Key Terms For AdWords Beginners

If you're just getting started with AdWords, then there is a lot of industry jargon that can be very confusing.

However, to understand all of the training material there is about AdWords and create a successful account, it's important you know what everything means.  

So, in this post, we're going to be talking about key terms you should know.  

Let's dig-in:

• Search Network -- Google AdWords doesn't just allow you to advertise on Google.com.  But, they also have partnerships with other search engines, such AOL.com and ASK.com.  You can choose to get your ads on partner sites or only on Google.

• Content Network -- Google also has another network that reaches across the Internet.  You can place your ads on thousands of targeted sites that show Google ads.  Google pays these site owners a small cut of revenue from each click generated on their sites.

• Campaign -- You can think of this as the "Top" level of your account.  Inside each account, you may have at least 2 campaigns.  You would have one for your search advertising and one for advertising on the content network.  You also may add new campaigns to promote different websites.

• Ad Group -- Under each campaign are ad groups.  The minimum number of ad groups you can have is one.  More likely, you want an ad group for each of your main keywords.  Why?  Each ad group allows you to create custom ads.  This means you can have new ads customized for each of your keywords.

• Keywords -- Under each Ad Group are your keywords.  These are the search queries you want your ads to show-up for.  Google provides a free tool located here to help you brainstorm keywords.  

• Clickthrough-rate -- This is often referred to as CTR.   It simply tells you how many folks who searched your keywords ended-up clicking on your ad.  So, if 1 out of 100 searched and clicked on your ad, then your CTR is 1%.  Clickthrough-rate is VERY important because the ads with higher-clickthrough-rates will rise to the top of the rankings for less per click than the other ads. 

• Split testing -- This refers to testing your ads to find-out which one is the most effective.  You want to have at least two ads being "Split tested" at a time in each ad group.  Over time, you find-out which ad is the most effective.  You can then delete the less effective ad, keep what works about the winning ad, but add something different you want to test in your new ad.  

• Landing page -- This is the web page each ad goes to.  It's important to work on improving this page over time for optimal results. 

• Conversion rates -- This is simply the amount of people who either fill-out a web form, buy your product, or take some type of action.  If 1 person out of 100 fills-out your web form, then your conversion rate is 1%.  Google automatically calculates this number for each of your keywords if you have installed their conversion tracking code.  You then can determine what keywords make you money and which ones are a waste.

• Relevance -- Google wants you to create ads and landing pages that are relevant to each keyword.  This simply means Google wants searchers to see your ads and landing pages and say, "This is exactly what I have been looking for!"  The simplest way to do this is to include their keywords in your ads and landing pages.

• Geotargeting -- Google allows you to tell them what locations in the world you want to be able to find your ads.  For instance, you may decide you only want searchers in New York City to be able to see your ads.  

Alright, we've now covered the most important terms.  Understanding them is a great start and will help you in your journey to creating effective AdWords campaigns.

Comments

[AdWords Split Tester]

Just to note that it is very important to know when you have enough data to stop split testing. If you split test too long, you will lose money but if you stop split testing before being absolutely sure about the winner ad, you could delete the better performing ad (and lose money). That is why you should calculate the statistical significance of your data – of course, by using some tool like AdWords Intelligence (http://www.adwordsintelligence.com/features/split_tester.shtml).