Pay-per-click (PPC) advertising is a cornerstone of digital marketing, offering businesses a powerful way to reach their target audience and drive measurable results. Understanding the language of PPC is crucial for optimizing campaigns and achieving business goals. This comprehensive glossary provides definitions for key terms in paid search advertising, equipping you with the knowledge to navigate and leverage this powerful marketing channel effectively.

Ad Copy

Text that appears in your PPC advertisements is referred to as ad copy. It includes the headline, description, and display URL. Effective ad copy is essential for generating clicks and conversions.

Ad Delivery

Ad Delivery describes the technique and speed with which your adverts are displayed to viewers based on your budget and targeting preferences.

Ad Extensions

Ad Extensions are additional pieces of information that can be added to your ad, such as phone numbers, site links, or location details. They enhance the visibility and effectiveness of your ads by providing more information to users.

Ad Group

An Ad Group is a container for your ads and keywords within a campaign. Organizing ads into ad groups allows for better targeting and management of your PPC campaigns.

API (Application Programming Interface)

An API is a collection of protocols that allow different software programs to communicate with one another. In PPC, APIs enable integration with ad platforms for advanced reporting and management.

Ad Position

Ad Position refers to the position of your ad on the search engine results page. A lower number corresponds to a higher location, such as the top of the page.

Ad Rank

Search engines utilize Ad Rank to determine where your ad will appear on the search engine results page (SERP). It is determined by your bid price, the quality of your ad, and the anticipated impact of extensions and other ad formats.

Ad Relevance

Ad Relevance assesses how well your ad matches the intent of a user’s search query. High ad relevancy improves ad performance and quality rating.

Ad Scheduling

Ad scheduling lets you control whenever your advertisements show by defining specified times and days.

AdSense

AdSense is a Google initiative that enables publishers to monetize their websites by displaying advertisements from the Google ad network.

AdWords

AdWords (formerly Google Ads) is Google’s advertising tool that enables businesses to generate and manage PPC ads across its search and display networks.

Automatic Placement

Automatic Placement is the automatic placement of adverts on appropriate websites within a network, as decided by the ad platform’s algorithm using targeting parameters.

Auto Tagging

Auto Tagging is a program that adds a unique tracking parameter (GCLID) to your ad URLs, allowing you to measure the performance of your PPC campaigns in Google Analytics.

Ad API (Application Programming Interface)

The Ad API allows developers to interface with ad platforms programmatically, enabling complete management and reporting features.

For example, use the Google Ads API to automate campaign administration and generate detailed performance metrics.

Bid

A bid is the highest price you’re willing to spend for a click on your ad. In PPC advertising, bids can be set manually or automated using bid strategies to control your ad spend.

Bid Adjustment

Bid Adjustment allows you to increase or decrease your bids based on specific criteria, such as device type, location, or time of day. It helps optimize ad performance by targeting different audience segments.

Bid Management

Bid management is the process of setting and altering bids for keywords in order to improve ad effectiveness and control advertising expenses.

Example: adjusting bids for high-performing keywords to increase ad visibility and conversions.

Broad Match

Broad Match is a keyword match type that enables your ads to show searches that contain variants of your keyword, including synonyms, related searches, and other relevant terms. It provides the widest reach but can also result in less targeted traffic.

Bid Optimization

Bid optimization is the process of modifying bids based on performance data to improve results and return on investment (ROI).

Example: Increase bids for high-converting keywords to boost ad positioning and lower cost per acquisition (CPA).

Bounce Rate

Bounce Rate is the percentage of visitors that leave a website after reading only one page. A high bounce rate may suggest that the landing page isn’t compelling or relevant.

Call Extensions

Call Extensions allow you to include a phone number in your advertisements, allowing visitors to call right from the search results.

Callout Extensions

Callout Extensions are additional lines of text added to ads to highlight unique selling points or features of your business.

Callout Only Campaign

A Callout Only Campaign is a type of campaign that only uses callout extensions to provide additional information in ads without driving users to a landing page.

Campaign

In a PPC account, a campaign is the highest level of organization. It contains one or more ad groups and allows you to set overall budget and targeting options for your ads.

Click Fraud

Click Fraud occurs when competitors or malicious users click on your ads with the intent to deplete your ad budget or skew analytics.

