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Google Ads Glossary

Find all the Google Ads terms explained in our glossary!

What is the difference between CTR and CPC? Does the campaign destination address have to match the one that is displayed to users? Is campaign group a synonym to campaign? Check in our Google Ads glossary!

Ad – can be shown on the top of or next to the search results and on the partner sites. Google Ads allows users to create text ads, image ads (in several formats), video ads and ads designed for mobile devices.

Ad group – ads related by topic that share a common keyword list. Google Ads allows you to create up to 2000 ad groups within a single campaign.

Campaign – gathers ads, ad groups, and keywords that share geo-targeting options, budget, settings, etc. One account can set up to 100 campaigns.

Click – an action that transfers the user to the destination website as an effect of clicking at the ad.

Clickthrough rate (CTR) – the ratio of the number of times the ad is shown (impressions) to the number of clicks on it expressed as a percentage. If the ad was displayed 100 times and 3 people clicked on it, then CTR equals 3%.

Conversion – an interaction with the ad that ends with a specific action. It can be signing to the newsletter, downloading an offer, filling in a form, buying a product etc. Conversion should be adjusted to the goals of the campaign – e.g. in the case of a campaign aimed at increasing sales, the conversion will be closing the transaction.

Cost-per-click (CPC) – the amount you pay for each click on the ad (not just showing it!). CPC may decrease or increase over the course of the campaign depending on the circumstances.

Final URL – an address of a page or subpage that the user clicking on the ad lands on. The domain of the final URL must be the same as the domain of the display URL to avoid confusing the users.

Display URL – an address of a page or subpage that is shown in the ad. It can differ from the final URL, but must be set within the same domain.

Impression – a single broadcast of the advertisement to a potential customer. A campaign with an empty budget will not be displayed.

Keyword list – a list of words or phrases that when typed, cause the ad to appear to a user (ad matching the query).

Quality Score – an indicator showing to what extent the ad and the keyword are matched to the queries of people looking for services and products that your business offers. The quality Score is measured on a 1-10 scale. The higher the Quality Score, the better –  a high Quality Score means lower costs of the campaign.

Reports that show Google Ads campaign results also contain the following entries:

Orders – in the case of campaigns conducted with VCM / VCM24 platform, the order contains settings (budget, strategy, settlement period, number of campaigns carried out within one order).

Order cost – total expenditure on advertising activities (campaign budget + commission for conducting).

Revenue – The amount of revenue that is measured using Google Analytics (by transaction value). Campaign revenue parameter applies to online stores.

Impression share – determines the percentage of inquiries our ad responds to, taking into account the budget (if the impression share is less than 60%, then the budget should be increased).

Cost – the expenses of the campaign over a given period of time.

ROAS (Return on Ad Spend) – This parameter represents the return on ad spend and determines how many times the turnover is bigger than the cost.ROAS formula: income / costs * 100 (you can also encounter an algorithm that does not take into account the multiplication by 100).

Audyt Google Ads

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Author of the article

Dominika, currently Content Marketing Manager, joined Verseo immediately after getting a degree in project management and digital marketing. She is one of those lucky people who are passionate about what they do. Marketing and modern technologies are not only her job, but also her interests. Domi is one of those great people to meet, offering a wealth of imagination, painstaking diligence and spring openness. Extremely competent when it comes to LinkedIn, content building and lectures on healthy diet.

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