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lindagray

Google Ads Terms to Know 1

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These common terms will help you set up, manage, and optimize your Google Ads. Some of these are specific to Google Ads, while others are related to PPC in general. Either way, you’ll need to know these to run an effective ad campaign.

AdRank

Your AdRank determines your ad placement. The higher the value, the better you’ll rank, the more eyes will fall on your ad, and the higher the probability that users will click your ad. Your AdRank is determined by your maximum bid multiplied by your Quality Score.

Bidding

Google Ads is based on a bidding system, where you as the advertiser selects a maximum bid amount you’re willing to pay for a click on your ad. The higher your bid, the better your placement. You have three options for bidding: CPC, CPM, or CPE.

  • CPC, or cost-per-click, is the amount you pay for each click on your ad.
  • CPM, or cost per mille, is the amount you pay for one thousand ad impressions, that is when your ad is shown to a thousand people.
  • CPE, or cost per engagement, is the amount you pay when someone takes a predetermined action with your ad.

And, yes, we’ll review bidding strategies below.

Campaign Type

Before you begin a paid campaign on Google Ads, you’ll select between one of three campaign types: search, display, or video.

  • Search ads are text ads that are displayed among search results on a Google results page.
  • Display ads are typically image-based and are shown on web pages within the Google Display Network.
  • Video ads are between six and 15 seconds and appear on YouTube.

Click-Through Rate (CTR)

Your CTR is the number of clicks you get on your ad as a proportion of the number of views your ad gets. A higher CTR indicates a quality ad that matches search intent and targets relevant keywords.

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