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.