Understanding Pay-per-Click Terms From AdWords

Google AdWords is one of the three largest providers of pay-per-click advertising services. The other two programs are Yahoo! Search Marketing and Microsoft adCenter. Many experts treat Google AdWords as the leader of internet marketing. Though the concept of PPC advertising is pretty simple, it is still useful to get familiar with basic terms used in Google AdWords in order to properly use this powerful instrument of internet marketing.

 

Click, also known as a clickthrough, refers to the situation, when a web site visitor clicks the displayed ad. After such click this visitor is redirected to the advertised web site, and an advertiser is charged for the amount of money specified as cost per click.

 

Impressions or number of impressions – this is a commonly used term, which shows how many times a particular ad has been displayed in Google network (search results, affiliate web site, etc.)

 

Keyword – keywords are used to link a particular advertisement with the targeted audience. The ads are displayed when a user enters search string which matches the particular keyword specified by an advertiser. Keywords are also used to display the ads on the relevant web sites. For example, if you would like to advertise your car repair service in Arizona, you may choose “car repair service Arizona” as the keyword. In this case everyone, who will try to google “car repair service in Arizona” will see your ad next to the organic search results. Besides, your ad will be also displayed on the affiliate sites with the content relevant to car repair service in Arizona.

 

 

Relevance – by Google definition, relevance shows the level of usefulness of the advertised information to users. In other words, relevance means the quality of an ad. Google tries to make ads relevance as high as possible so, showing people only those ads which match their searching criteria. The higher the relevance is or the closer the displayed ad is to a particular search string – the more chances exist for users to click such ads.

 

Quality score – this is the measurement for the relevance of an ad, keyword, or a webpage. The quality score is based on a wide variety of factors, but the general rule says that advertisers should try to achieve maximum possible quality score, since this will ensure low cost-per-click value and displaying of the ads only to the targeted audience.

 

Display URL – when you create an advertising campaign in Adwords, you have to specify two URL addresses for your ad. The first one is called display URL and this is the one, which users will see in your ad online. Usually this is the home page or the domain name of the site, for example, www.ajiboye.com

 

Destination URL or landing page – this is a second type of URL addresses for an ad. Destination URL is not displayed to users, but it is the one, which users will visit when they click a particular ad. This can be the address of a particular service you would like to advertise, for example, http://www.ajiboye.com/SPT-590-256-design011-Internet_Marketing.asd.

 

Daily budget – this is the amount of money you are ready to spend on your internet marketing each day. One can specify this amount in AdWords and the ads will be displayed as long as the daily budget allows.

 

Maximum Cost-per-Click – this is the highest amount of money you are ready to pay for a click on your ad. Here it is important to mention that AdWords can automatically reduce the maximum CPC. For example, if you set your max. CPC for 0.20 USD, but the cost of a click on a particular webpage is 0.10 USD, AdWords will reduces your maximum value to 0.11 USD to ensure displaying of the ad on a particular webpage while keeping advertiser’s expenses as low as possible.

 

Maximum CPM – this term refers to “maximum cost-per-thousand impressions”. It shows the highest amount of money you are ready to pay for 1000 times your ad is displayed.