PPC Glossary

Keyword Phrases:

Match Types:

  • Broad Matching: In AdWords this is the default matching option. When applied, broad matching allows your ad to be displayed if a search utilizes your keywords in any order as well as with other search terms. For example, if your keywords are adopt, puppies and Phoenix, a search containing the phrase “Phoenix puppies adopt” or “adopt puppies Phoenix” could potentially yield your ad when broad match is applied.
  • Phrase Matching: By contrast phrase match may allow your ad to show only when your exact keyword, or your keyword with added words in front of it, is searched. The ad may also be displayed if variations of your keyword is searched (this includes single and plural forms, misspellings, abbreviations and acronyms). Given our previous keywords of adopt, puppies and Phoenix, to isolate these terms in a phrase match search, simply enclose the words you would like matched in quotation marks (“puppies adopt Phoenix”) or (“adopt Phoenix”). Your ads now may appear if the following example is searched: “Beagle puppies Phoenix” or “puppy adoption Phoenix.”
  • Exact Matching: The most targeted approach is exact matching. When applied your ads may only appear if your exact keyword is searched, without any other phrases within the search. Like phrase matching, the ad could also be displayed if variations of your keyword are searched (single and plural forms, misspellings, abbreviations and acronyms). Unlike phrase match, however, your ad will not be displayed if any additional words are added before your keyword. To apply exact match surround your keyword with brackets, for example [adopt puppies Phoenix]. Your ads may appear if the following is searched: “pupy Phoenix adopt” (note the misspelling variant). It will not show however if the following is searched: “cute puppies Phoenix.”
  • Negative Match: While ensuring your ad reaches the maximum target audience possible is paramount, it is equally important to filter out terms that are irrelevant to your search in an effort to weed out unwanted clicks and boost CTR and ultimately ROI. To apply negative match simply isolate the keyword(s) you would not like to be displayed in your search and add the minus prefix in front of the word. Again, harkening back to our chosen keywords, if our ad seeks to promote puppy adoptions in the Phoenix area, it would be wise to filter out cats and kittens (adopt -kittens, adopt-cats).

ROI: Return on investment reflects the cost of the marketing campaign relative to the profit generated. Essentially it is the monetary end result of your money, expertise and time spent on a campaign.

Target Market: The core group of customers a business has selected as the aim of a marketing campaign. Selecting a target market is the crucial first step in executing a successful advertising campaign and can be broken down into four segments:

  • Geographic: Addresses, region, climate.
  • Demographic/Socioeconomic: Income, age, gender, occupation, education.
  • Psychographic: Opinions, lifestyles, ideals.
  • Behavioral: Degrees of loyalty.

Conversion Rate: The number of visitors who turn content views or website views into an anticipated action (purchasing an item, signing up for a newsletter, entering their email address). If the desired action is acquiring visitor emails, the equation can be broken down into the following equation:

Conversion Rate= number of emails (desired action)/visits to the website or landing page

If your ad receives 100 clicks and five email subscriptions, you have a conversion rate of five percent. Since high percentages can be the sign of a successful campaign, it is important to maximize your conversion rate; this can be achieved in a number of ways. One of which, as discussed previously, entails knowing your target audience and tailoring your ad and its keyphrasing to what suits their likes. Likewise, eliminating keyphrases that are not conducive to what your ad is promoting is an important tool to safeguard against visitors who may be drawn to an ad under a false impression, thus perhaps leading to a high amount of clicks but low conversion rate.

Impressions: The tracking of how many times a webpage or element of a webpage, such as an advertisement, is viewed by a site’s visitor. This number is generated by the amount of times the particular page is loaded. Depending on where the ad is located on a page (vertically, horizontally), the impression can be an estimate of the amount of people a particular ad is reaching. Essentially, it is a good tool in determining whether ads are being viewed or not.

Clicks: The process of clicking an online advertisement and being led to the advertiser’s desired destination (website, landing page). Monitoring “clickthrough” is a way to determine the effectiveness of a given ad. Monitoring clicks relative to conversions may give the advertisers an idea of the success of the ad.

Click Through Rate (CTR): Another way of determining the success of a campaign, the click through rate can be determined by the number of clicks on an ad divided by the number of times the ad is shown (impressions).

CTR=Number of ad clicks/impressions

In each AdWords account every individual ad and keyword has its own CTR; this way implementing dual campaigns can increase the effectiveness of a campaign. By monitoring the CTR one can isolate successful keywords and narrow it down to one or two highly targeted, successful ads rather than four or more moderately successful ads.

Daily Budget: An average daily allotment per campaign to be spent daily. Based on the budget set, AdWords will aim to show your ad with as much frequency as possible until the budget goal is met.

Bid: PPC bids reflect the dollar amount set aside to pay per visitor click. This allotment can vary and is contingent on factors such as the campaign budget and keywords utilized.  The more in demand your keywords are from competing advertisers, the higher your bid must be to ensure an ad receives a place of prominence amongst a sea of others competing for ad space. Unlike organic search results, PPC bids fund the advertisements displayed on the top or side of a search engine’s (Google, for example) page.

Average CPC: The average cost-per-click displays the amount the advertiser has been charged for each ad click. Like CTR and conversion rate, the average CPC can be determined with a simple equation:

Average CPC=cost of clicks/total number of clicks

Average Position:  This tool reflects the rank of your ad in relation to competing ads in the order of which they appear. On the scale of prominence, number one reflects the highest position and while there is no last place position, typically only eight ads may run on the first page at a time. Suffice to say, the closer to the coveted number one spot, the better for your ad. Achieving a spot on page one of the search engine page can be done in a multitude of ways, including increasing the PPC bid as mentioned previously to maintain ad rank amongst targeted keywords and steep competition.

Geographic Targeting: A setting of AdWords that allows advertisers to target a campaign to a core audience via a specific location such as a continent, state or province, city, specific neighborhood within a city, or even specific address. As mentioned in target marketing, such a tool is instrumental in defining and directly advertising to a specific audience. 

Organic Search Results:  Contrary to PPC advertisements displayed on the top and side of a search engine page, organic search results refer to the listings that appear not as a result of being paid for, but for their relevance to the search term entered. While organic ranking cannot be bought like a PPC campaign can, a high ranking is not completely out of the question and if attained, typically comes with a higher conversion rate. To prevent your site from becoming buried under the competition, it is crucial to ensure the content of your pages are rich with keywords that are highly relevant to your site.