A Brief AdWords Glossary

Google AdWords is rich in jargon and insider language. You may find that it’s helpful to have a ready list of common AdWords terms at your fingertips.

The following list details some of the more common confusing AdWords terms:

• Ad position: The placement of an ad on the Google search results pages. Position #1 is at the top of the first page.

• Bid price: The maximum amount of money an advertiser is willing to pay for a click from a given keyword.

• Call to action: Directions within an ad or a Web page for the reader to take an action.

• Conversion: A desirable action by a Web site visitor, including joining a mailing list, buying a product, calling a phone number, or downloading a file.

• CPC (cost per click): The amount an advertiser is charged for a single click. Different keywords cost different amounts, depending on competition.

• CTR (click-through rate): The number of clicks an ad receives divided by the number of impressions. The higher the CTR, the more effective Google considers the ad.

• Impression: The display of an ad on a Web page.

• Landing page: The first Web page shown after an ad is clicked. The page is constructed to appeal to the same desire as the ad.

• PPC (pay per click): The advertising model that charges advertisers only when their specific ads are clicked.

• Split test: Test that divides online traffic randomly between two or more creative approaches (ad, Web site, e-mail, and so on) and measures which one generates more conversions.

• Traffic: The number of visitors to your Web site.

• Visitor value: How much money, on average, a single visitor to your Web site is worth.