How To Understand Google Adwords

Adwords spelt out in Scrabble tiles.

 

 

 

 

 

 


If you’ve been tasked with managing your business’ Google Adwords Account, you’ve probably discovered by now that it’s no easy feat. In order for your ads to perform well, you need to be able to understand the dashboard. Here is a break down of what the acronyms and terms that appear on it mean, as well as tips to improve your ads’ performance.

Keywords – These are the words or phrases that someone searches in the Google search bar. You bid on keywords so your company can show up at the top of the results.

Clicks – This one is pretty obvious. Clicks represents the amount of times your ad was clicked on. Having a high amount of clicks is always a good thing. After conversion, clicks are the second most important way people should be interacting with your ads. Google Adwords counts clicks even when users don’t go to your website so this may be why your amount of website visitors are different than your clicks.

Impressions – Impressions are the amount of times your ad appeared. While a high volume of impressions may sound impressive, what matters most in terms of an ad’s performance is how many people click on your ads and engage with them.

Impression Share – Impression share regards to how many times your ad is shown against other competitors for the same keyword in search ads. If you have an impression share of 20%, that means you are only showing 2 out of the 10 times that search query happened. Healthy impression shares range from 60-80%.

CTR (click-through rate) – CTR is the number of clicks your ad receives divided by the number of times your ad is shown.

Average CPC (cost-per-click) – Average CPC is the average amount you’ve been charged for a click on your ad. The amount is calculated by dividing the total cost of your clicks by the total number of clicks.

Average Position – This is in relation to the position of your ad and where it is shown in a Google search. Generally, 1-8 lands your ad on the first page of search results, 9-16 lands on the second page of Google search results, and so on. Average positions can be between two whole numbers. For example, an average position of “1.7” means your ad usually appears between positions 1 or 2. Generally speaking, if you are running a Google display campaign, you will always be 1 because there are no “ad positions”. A good average position is generally between 2 – 3.5 since you are at the top but not paying too much to be the first ad showing.

Search Query – This is almost the same as keyword, but there are some differences. It is the actual words someone typed into Google. We could be bidding on the keyword “business start-up” and a search query such as “how to start up a business” would trigger our ads since it contains those keywords.

PPC (pay per click) – The type of advertising when you pay only when your ad is clicked.

Cost Cost deals with how much was spent on the campaign. Remember, you only spend money on your ads when people click on them. You can use Google Adwords Industry Benchmark to find out if what your spending is lower or higher than the average in your industry.

Max CPC – The Max CPC is the highest amount you’re willing to pay for somebody to click on your ad. So if you set a maximum bid of $1.50, you’ll never pay more than $1.50 for each click on your ad. The more money you put down on your Max CPC, the higher positioning your ad will have on a page.

Remarketing – This is another type of display but much more targeted. We track users who visit your site and then show them display ads across the Internet after they leave, enticing those to visit your site and convert.

Search Engine Results Page (SERP) – The pages that appears after someone requests a search from a search engine.

Conversions – Conversions represent how many responded to your ad after clicking on it. Conversions deal with actions and can mean many things. A conversion can be somebody viewing the video you published on the page, a person filling out the contact form on the landing page, a person buying the product advertised, etc.

Cost Per Conversion – Cost/Conversion is the average cost per conversion. This is calculated by dividing the total cost for clicks by the number of conversions. Knowing your Cost Per Conversion is important as it can help you divet up your budget better.  

Conversion Rate – Conversion rates deal with how often cicks resulted in conversions. Some ways you can improve your conversion rate are by switching up your offer, doing A/B testing on your ads, reevaluating your copy so it accurately depicts what you’re offering, and redesigning your landing page.

Want to learn more about Adwords? Call Sperling Interactive to uncover more about Adwords and how we can help you.