Abbreviations
CPC – cost per click
CPT – cost per thousand
CTR – click through rate
ROI – return on investment
Maximum CPC – maximum cost-per-click
SEO – search engine optimization
Glossary
Keyword – a word you create for the advertising group to target your ads to potential costumers.
Daily budget – amount of money you are ready to spend for the specific AdWords campaign.
Display URL – the address of your website that is shown in an AdWords ad, however, it is not necessarily the same as the destination URL.
Destination URL – the landing page in your website that your visitors are directed to when they click on the ad.
Google AdWords – Google's advertising program based on pay-per-click ads.
Google Analytics – Google's web application to monitor visitor flow.
Google content network – Hundreds of thousands of high quality websites, newspapers and internet magazines that cooperate with Google to include targeted AdWords ads.
Google search network is a large number of websites as well as email applications and blogs, who have partnered with Google. Advertisers have the option of placing their ads on Google as well as the Google Network for no extra cost. Ads are placed to be as relevant to user searches as possible.
Position preference – advertisers have an option to choose their preferred positions among other ads, i.e., only be the first or be in positions 1-3 but not lower, etc.
Ad Campaign is the unit used to structure the ads for products or services that you want to promote. You can set a daily budget, audience targeting by language, country or territory, starting or ending dates, etc. for each ad campaign. Every ad campaign can contain multiple ad groups.
Contextual advertising – advertising based on the content of the website where ads are shown. The ads are displayed only when site content is relevant to specific ad keywords.
Quality Score – a dynamic variable calculated for every keyword. It has an effect on advert position in Google and on the minimum cost per click.
It is calculated from:
Average click-through rate in Google pages (CTR);
relevance of the keyword to the ads;
quality of landing page;
account history (all the account ad and keyword CTR);
historical CTR of the display URLs in the ad group;
and other relevance factors.
Maximum cost-per-click – the highest amount that the advertiser is ready to pay for each click. The advertiser can set a maximum CPC for every keyword.
Minimum CPC – a minimum cost-per-click is assigned to each keyword in the advertiser's account according to its quality score.
CPC – cost-per-click – the amount that the advertisers pay every time when a visitor clicks on their ads.
Return on investment (ROI) - the ratio of the cost of advertising relative to the profit generated from conversions such as sales or leads. You can calculate ROI by taking your total Revenue, subtracting advertising costs and dividing by total advertising costs (Revenue - Cost)/Cost).
PPC advertising – online advertising when advertisers pay for visitors based on cost per click. Advertisers only pay when search engines users actually click on ads and visit the advertisers’ website. An advantage of this type of advertising is that ads can be displayed many times, but advertisers pay only for the real visitors that may be their potential clients.
Conversion - the event on your website initiated by the visitor, e.g., buying something or requesting more information.
SEO – website optimization for search engines with the purpose is to improve the ranking and increase the number of visitors from search engines. Because of these optimizations the website is easier to find in search engines when looking for specific keywords or phrases.
Average click-through rate - the number of clicks your ad receives divided by the number of times your ad is shown (impressions). Both ads and keywords each have their own CTRs. E.g., if your ad has 100 impressions and 7 clicks, its click-through rate is 7% (7/100).
Meta Description – one or two sentences that are embedded in the HTML code and describe the website that helps the search engine to provide a description for the site.
Meta Keywords – keywords or phrases of keywords that are separated by commas and are linked to page content. Keywords are embedded in the HTML code.
Meta Tag – a HTML tag that is embedded in your website's HTML code and describes the content of the page. Meta tags help search engines index the site.
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