Online Advertising Glossary

Interested in PPC marketing and/or search engine optimization (SEO) for your business? If you are new to this exciting and profitable industry, you will need to get familiar with the key terminology before you begin. Below is an alphabetized glossary of commonly used terms used in pay-per-click (PPC) marketing and SEO:

Ad Group: Groups of similarly themed keywords that make up a pay per click campaign.

Ad Rank: Position in which relevant text ad results appear on paid search or content pages. Ad rank is determined by bid and quality score.

Ad Relevance: How relevant your ad text is to a user keyword query and landing page.

AdWords: Google’s PPC advertising interface, which consists of both beginner and advanced programs used by PPC management companies.

AdSense: Google’s advertising program for web publishers, delivering relevant AdWords ads to their visitors.

Bid: The amount advertisers pay for a chance to appear in search and content ad text results alongside organic search.

Broad Match: The default keyword matching option, ads appear for search queries with any combination of the keyword.

Campaign: Groups of like themed ad groups.

Click-Through-Rate (CTR): The percentage of clicks relative to impressions for an ad or keyword.

Content Network: A network of search engine partners where advertisers can choose to show ads relative to context, theme, or traffic of site content

Conversion: A conversion occurs when a prospective customer takes the PPC marketer’s intended action (i.e. buy a product, sign up for a newsletter, provide personal information, etc.)

Conversion Rate: A statistic indicating the percentage of conversions relative to the number of clicks.

Copy: Ad or website content or text.

Cost-Per-Acquisition (CPA): The amount paid for a conversion or lead.

Cost-Per-Click (CPC): The amount paid for a click; usually, this amount is less than the actual keyword bid.

Destination URL: The URL of the landing page to which users are directed.

Display URL: The URL displayed in your text ad.

Domain Name: The unique name that identifies an Internet site.

Exact Match: A keyword matching option, where ads are only shown for search queries that are exactly the same as the keyword. Exact match is indicated by rectangular brackets.

Geo-Targeting: Targeting ads by location, from national to local levels.

Impression: When an ad is displayed in search results or on a website in the content network, regardless of whether it is clicked.

Invalid Clicks: Repeated clicks, either performed manually or by automated clicking tools or other deceptive software. Google Adwords does not charge for clicks generated by prohibited means.

Keyword: A search query; words users use to search for a product or service.

Keyword Insertion: A method of using a modification tag, which allows for keywords to be dynamically inserted into ad title or text.

Keyword Matching: A method for refining ad targeting. Google Adwords offers three matching options: broad match, phrase match, and exact match.

Landing Page: The webpage users are directed to when an ad is clicked, it should be specifically related to the search query.

Maximum Cost-Per-Click (Max CPC): The most a PPC advertiser wishes to pay for a user’s click on an ad.

Minimum Bid: The minimum payment required for an ad to be displayed in search or on the content network.

Negative Keyword: Keywords used to exclude irrelevant search traffic and accruing unnecessary costs. Negative keywords are indicated with a minus symbol.

Optimization: The methods used to achieve optimal account performance, including bid adjustment, keyword expansion, text ad testing, and refined geo-targeting.

Organic Search: Search results determined purely by keyword relevance, rather than payment.

Pay-Per-Click (PPC): Commission structure where the advertiser pays search engines a fee for every unique visitor that is referred to the merchant site.

Phrase Match: A keyword matching option where ads are only shown for search queries containing the keyword in a specific order. Phrase match keywords are indicated by quotation marks.

Quality Score (QS): A performance estimate of the quality of your ads, keywords and landing pages. Ads, keywords and landing pages with higher quality scores can lead to lower PPC marketing spend and better ad positions.

Return on Advertising Spend (ROAS): A metric calculated by dividing the revenue generated from an ad campaign, by the cost of that campaign.

Return on Investment (ROI): The cost of advertising compared to the profit generated from conversions. ROI is calculated using the following formula (RevenueCost)/Cost.

Search Engine: A co-ordinated set of programs that searches an index and returns organic and advertisement matches to a specified keyword

Search Engine Marketing (SEM): Methods used for marketing a website on the various search engines, by purchasing placement through PPC or Ad Space.

Search Engine Optimization (SEO):The process used to improve a website’s page rank and position on Organic search results.

Search Query: The words entered by a user when performing a search.

Text Ad: A brief call to action copy that links to a specified landing page, which appears when a keyword matches a search query.

Tracking URLs: Keyword URLs with an additional argument used to gather data such as user search query, geographic location of click, and conversion results from an individual keyword.

Uniform Resource Locator (URL): An internet address, including domain name, used to direct users to a specific landing page.

Interested in PPC marketing?  Contact us today to discuss how we can help your business succeed!

Sami Lipman