ABCs of AdWords – Learning The Language
Whether you’re new to AdWords or are considering becoming an AdWords advertiser, the ABCs of AdWords will help your put it all together.
ABCs of AdWords – A Working Definition
Like pretty much anything else, internet advertising has a language all its own. To make the most out of Google AdWords, you’ll want to have a working definition of some major terms.
This isn’t meant to be a definitive Internet advertising glossary of the terms and ideas you’ll want to know when using AdWords. It will however, help you get started with the basics.
ABCs of AdWords – The Nuts and Bolts
So for starters, let’s begin with the mechanics of AdWords, with the parts that make up your account.
Ad – At its most basic level, your AdWords account is made up of ads. These can be textual, display ads, mobile ads, video ads, and others. Each one will advertise one of your products or services in a specific way. You create your ads and decide when and where you want them to appear.
Ad Group – The next level in your account refers, to several ads clumped together into a common group. Organizing your ads this way allows for more streamlined management.
Campaign – Finally, multiple Ad Groups together make up an AdWords campaign. The general rule of thumb is that you should create a separate campaign for each of your business’ marketing objectives. You might have one campaign dedicated to increasing sales and another to raising brand awareness, for example. Because these different objectives require unique planning and bidding strategies, splitting them into separate campaigns is the best way to achieve both.
ABCs of AdWords – Running a Campaign
Next, let’s go over some of the terms you’ll encounter in the midst of running your campaigns.
Keywords – Keywords are the “triggers”, words and phrases, which let Google know when your ads might be relevant to a user’s search. If a user’s search terms match or are similar to your ad’s designated keywords, there is a chance your ad will show.
Organic vs Paid Search Results – Following a successful Google search, a user is presented with two sets of results. At the top of the page are “paid” results, comprised of ads submitted by AdWords advertisers. An ad’s position in the paid results is called Ad Rank and is decided by an ad’s Quality Score and CPC Bid in the Ad Auction. More on these terms in a bit.
Organic Search Results are comprised of the websites and pages which best fit the user’s search query. Contrary to popular belief, you cannot pay to have your page or link appear higher in the organic search results.
Ad Auction – The “ad auction” determines the order in which ads appear in the paid results of a Google search. At the auction, advertisers use their set CPC (cost-per-click) bids to decide which among them is willing to pay the most for a higher ad placement. If your ad beats out a competitor’s, you only pay a penny more than the next advertiser’s bid.
Quality Score – An ad’s quality score is the other way that an ad can receive a higher Ad Rank than spending more per bid. Quality score is decided by how relevant your ad is for the keywords you have chosen as well as how effective you have made the ad’s landing page. Google wants to ensure the best experience possible for its users. So quality score is a win-win for both Google and for you, the advertiser!
Impression – An impression is when your ad is shown as the result of a google search. The amount of times a user has clicked on your ad, divided by your number of impressions is called CTR or “click-through rate”.
Click – Simply enough, a click is when someone clicks on your ad and goes to the ad’s landing page. At this point, the advertiser is charged by Google for that click.
Conversion – If the user that clicked on your ad ended up doing something valuable to your business, such as making a purchase or signing up for a newsletter you’re promoting, this action is referred to as a “conversion.” They are the ultimate end goal in most AdWords objectives.
Congratulations! By reading this you’re already a bit more aware of the terms and concepts you’ll need to be a successful internet advertiser. Good luck! Happy Marketing!
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