Showing posts with label Terminology. Show all posts
Showing posts with label Terminology. Show all posts

Friday, July 28, 2017

Google AdWords Terminology - How to Speak "Pay-Per-Click"

Google AdWords Terminology - How to Speak "Pay-Per-Click"

There are many terms that will be completely foreign to any and all newcomers. Understanding the terms, numbers...aka metrics will allow you to look even deeper into each campaign you have running. The purpose of this article is to help you understand the information you see at the campaign level. Evaluating your metrics at the campaign level is considered to be the most broad overview of your AdWords performance.


When you are looking at your account (and you see all of the names of your campaigns running down the left hand side of the page), you will see the titles to each row at the top of the page. The first step is to understand what these rows represent. Once you understand what each row stands for, you will then be able to analyze the numbers associated with each of these metrics. So, lets get started on defining what all of these terms mean.


Budget: each campaign that you run will require you to set a daily budget. Determine how much money you are willing to spend each day on each campaign. That is your "budget". This is a great way to protect yourself from overspending. Google will run your ads until you reached your desired daily budget, and once this number is met your ads will no long be displayed until the next day.


Clicks: this metric identifies how many people actually click on your ad when it is displayed. Another way to look at it is how many website visitors you are gaining through Google AdWords.


Impressions (Impr.): impressions represent the number of times your ad is displayed. This number will help you understand the popularity of your keywords. If you have a lot of impressions, that means there are a lot of people searching the terms you have bid on. Many people use the word "traffic" and "impressions" interchangeably. (TIP: If you have a lot of impressions but not many clicks, you need to change your ad copy. Clearly your ad isn't captivating enough to entice people to click on it).


Average CPC: this stands for average "cost per click". This is the average amount you are spending each time someone clicks on your ad. Often times, your average cost per click will be less than your "maximum bid price". If you decided that you want to reduce your average cost per click, you will need to adjust your maximum bid price.


Cost: this metric describes how much you have spent on the campaign you are viewing. This metric is produced by taking the number of clicks and multiplying it by the average cost per click. For example, lets say you have a campaign that has 20 clicks at an average of .25 cents a click, your "cost" will be $ 5.00


Average Position: this metric explains where your ad is displaying on the page. Generally the number displayed for average position will be in decimal form. For example, you may have an average position of 2.8 this means your ad is being displayed in position 2 some of the time and position 3 some of the time, but more often in position 3. Position 1 represents the first ad on the page...the one at the very top...the #1 position, which is most likely the most expensive position. If you find that your average position is bigger, lets say your average position is 47.1, that would indicate you are the 47th ad. If you have your ads running on the Search network that would mean your ad is displaying on the 4th page of Google, the 7th advertisement down on the 4th page. So, if that is the case, you probably are not getting many impressions and even fewer clicks. As you may know or not know very few people even click to see the second page of a Google search, let alone the 4th page.


Conversions (Conv.): a conversion occurs when someone clicks on your ad and continues to take action that you the advertiser decided is valuable. This might mean a sale or it may mean that your visitor filled out an opt-in box on your landing page. What ever action the advertiser deems as valuable.


Cost/Conversion: the cost per conversion indicates how much you are paying for each individual conversion. This number is generated by the total cost divided by the number of conversions. For many people, this is synonymous with cost per lead. For example if your "cost" on Campaign #1 is $ 30.00 and you have 5 conversions, your cost per conversion would be $ 6.00. You should always have an idea of what you would like to spend or what your budget will allow you to spend per conversion or per lead.


Conversion Rate: conversion rate is the percentage of people who click on your ad that actually turn into a conversion. Again, a "conversion" might mean that someone filled out an opt-in box or maybe for you it means a purchase (see "conversions" above). Conversion Rate is influenced by your ad quality, efficiency of your keywords, and the quality of your landing page. If you decided to "trick" people into clicking your ad I can guarantee your conversion rate will be very low, because your visitors are landing on a page that doesn't really match the ad and your visitor (that you just paid for) will end up clicking back to find what they were really looking for. Tip: don't trick people into clicking on your ad, all you are doing is throwing money away. You want to find qualified buyers that are looking for what you have to offer.


Google AdWords does a great job of providing support through the help tab if you need additional information or explanation. Be sure to take the time to use the help tool provided. With this tool, you know you are getting the facts and the source is credible. Don't overlook the power of this information and insight.


As I always say about Google Pay Per Click, take the time to educate yourself and be patient. It will take some time to iron out the wrinkles. Just know, when you maser this skill you will be on your way to "printing" money for your business. Are you willing to fight through the pain to reach the sweet success?



Brian and Krysti Horwitz are professional Internet Marketers that coach hungry entrepreneurs how to use free and paid advertising online to seriously profit in business. They are the authors and creators of BulletProof Marketing, a “must-have” lead generation training tool for any network marketer, home business owner or entrepreneur. Gain access to their Free training right here: BulletProof Marketing




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