and dirty of starting a strong google ad campaign. You choose a list of keywords that are relevant to your business — words people would most likely use when searching for whatever it is you sell. The catch is, your competition is making the exact same list. Roll up your sleeves and let the bidding begin! You’re basically entering into an auction for the search term you want your ad to show up for, but it doesn’t just come down to how much you’re willing to pay. That’s right, the highest bidder doesn’t always win. Google also considers your quality score. What the heck is that? Glad you asked…

Quality ScoreThis is the score Google gives you based on a number of factors, including things like relevant, quality content on the page the ad will take people to, the relevance of the ad itself in regards to the keyword you’re bidding on, the responsiveness of your site so the ad performs well on all devices, your CTR, along with a few other considerations. The cool thing is, a high quality score can catapult you past a higher paying competitor (insert evil laugh here).

Ad RankYour ad’s ranking based on the combination of your bid and your quality score. This determines where your ad is placed on a page. The highest Ad Rank gets top position.

ROI – Ahhh, this one you’re familiar with, aren’t you? Return on investment is the ultimate measurement of whether your Google ad was worth running. If your paid advertising is successful, your ROI will show it in the form of those qualified leads  we talked about way up at the top of this blog. You can also track data on stuff like the time of day you get the most clicks and which key phrases are getting results, helping to ensure your ads are targeted for the best possible ROI.

Now you know how to talk the talk, so it’s time to consider walking the walk. Don’t worry, we can help with that too. And guess what? When Google Adwords do their thing and we do our thing, you free up time to do your thing…and that, we’re sure you’d agree, is a beautiful thing!

Want to learn more? Take a break from your to-do’s and give us a call at 231-927-9778. Oh, and here’s a free ebook you can read, you know, when you have time.

Kelly honed her writing, editing, and management skills during her years as a writer and Associate Creative Director at Detroit area agencies. After freelancing from home so she could raise her two kids, she added internet marketing to her skill set. She also has held or currently holds such prestigious titles as Addy, Caddy, and RAC awards-winner, University of Michigan Mom, hockey mom, soccer mom, and other variations of Mom, and Alma College Athletic Hall of Famer in track and cross-country.

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