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Definition of ‘AdWords’
Definition: Google AdWords is one of the services advertisers use for online promotion of their content, brand, website, etc through certain defined keywords to realize traffic or leads. it’s a sort of brief advertising copy with keywords that are displayed on Google sites and partner websites (called publishers) after matching their content with the keywords.
Description: By matching relevant advertising content to the content on a publisher page, AdWords presents an efficient way for an advertiser to extend traffic on their website without having to get advertising inventory on other sites. Advertisers usually buy a click generated (cost per click), which is revenue to AdWords, which is shared with the publisher during a certain percentage.
This helps not only the advertiser to buy traffic which is real as AdWords employ tons of methods to detect and minimize fraud clicks, but also helps publishers monetize its content which was previously less monetized or not monetized in the least. Besides CPC (cost per click) advertising, AdWords offers CPM (cost per mile) advertising, site-targeted advertising (exclusively for text, banner, and rich media ads) and re-targeting. this sort of online advertising is often targeted local, national and international distribution. The text advertisements are generally short with 1 headline of 25 characters, 2 descriptive text lines of 35 characters each and therefore the URL with 35 characters. the foremost useful feature of Google AdWords is that it enables advertisers to focus on the location of their ads to any specific location, language, and even IP address exclusions.
The limitation to exclude IP address or the ranges of addresses is 500. Advertisers get an option of an impact panel wherein they will put keywords, domain names, topics, demographic preferences to focus on the sites of Google network for promotion. this is often referred to as Site-Targeting. Another useful feature of AdWords is re-marketing wherein it allows advertisers to point out the ads to the users who have already been to their site. In this manner the conversion rate gets high.
1 CPC: Cost-Per-Click
2 CPI: Cost-Per-Install
3 CPV: Cost-Per-View
4 CPM: Cost-Per-Mille (Mille being Latin for One Thousand)
5 CPA: Cost-Per-Action
6 CPL: Cost-Per-Leads
When choosing keywords for your AdWords campaigns different matching options are available. The two main keyword match options include the following:
Broad Match: This reaches the most users by showing your ad whenever your keyword is searched for.
Negative Match: This option prevents your ad from showing when a word or phrase you specify is searched for.
Phrase Match: Your ad is shown for searches that match the exact phrase.
Exact Match: Your ad is shown for searches that match the exact phrase exclusively.
When using AdWords keywords are also used to determine your cost of advertising. Each keyword you choose will have a cost per click (CPC) bid amount. The bids specify the maximum amount you’re willing to pay each time someone clicks your ad (the maximum cost-per-click). A higher CPC bid can allow your ad to show at a higher position on the page
Most Important KPIs for AdWords
One of the good advantages of pay-per-click advertising (PPC) is the ability to live the performance of your ad over time. Analytics tools like Google AdWords show you an entire range of various metrics, many of which are key performance indicators (KPIs) that reveal how successful your ads are.
While it’s always better to possess an excessive amount of information than insufficient, it’s best to possess the proper information. meaning determining the proper KPIs for your site, finding them in AdWords, and using them to form your PPC campaigns better. The best metrics may vary from one campaign to a different, but these AdWords KPIs are a number of the foremost useful to realize success.
Successful ads need to start by exposure to people in your audience. whenever your ad displays, it’s called an “impression.” The impressions metric isn’t necessarily a sign of how well your ad is performing, but it shows you ways many of us actually see it. And you can’t have a successful ad if nobody sees it within the first place, so you would like to observe the amount of impressions you get per day, week, or month.
2. Click-through rate
After someone sees your ad, they need a chance to click thereon. whenever they are doing, it counts as a click. and each time they don’t, it doesn’t count toward anything. The percentage of individuals who click your ads to travel to your site is named the “click-through rate” (CTR). These are the folks that your ad engaged, and a high CTR is a sign that your ad is performing exceptionally well. As you measure CTR, you’ll discover another or a call to action that’s particularly powerful. check out the ads that get the simplest CTR to work out how you’ll refine your whole strategy for more clicks. one search term outperforming
3. Conversion rate
When someone clicks on your ad, they are going to a landing page that encourages them to require a selected action that’ll help them become a paying customer. The people that follow through thereupon action contribute to your conversion rate, which may be a measurement of what percentage people click on your ads then become customers. This KPI also will offer you a thought about how good your ROI is. the higher your conversion rate, the extra money you’re making.
4. Cost per conversion
PPC advertising is exclusive due to what proportion control you’ve got over the value of advertising. you’ll always adjust your bids for each keyword counting on what proportion you’d wish to spend. Cost per conversion shows you the typical amount of cash you spend on PPC for each conversion that you simply earn. Ideally, this cost is going to be as low as possible. But not everyone converts after they click your ad, so it’s possible that this cost might be high. Still, the payoff you get from a mean conversion should be quite enough to hide the value. And if it isn’t, you would like to form some big changes to your PPC campaigns.
5. Average Position
Average position is a sign of where your ads usually fall when they’re triggered. So, if you’ve got a mean position of seven .5, you most frequently show up toward rock bottom of ad listings. If you’ve got a mean of three .2, you always show up at the highest. Your ad must place eighth or higher to urge on the primary page of ad results. Naturally, the ad that’s listed first has the simplest chance of getting the foremost clicks, but that doesn’t mean your campaign is bad if you show up less than that. In fact, you can still get enough traffic and conversions to justify your PPC campaign if your average position is seventh or eighth — you just won’t get as much traffic as first or second.
6. Quality score
Quality score is an expression of how reliable your company is in showing people relevant information. So, if someone looks up “running shoes,” then clicks your ad, but they are going to a page about dress shoes, your quality score won’t be high. However, if someone looks up “running shoes,” then clicks on your ad, and that they attend a page that sells sneakers, your quality score is going to be much higher — and you’ll probably get a replacement customer! When your quality score is high, AdWords will actually offer you a reduction on your ad costs since you’ve proven that you’re a reliable source of data for Google users. meaning your cost per conversion goes down and your ROI goes up. But when your quality score is low, you’ll actually pay more to take care of an equivalent ad positioning for keywords. Quality score is predicated on a scale of 1 to 10, and Google considers five to be average. If your quality score may be a perfect 10, you get a 50% discount on keywords compared to what you spend with a top-quality score of 5. On the flip side, if your quality score may be a one, you pay 400% more because you’ve shown Google that you’re a poor source. With that in mind, it’s critical to concentrate to your quality score — especially if you would like to save lots of money on your PPC campaigns.