THE ABC'S OF PPC ADVERTISING

Ad group: An ad group contains one or more ads that share similar targets. Each of your campaigns is made up
of one or more ad groups.

Ad Rank: A value that determines your ad position in the search results. Calculated using your bid, ad quality (including expected CTR, relevance, and landing page experience), and context of the search.

Algorithm: A set of rules to be followed by a computer in calculations.

Attribution: How much credit an ad interaction gets for a conversion.

Automated bidding: A solution that helps advertisers automatically set bids based on performance goals.

Average CPA: The cost of all your conversions (cost divided by total conversions).

Bounce Rate: The percentage of visitors who land on your page and leave without taking any further action.

Broad Match: A keyword match type that allows your ad to show for searches that include misspellings, synonyms, related searches, and other relevant variations.

CPA: Cost-per-action, calculated as total cost divided by total conversions.

CPC: Cost-per-click, calculated as total cost divided by total clicks.

CTA: Call to Action, a phrase that encourages the user to take a desired action, such as “Buy Now” or “Contact Us.”

CTR: Click-Through Rate, the percentage of people who click on your ad after seeing it. Calculated as clicks divided by impressions.

Conversion: An action that’s counted when someone interacts with your ad or free product listing and then
takes an action that you’ve defined as valuable to your business.

Conversion value: The values you assign to certain actions that matter to your business, for example $5 for calls
and $20 for sign-ups.

Data-driven attribution (DDA): Gives credit for conversions based on how people engage with your various ads
and decide to become your customers. It uses data from your account to determine which keywords, ads,
and campaigns have the greatest impact on your business goals.

Display Network: A group of websites, apps, and videos where Google Ads can appear, outside of Google Search, including YouTube and Gmail.

Exact Match: A keyword match type that only shows your ad when the exact keyword or close variant is searched.

Impression: The number of times your ad is shown on a search result page or another site in the Google Network.

Impression Share: The percentage of total impressions your ad receives compared to the total number of impressions it was eligible for.

Keyword: Words or phrases used to match your ads with the terms people are searching for.

Landing Page: The web page where users land after clicking your ad. The quality and relevance of this page influence Quality Score.

Machine learning: A system that trains a predictive model from input data.

Margin for error: An amount that is given in case of mistakes.

Marginal CPA: The cost of additional conversions, calculated as cost divided by increase in conversions.

Marginal ROAS: The additional return you get for additional spend, calculated as increase in conversion value
divided by increase in spend.

Negative Keyword: A keyword that prevents your ad from showing on searches containing that term. Helps refine traffic quality.

PPC: Pay-Per-Click, a form of advertising where you pay each time someone clicks your ad. Google Ads is a PPC platform.

Portfolio bid strategy: An automated, goal-driven bid strategy that groups together multiple campaigns,
ad groups, and keywords.

Quality Score: A metric from 1–10 based on your ad’s expected CTR, ad relevance, and landing page experience. Higher scores can reduce CPC and improve ad rank.

ROAS: Return on ad spend, calculated as total conversion value divided by total spend.

ROI: Return on investment, calculated as total profit divided by total spend.

Search auction: The process that happens with each Google search to decide which ads will appear for that specific
search and in which order those ads will show on the page (or whether or not any ads will show at all).

Search query: The word or set of words one enters when searching on Google.com or one of our Search Network sites.

Search signals: Attributes or context about a search query.

Target CPA: An automated bidding strategy that aims to get as many conversions as possible at your target cost per action.

Target ROAS: An automated bidding strategy that aims to achieve as much conversion value as possible at your target return on ad spend.

UTM Parameters: Tags added to a URL to track performance in analytics platforms like Google Analytics.