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Glossary of PPC Terms

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Glossary of PPC Terms

  Sam Carr       Feb 10, 2017    

  Back to Digital Advertising
Whether you’re new to this area or you've been running paid ads for a while, PPC terms and jargon can be difficult to understand sometimes. To help you make sense of the industry's terminology, we’ve decided to compile a comprehensive list of some of the most commonly used terms you may - and probably will - come across when running PPC campaigns.

Ad copy: Refers to the main text of a clickable advertisement, whether it is a contextual or a pay-per-click ad.

Ad extensions: This is an ad feature which allows extra information to be added, for example contact details, reviews, and so on.

Ad group: A set of related ads and keywords organised by a common theme, mostly on a particular service or product range.

Ad rank: A value that decides the position and location of your ad on a page. It is calculated using the Quality Score and the bid amount.

Ad scheduling: This allows you to set time slots when your advert will be shown during the day.

AdWords:  A program which enables businesses to set a budget for advertising and only pay when people click the ads.

AdWords editor: A free downloadable application that allows you to add new campaigns/ad groups/keywords or to make bid changes (among other things), without them going live until you're ready.

Average position: The average position where your ad is displayed in search results.

Bid: The maximum price an advertiser is willing to pay for someone clicking on an advert for a given keyword.

Bounce rate: Expressed as a percentage, bounce rate is the number of people who visit a site and then leave straight away without visiting any other pages.

Broad match: Includes variations of the term as well as misspellings and synonyms.

Broad match modifier: This is more refined than broad match and will only trigger for that term or close variants.

Budget: The maximum amount that you have available (and are willing to pay) per account, per day.

Campaign: A set of ad groups that are grouped to share a budget and various other settings.

Clicks: The number of occasions where a user has clicked on an ad.

Click fraud: Any click that is made on a PPC ad with malicious intent.

Conversion rate: The measure of the number of clicks divided by the number of conversions. This shows how many people who are clicking on your ad are going on to complete your desired action.

Conversions: A conversion is when a user completes a desired action which can be anything from a paid transaction to the submission of an enquiry form.

CPC (cost-per-click): Gives the cost of each click as a result of a pay-per-click (PPC) ad campaign, usually expressed as an average of the total spend.

CPM (cost per impressions): Gives the cost (usually per thousand) of the impressions/page views of a web page that shows an ad.

CTR (click-through-rate): The percentage of viewers on a web page who click a link (usually search engine listings or ads).

Daily budget: Your daily budget is what you’re willing to spend per day per ad.

Default max CPC: The most that you’re willing to pay for a click.

Display network: Allows you drive targeted adverts to relevant users across relevant websites.

Exact match: Only shows your ad when the exact term is entered by a user.

Geo-targeting: A feature which allows you to target your audience by location - for example, a 20-mile radius from your business' location.

Impression: The number of times an ad has been displayed.

Keyword planner: Formerly known as the Keyword Tool, it is used to identify relevant keywords and phrases to target.

Keywords: A list of words and/or phrases related to the products or services that your business is trying to promote.

Landing page: The web page you specify for users to arrive on after clicking on your ad.

Long tail keywords: A keyword consisting of multiple words, which is often more relevant to a user’s search term. A large percentage of all searches are long tail searches.

Match type: Match types allow you to define which search terms will trigger your ad.

Negative keywords: These are specific phrases or words that you add to a campaign so that your ads won’t be displayed if a user’s search term includes one of those particular keywords.

Phrase match: Are close variations of the phrase, such as additional words before or after it.

PPC: Pay Per Click – a form of advertising where the advertiser pays for each click through to their website, usually as a result of a bid they make.

PPM (Pay per Impression): a form of advertising where the advertiser pays for impressions (or page views) of the page which shows their ad.

Quality Score: This is the ad provider's rating of the quality and relevance of your keywords, landing pages and PPC campaigns. A better quality score would get you more ad clicks at lower costs.

Remarketing: A feature that allows you to show your ads on the ad provider's display network to people who have previously visited your website, so you can encourage them to return.

Search network: A group of web page results related to a term searched by a user, where your ads can appear.

Search partners: Sites that you can choose to display your ads on within the ad provider search network, for example YouTube.

Split testing: A classic method of testing an ad to determine the effectiveness of a PPC ad. It compares two versions of an ad that are identical, except for one or more specific differences in wording or images.

Of course, if you have any questions or think we missed something important, let us know in the comments section below and we'll do our best to help!

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