Click-Through Rate (CTR)

The Click-Through Rate (CTR) represents the percentage of users who click on your ad after viewing it. It is determined by dividing the number of clicks by the number of impressions and multiplying by 100. A higher CTR shows that your ad is relevant and engaging for users.

Cost Per Acquisition (CPA)

Cost Per Acquisition (CPA) is the average cost of acquiring a customer through a sponsored search campaign. It is computed by dividing the campaign’s total cost by the number of conversions. CPA measures the profitability of your advertising spend. 

Cost Per Click (CPC)

The cost per click (CPC) is the fee you pay for each click on your advertisement. It is an important measure in measuring the cost-effectiveness of your PPC marketing. CPCs might vary depending on competition, keyword quality, and other reasons.

Cost Per Mille (CPM)

The Cost Per Mille (CPM) is the cost of acquiring 1,000 impressions of your ad. It is widely used in display advertising to calculate the cost of ad presence rather than clicks.

Conversion

A conversion is a completed action that you define as valuable, such as a purchase, sign-up, or download. Tracking conversions allows you to assess the usefulness of your PPC advertising in accomplishing your business objectives.

Conversion Rate

The conversion rate is the percentage of users that take a desired action after clicking on your ad. Divide the number of conversions by the number of clicks, then multiply by 100, to calculate conversion rate.

Conversion Tracking

Conversion tracking is the process of analyzing the actions that users take after connecting with your ad. It gives information about the effectiveness of your adverts and aids in determining return on investment (ROI).

Daily Budget

Daily Budget is the maximum amount you are willing to spend on a PPC campaign each day.

Destination URL

Destination URL is the web address where users are directed after clicking on your ad. It must be related to the ad content and optimized for conversions.

Dynamic Keyword Insertion (DKI)

Dynamic Keyword Insertion automatically updates your ad text to include the search term used by the user, making the ad more relevant.

Display Campaign

Display Campaigns are ads that appear on websites within Google’s Display Network, including banners, images, and video ads.

Display Network

The Display Network is a group of websites and platforms where display ads can appear, including Google’s partner sites and apps.

Dynamic Search Ads (DSA)

Dynamic Search Ads (DSAs) are adverts that generate ad headlines and landing pages based on the information on your website. They are useful for covering a broad range of search queries without the need to create specific keywords.

Frequency Capping

Frequency Capping limits the number of times an individual user sees your ad within a specific timeframe, preventing ad fatigue.

For example, setting a frequency cap of three times per week ensures that the ad is only shown to the same person three times per week, avoiding overexposure caused by high frequency.

GCLID (Google Click Identifier)

When a person clicks on a Google ad, a unique identifier called GCLID is automatically attached to the URL. It is used for tracking and reporting.

Geo-Targeting

With geo-targeting, you may target advertisements to consumers according to where they are in the world. This helps ensure that your ads reach the right audience in specific locations, improving relevance and effectiveness.

Hits

Hits are the total number of requests for files on a website, including page loads, graphics, and scripts. In web analytics, hits represent a broad measure of website activity.

Impression

An Impression is counted each time your ad is displayed on a search engine results page. It helps measure the visibility of your ad but does not necessarily indicate user engagement.

Impression Share

Impression Share is the percentage of total impressions your ad received compared to the total number of impressions it was eligible for. It helps assess how well your ads are performing in relation to available search traffic.

Example: If an ad appeared 1,000 times out of 2,000 possible opportunities, their impression share would be 50%.

Keywords

Keywords are precise words or phrases that consumers type into search engines when looking for information, products, or services. Keywords are important in digital marketing since they assist target the proper audience when creating content and running PPC advertisements.

Short Tail Keywords

Head keywords, also known as short tail keywords, are general search queries that often comprise one or two words. They are more competitive, receive a large number of queries, but are often less exact.

Long Tail Keywords

Long tail keywords are more precise search terms that typically contain three or more words. They typically have smaller search volumes but are more targeted, drawing users with a specific aim. These keywords are frequently easier to rank for and can result in higher conversion rates due to their specificity.

Keyword Match Types

Keyword Match Types determine how closely a search query must match your keywords for your ad to appear. The main types are:

Broad Match:

Broad match is the default keyword match type in PPC advertising that allows your ads to be shown on searches that include variations of your keyword, such as synonyms, related searches, and other relevant variations. It casts the widest net, potentially capturing a large audience, but it may also result in your ads appearing for less relevant searches.

