Important terminology to understand google ads more clear

  • Keywords: These are words or phrases describing your products or services that you can choose to help you to determine when and where your ad can appear
  • Impressions 👀 : This is the number of people who viewed your ad.
  • Clicks 🙄: This is when someone clicks on your ad
  • Clickthrough-rate (CTR): This is the percentage of people who click your ad after seeing it. CTRs can vary by business type, but keeping yours above 1% for Search campaigns is a good goal.
    • CTR (expressed as %) = Clicks / Impressions
    • Each of your ads and keywords have their own CTRs, indicating how compelling users are finding your ads and keywords. CTR helps you gauge the success of your marketing efforts and it factors into Quality Score.
  • Cost-per-click (CPC): This is the cost for each click on your ad
  • Pay-per-click (PPC): This is an online advertising model in which advertisers pay for clicks accrued
  • Quality Score is a measure of how relevant your keywords are to your ads and to your landing pages. It is calculated at the keyword level every time someone does a search for one of your keywords, and ranges from 1 (lowest) to 10 (highest). Quality Score affects your ad position as well as how much you’ll pay for clicks. Advertisers with higher Quality Scores are rewarded with lower CPCs and better ad positions.
  • Conversion 🤑 : the ultimate goal is not simply a click, or a website visit, but a purchase, call, lead or app download. This type of action that we want website visitors to ultimately take on our website is known as a conversion.
    • Conversion rate = Conversions / Clicks x 100
  • Cost-Per-Conversion: is often referred as CPA in the PPC world. Cost-per-action (CPA) = Total Cost / Conversions

Golden rule: In the early stages of your campaign, it’s key to focus on CTR and website engagement to make sure you’re attracting the right customers to your website. 

By Google