Glossary of PPC terms

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Ad extensions: Ad extensions are extra information about your business, such as your local address, phone number, and even coupons or additional websites. They’re what shows up in blue below your ad descriptions. Please refer to the screenshot for example.


Keyword bids: A bid represents the amount of money you are willing to spend for a single click on a given keyword in Google Ads. Those bids will dictate where your ads show up in search results.

Impressions: Impressions are the number of times your ads are displayed. This helps you understand how often your ad is being seen.

Impression share: Impression share is the percentage of impressions that your ads receive compared to the total number of impressions that your ads could get.

CTR: Click-through rate (CTR) measures how oCen people click your ad after it's shown to them, which can help you understand the effectiveness of your ad.

Clicks: number of times someone clicks your ads.
Conversions: This is when a user performs some specified action after clicking your ads, such as purchasing a product, calling the business, submitting a contact form, etc.

Conversion rate: The average number of conversions per ad interaction, shown as a percentage. This is calculated by simply taking the number of conversions and dividing that by the number of total ad interactions.

Cost per conversion: This is the average cost of a conversion. It’s the total cost divided by the conversions.

CPC: Cost Per Click (CPC) is the amount that you've paid for each click

Average CPC: Average Cost Per Click is the average amount that you've been charged for a click on your ad.

CPM: Cost-Per-thousand impressions (CPM) is a bidding method that bases your costs on how many times your ads are shown (impressions). This is more relevant for display campaigns.

Display campaigns: image ads, displayed on different websites that are a part of the Google Display Network (or other ad distribution networks). They come in various sizes, and can be static or animated. Please refer to the screenshot for an example display ad.

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Remarketing campaigns: Google Ads remarketing campaign is a type of ad that show the ads to users who have already visited the website. Past visitors will see these ads while they are browsing the web, watching YouTube videos or reading news sites, for example.

Ad position: This is the order of your ad in the auction results as compared to other ads. For example, an ad position of "1" means an ad was the first ad shown, with no other ads ahead of it.

Landing Page: Specified by the destination URL in your ads, this is the webpage where customers end up after they click your ad.

Geotargeting: It is also called as ‘Location Targeting’. This is a campaign setting that allows us to specify the ci/es, countries etc. where your ads will be served.

Quality Score: It is a complex formula used by Google that takes factors including CTR, and landing page quality into account in order to decide whether your keywords are relevant to your ads and landing page.

Return on Ad Spend (ROAS): Ratio of revenue generated or lost n an investment relative to the amount of advertising cost invested.

Search Query: A basic search query is what the user enters when searching on Google. If their search includes the keywords that you are bidding on, your ad will appear (depending on match types and all of the other targe/ng options, of course).