How it’s written: No special symbols are used. Simply write the keyword as it is.

Phrase Match: 

Phrase match allows your ad to be shown when a user searches for your keyword in the exact order you specify, but it can also include additional words before or after the phrase. This type provides a balance between broad match and exact match, allowing some flexibility while still maintaining keyword relevance.

How it’s written: Quotation marks are used around the keyword.

Exact Match: 

Exact match is a keyword match type that ensures your ad will only be shown to users who type in the exact keyword or very close variants of it. This offers more control over who sees your ad, typically leading to higher relevance and conversion rates.

How it’s written: Square brackets are used around the keyword.

Negative Match: 

Negative match keywords prevent your ad from being shown on searches that contain the specific keywords you specify. This helps you filter out traffic that is unlikely to convert, saving your budget for more relevant searches.

How it’s written: A minus sign is placed before the keyword.

KPI (Key Performance Indicator)

KPIs are metrics that measure the success of a PPC campaign. Key performance indicators (KPIs) include click-through rate (CTR), conversion rate, and return on ad spend (ROAS).

Landing Page

A Landing Page is the web page where users are directed after clicking on your ad. It should be relevant to the ad content and designed to encourage conversions by providing a clear call to action and a seamless user experience.

Negative Keywords

Negative keywords are terms that you don’t want to appear in your adverts. By using negative keywords, you can prevent your ads from appearing in irrelevant searches and improve the quality of your traffic.

PLA (Product Listing Ads)

PLAs are ads that showcase individual products with images, prices, and other details, appearing on search engine results pages and shopping platforms.

Placement Exclusion

Placement Exclusion allows you to prevent your ads from appearing on specific websites or placements within a network to avoid irrelevant or low-quality traffic.

PPC (Pay-Per-Click)

PPC (Pay-Per-Click) is a sort of online advertising in which advertisers pay a fee for each click on their ad. It is commonly used in search engine advertising and includes various bidding strategies and ad formats.

Quality Score

A statistic used by Google advertising to determine the relevance and quality of your keywords, advertisements, and landing pages. It is scored on a scale of 1 to 10, with 10 being the greatest, and it affects both ad placement and cost per click (CPC).

Remarketing

Remarketing refers to the targeting of people who have previously interacted or engaged with your website or adverts. It enables you to re-engage with potential clients who did not convert during their first visit.

Return on Ad Spend (ROAS)

The Return on Ad Spend (ROAS) metric calculates the revenue gained for every dollar spent on advertising. It is calculated by dividing the total revenue by the total ad spend and is a key metric for evaluating ad performance.

ROI (Return on Investment)

ROI measures the profitability of an investment by comparing the gain or loss to the cost. It is computed by subtracting the cost from the revenue and then dividing by the cost.

Search Engine Results Page (SERP)

A Search Engine Results Page (SERP) is the page that a search engine displays in response to a user’s query. It consists of organic search results, PPC advertisements, and additional aspects like local listings and featured snippets.

Search Query

A Search Query is the exact term or phrase that a user types into a search engine. Understanding search queries helps you optimize your keywords and ad targeting.

Smart Campaign

Smart Campaigns are automated ad campaigns that use machine learning to optimize targeting, bidding, and ad creation for small businesses.

SQR (Search Query Report)

SQR is a report that shows the actual search terms users used to trigger your ads, helping you refine keyword targeting and improve ad relevance.

Example: Reviewing an SQR to identify irrelevant search queries and add negative keywords to improve ad targeting.

SV (Search Volume)

The number of searches for a single term or phrase over time is referred to as search volume.

Ad Copy Testing (A/B Testing)

Ad Copy Testing, or A/B Testing, involves creating multiple versions of an ad copy to determine which version performs best. This helps optimize ad effectiveness and improve overall campaign performance.

Understanding the essential phrases and concepts is critical when entering the dynamic world of PPC advertising in order to optimize your campaigns and achieve your marketing goals. This glossary has given you a great foundation for making informed judgments and efficiently managing your paid search efforts. 

Inciterz specializes in assisting businesses in realizing the full potential of PPC advertising, providing specialized solutions that deliver results. Whether you want to improve your current strategy or start from scratch, our expertise can guide you every step of the way. Contact Inciterz to enhance your PPC campaigns and achieve the success your business deserves.