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Glossary of PPC Terminology

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Ad Copy
The headline, descriptive text and display URL used to form an advert to persuade people to visit your site that is displayed on the results page of a search engine.

Ad GroupAn ad group is a collection of keywords paired with specific adverts for that group. You are allowed multiple ad groups per campaign.

Ad Scheduling
Ad scheduling allows you to set time slots when your advert will be shown during the day. With ad scheduling, a campaign can run all day, every day, or as little as 15 minutes per week. This allows your adverts to receive the most valuable traffic when it is available to you, and conserve your budget when traffic is slower.

Bid Price
The maximum amount of money you are willing to pay for your search keywords.

Broad Match
A broad match keyword would be triggered for a search that contains the initial keyword and also for associated searches.
For example: the broad match keyword of 'red shirt' would be triggered by searches for 'red shirts', 'find red shirt', 'red and blue shirts' and 'shop that sells red shirts' etc. A broad match is written literally with no added punctuation.

Click Through Rate (CTR)
Click through rate is the number of clicks your advert receives divided by the number of times your ad is shown. A keyword's CTR is a strong indicator of its relevance to the user and the overall success of the keyword.

The amount of times somebody clicks through to your site via your ad. It is determined by dividing the amount of conversations by the amount of clicks.

Conversion Rate
The conversion rate is the number of conversions divided by the number of ad clicks. A conversion is when a visitor interacts with your site, whether it is by purchasing or inquiring, as a result of clicking on your ad.

Cost Per Click (CPC)
The amount of money you end up paying for someone clicking through from an ad displayed for one of your search terms (this depends on competition, CTR and Quality Score).

Daily Budget
You can set the maximum amount of money you are willing to spend on your ad campaign each day by defining a limit, known as the daily budget. When your budget limit is reached, your ad will stop showing.

Exact Matching
If you choose your keyword to be for exact match only, it will only appear when a user searches for the exact keyword.For example: the exact match keyword 'water bottle' will only appear for searches of 'water bottle' exactly. No additional words like 'clear water bottle', or plurals like 'water bottles' are allowed. An exact match is written inside square brackets so the search engine can determine the type of search it is.

Geographical/Location Targeting
Search engines will let you choose the areas of the country to advertise to which will have most relevance to the requirement of your product/service. You can also expand this to whole countries themselves, as well as certain languages.

The amount of times your advertisement comes up in response to a specific search term.

The word or phrase somebody searches for that you bid on. By creating relevant keywords, your ads will only appear to the more interested customers, who are most likely to purchase from you. Therefore increasing your conversion rate, lowing your CPC, and raising your ad position.

Landing page
The specific web page a visitor gets when they click on your ad.

Negative Keywords
Specific keywords used to stop the appearance of non-relevant searches so your ad doesn't appear and therefore lose you money.

Phrase Match
Phrase matching stops your advert appearing when the user has added additional words in their search, but allows searches that contain terms before and after the phrase to be triggered.
For example: the phrase match keyword of 'LCD TV' would appear for searches of 'cheap LCD TV' or 'LCD TV delivered'. However, a search for 'LCD black TV' would not trigger the phrase match keyword because it does not match exactly the whole phrased keyword of 'LCD TV'. A phrase match is written inside quotation marks so the search engine can determine the type of search it is.

Your rank amongst the paid listings on a search engine's results page. Positioning is dependent on the quality score of your adverting. The higher your quality score, the higher the ranking of your adverts.

Quality Score
This is the ranking method used on the Google Adwords system. It is based on your adverts CPC, CTR and relevancy. The higher a keyword's Quality Score, the lower its minimum bid and the better its ad position.

Your reach is the total number of unique users who will see your advert over a given period of time. It determines the presence and online exposure your ad will get.

The relevancy of your search term/advert/landing page to what someone is actually looking for. Relevancy is reflected by a keyword's quality score