AdWords Glossary

Google Adwords Glossary

API, CPC, Max CPC, CTR, Guttulus… what does it all mean? I created this handy glossary to alleviate the confusion. Feel free to download, change, alter, and use.


Adgroup: Ad groups are how Adwords accounts are organized. Ad groups include a set of keywords, a default bid, and some creative bits. Ad groups should each have a specific theme. This will make it easier to find and organize them.

Ad Rank: This is your ranking for in the Adword auction. Ad Rank= f(quality score, Max CPC bid).

Adsense: Members are part of the Google Display Network.

API: Application Programming Interface. Developers use APIs to build applications that interact with programs such as Adwords.

Adwords: Name of Google’s advertising Platform.

Automatic Placement: Your ad will be placed on the Google Display Network if Google identifies via contextual targeting it is proper.

Avg. CPC: Average Cost Per Click is what you paid each time someone clicks on your ad.

Bounce Rate: Percentage of single page visits.

Broad Match Keyword: Default keyword match type which triggers ads on keywords and variations of it.

CTR: Clickthrough Rate is the clicks an ad receives divided by the number of impressions. An important factor in how Google Calculates Quality Score.

Conversion: Set by the advertiser. The advertiser can establish a desired action. When the desired action is completed, it’s a conversion.

CPC: Cost Per Click. Advertisers pay only for clicks.

Cost Per Conversion: Total cost divided by conversions.

CPA Bidding: Cost per Acquisition bidding.

CPM Bidding: Cost per Thousand impressions.

CID: Customer ID is the 10 digit number attached to each Adwords account. Its located at the top right corner of an Adwords account.

Exact Match Keyword: Match type restricting the delivery of an ad to at search query matching the keyword exactly.

First Page Bid Estimate: Estimate of how much an advertiser would need to bid to be on the first page of Google’s search results.

GA: Google Analytics is a free program that shows activity on the site.

GDN: Google Display Network allows ads to show on websites.

Guttulus: A cat from South America which was recently discovered.

Impression: Number of times an ad is displayed.

Keyword: A word or phrase that triggers an ad.

Landing Page: What the searcher sees after clicking on an Adword ad.

Match Type: How closely a search must match the keyword to trigger the ad.

Max CPC: Maximum Cost Per Click is the highest amount you will spend to buy one click.

Metric: Performance evaluator.

MCC: My Client Center is an umbrella account to manage multiple Adwords accounts.

Negative Keyword: Prevents ads from appearing.

PPC: Pay Per Click is a pricing model.

Phrase Match Keyword: Match restricting delivery of an ad unless it matches a keyword exactly, but allows for additional words before and after the keyword.

Quality Score: Dynamic variable that determines ad rank and actual cost per click.

ROI: Return on Investment indicates the value gained compared to the advertising cost.



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