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Learn about Adwords in Minutes


Become A Pro in Google Adwords by learning it in just couple of minutes. Things You should Know Before Setting up Your Adwords Account.

Google AdWords Common Terms

Campaign – An ad campaign on Google AdWords is made up of your ad groups, and has the same budget, campaign type and your other ad settings. It’s generally what you first set-up when you advertise, and it helps you organize your different paid advertising efforts. You can run multiple campaigns at any time from your Google account.

Ad groups – An ad group is your set of keywords, budgets and targeting methods for a particular objective, within the same campaign. For example, if you are running an ad campaign for a shoe sale, you could set up ad groups to target for online sales, women’s shoes and men’s shoes. You can have multiple ads in each ad group.

Campaign Type – Your campaign type is where you want your ads to be seen. Google has:

  • Search Network only” which is shown on Google search engine result page  only)
  • Display Network only” which means your ad shows up in Google’s Display network of websites, videos, YouTube, Blogger sites.
  • Search Network with Display Select” which is a combo of search and display.
  • Shopping Ads or often called as Product Listing Ads” which is used by e-commerce sites to showcase        their product at top of SERP but in order to create it you must have Google Merchant Center account.
  • Universal App Ads” which means your app advertisement are shown on google owned Android platform    devices or you can use Admob.
  • Video Ads” which means your video ads are shown on world’s second largest search engine i.e. YouTube.

A Brief Comparison Between Different Campaign


Keywords – Keywords are very important in your Google Ads. They are the words or word phrases you choose for your ads, and will help to determine where and when your ad will appear. Firstly Keywords are triggered and then your ads are shown up to best match and your bid.  When choosing your keywords, think like your customer and what they would be searching for when they want your product, service or offer. Though you can include as many as you like, I suggest a maximum of twenty keywords.

Here’s Google’s explanation on how to build the best keyword list:

Quality Score – A quality score is the measurement from Google based on the relevancy of your ad headline, description, keywords and destination URL to your potential customer seeing your ad. It is used by google to determine your cost per click (CPC) and multiplied by your maximum bid to determine your ad rank in the ad auction process. A higher Quality Score can get you better ad placement and can lower your costs.

Impressions – An impression is the measurement of how many times your ad is shown.

Ad Rank – Your Ad Rank is the value that’s used to determine where your ad shows up on a page. It’s based on your Quality Score and your bid amount.

Ad extensions – Ad extensions are extra information about your business, such as your local address, phone number, and even coupons or additional websites. They’re what shows up in below your ad descriptions. Few common used Ad Extensions are- Site Link, Call, Structured Snippet, Callout, Location Extension.

General Adwords Terms

Call to Action (CTA) – A CTA is literally the action you want your searcher to take. Good CTAs in your ads are short, action oriented words such as “Buy”, “Get”, “Act Now”, etc.

Click Through Rate (CTR) – Your CTR is an important metric in your account settings. It measures how many people who have seen your ad click through to your link destination.  CTR is calculated by  the number of clicks that your ad receives divided by the number of times your ad is shown

CTR= clicks ÷ impressions

Landing Page – Your landing page is the page on your website to which you’re driving traffic from your ad. You must have a decent Landing Page as it is important factor in gaining the quality score.

Optimization – Optimization in Google AdWords is like optimization elsewhere in marketing. It means making the changes in your ad that get you higher results for your objectives.

Split Testing – Split testing includes A/B and multivariate testing. It’s a method of controlled marketing experiments with the goal being to improve your objective results (such as higher CTR’s, increased conversion or even better Ad Ranking).

Cost Related Adwords Terms

Bid Strategy – Your bid strategy is basically how you set your bid type to pay for viewer interaction with your ads.

Daily budget – Your daily budget is what you’re willing to spend per day per ad.  Your daily cost is based on a daily average per month, so don’t be alarmed if yours varies from day to day.

CPC – Cost-Per-Click is the most common bid type on Google AdWords. It means you pay every time a person actually clicks on your ad. You set your “maximum CPC” in the bidding process, which means that dollar amount is the most you’ll pay for a click on your ad.

The basic CPC calculation is:

AdRank of Advertiser Below You/Your Quality Score + $0.01 = Your CPC

 CPM – Cost-Per-thousand impressions is a bidding method that bases your costs on how many times your ads are shown (impressions). The amount paid per impression is calculated by dividing the CPM by 1000. For example, a $10 CPM equals $.01 per impression.

$10 CPM / 1000 impressions = $.01 per impression

Billing Threshold – Your billing threshold is the level of spending that triggers a charge to you for the ad costs. It applies to automatic payments, and the threshold level starts at $50. It you reach that within 30 days, you’ll be billed, and your threshold then raises to $100 and so on.

Learn more about Google AdWords billing.

Ad Creative Terms

Headline – Your ad headline is the header of your ad copy.  It generally shows up in blue when your ad is live.

Destination URL – Your destination URL is the landing page your ad is directed to when it’s clicked. Your destination site can be a specific page. You can change it for differing ads within ad groups. Your audience does not see it in the ad.

Display URL – Your display URL is what shows up in your ad copy. You can keep this simple and clean to increase your brand recognition, trust, and conversions


There you have it – all the basic knowledge you need to get started with Google AdWords. You can now talk like a pro! It wasn’t that hard, right?

If you want to know even more terminology, check out Google’s own AdWords Glossary.

To learn more about Google AdWords strategies, check out Why Does My Small Business Need Google Adwords? Any Feedback or Question are most welcomed just drop it in the comment box below


Daksh is a qualified Google AdWords Professional. He has been the spear head for many successful Search Marketing Campaigns and currently oversees Paid Marketing operations of “Digital Marketing Handler”