What Are the Must-Know Google Ads Terms?

If you are an online retailer and want to propel your online presence and capture the attention of potential customers, consider using Google Ads.

According to the Google display network, 20% of businesses using Google Ads have seen an average of 15% increase in website traffic in 2023.

Moreover, the advertisement aims to increase online visibility, drive website traffic, generate leads, maximize ROI, and target specific audiences.

Google ad terms

Let us explore the 18 must-know Google ad terms.

1. Ad Extensions

Ad extensions are added at the campaign or ad group level and can appear with the main ad text when it’s eligible to be exposed.

• Advanced Targeting:  This is targeted based on elements including location, device, time of day, and target audience demographics. This allows advertisers to tailor their extensions to specific consumer segments, maximizing relevance and engagement.
• Ad Extension Performance Reporting: With Google Ads, you can access detailed metrics for each ad extension, allowing you to examine their effectiveness, as well as statistics-pushed optimization choices. Clicks, impressions, CTR, and conversion rate are at your fingertips, empowering you to track your advertising approach best.

2. Campaign

A campaign is a grouping of ad groups with a shared goal. It helps you manage and optimize your advertising efforts effectively.

Some terms related to campaigns in Google Ads are:

• Quality Score: A metric evaluating the relevance and quality of your ads, keywords, and landing pages.
• Conversion Rate: It is the percentage of clicks that bring about a conversion. It is calculated by dividing the number of conversions by several clicks and then multiplying by 100.

Some steps to manage the campaign in your Google ads are:

• Keyword Research and Selection: Use tools like Google Keyword Planner to find out key phrases with high search volume and relevance to your enterprise.
• Ad Creation and Testing: Test many variations (such as headlines, descriptions, and display URLs) to perceive the simplest messaging and calls to action.

3. Campaign Type

A campaign type is designed to help advertisers achieve specific outcomes. Here are some types of Google ads:

• Search campaigns: It displays text ads on the Google Ads result page whenever users search for keywords.
• Shopping campaigns: Promote your products by displaying them directly in Google search, including product images, prices, and other details.

4. Ad Group

An Ad Group is a subset of a campaign where you organize your ads, keywords, and targets. The term helps you improve ad performance and increase the relevance of your advertising messages to your audience.

According to WordStream, studies suggest ad groups with tightly related keywords can achieve 5-15% higher CTRs than broader groups.

Ad groups include ads, keywords, bids, targeting settings, and ad extensions.

5. Ad Rank

The ad rank is used by Google Ads to decide the placement of paid advertisements on search engine results pages (SERPs).

• Second-price auction: This is used when you need to beat the second-highest bidder.
• Quality Score: This metric reflects the combined impact of your ad relevance, expected click-through rate, and landing page experience on your Ad Rank.
• Rank math: This aims to optimize their bids and improve the quality of their ads and landing pages to achieve higher Ad Rankings

6. Daily Budget

It refers to the maximum amount of money you’re willing to spend on a particular campaign each day. Moreover, once your campaign reaches its daily budget limit, Google will stop showing your ads for the rest of the day.

A 2020 study by iProspect discovered that campaigns with Daily Budgets achieve a 10% better click-through rate charge (CTR) in comparison to campaigns without them.

7. Bid Strategy

This method suggests how much you’re willing to pay according to the pay-per-click rate. The Google algorithm helps you achieve your target according to the bid selection.

Here are some bid strategies available in Google Ads:

1. Manual CPC (Cost-Per-Click): This helps you set your maximum CPC bids, giving you control over your bids through ongoing monitoring and adjustment.
2. Automated Bid Strategies: Use AI to set bids. This also includes

• Smart Bidding
• Maximize Conversions
• Target CPA
• Target ROAS
• TCPM (Target Cost-Per-Mille)
• Maximize Clicks

8. Keywords

Choose relevant keywords related to your products or services to get the best result. Also, use tools like Google keyword finder or third-party tool Semrush to find accurate keywords that users are searching for.

Types of keywords in Google Ads:

• Broad Match: Include misspellings, synonyms, related searches, and other relevant variations.
• Phrase Match: Searches that match a phrase, or close variations of that phrase.
• Negative Keywords: This helps to prevent irrelevant traffic and ensure that ads are shown to relevant users.

9. Quality Score

This measures the relevance and quality of your ads, keywords, and landing pages. Also, it determines your ad rank and the cost-per-click (CPC) you pay in Google Ads auctions.

The Quality Score is influenced by several factors:

• Ad Relevance: Google will see if your keywords match your target or not.
• Ad Format: Different ad formats (text, image, video) impact a Quality Score of Google prioritizes user engagement. Ads that enhance user experience contribute to higher Quality Scores.

10. Destination URL

It is also known as the Final URL and is the specific webpage a user lands on after clicking your ad. The process is optimized to improve the user experience, increase conversions, and enhance overall campaign performance.

According to the Google Index result, the destination URL has helped 13% of users find the relevant site according to their relevance.

Consider these points for destination URLs:

• Tracking Parameters: It helps to track various metrics like clicks, conversions, and campaign performance accurately.
• URL Redirects: This can be implemented for various reasons, such as tracking purposes, A/B testing, or to ensure users land on the correct page

11. Display URL

• Domain Verification: This can be used by various methods, such as adding a meta tag to the website’s homepage or uploading an HTML file to the website’s server. As a result, it helps to ensure the legitimacy of the Display URL.
• Path Customization: This allows the inclusion of relevant keywords or descriptions to provide additional context to users.

12. CTA (Call To Action)

Call To Action helps users choose the desired outcomes, such as purchasing, signing up for a newsletter, downloading an app, or contacting the advertiser.

• Clear and Compelling Text: Should have clear and compelling text such as Buy Now,” “Sign Up Today,” “Learn More, etc.
• Button Design: Design elements by using factors such as size, color, shape, and contrast.

13. Headline

It is the title or main text at the top of an ad. Also, it is the most prominent and attention-grabbing element of Google ads.

1. Character Limit: The limit should be up to 30 characters, making the heading look attractive and attention-grabbing. Make sure to consider these:

• Ad Platform Specifications
• Concise Messaging
• Prioritizing Keywords
• Creative Adaptation

2. Localization: Translating headlines accurately and adapting them to cultural nuances can improve ad relevance and user engagement.

14. CVR (Conversion Rate)

It measures the share of users who complete a favored action (a conversion) out of the total number of users.

• Calculation: It is calculated by dividing the number of conversions with the help of the overall range of interactions and then multiplying by 100. The formulation is CVR = (Conversions / Total Interactions) * 100%.
• Benchmarking and Comparison: Comparing CVR over time and against benchmarks facilitates advertisers to track progress and make data-driven decisions for performance optimization.

Related: E-Commerce CRO: Ecommerce Conversion Rate Optimization Tips

15. CPC (Cost Per Click)

The method represents the cost an advertiser pays each time a user clicks on their ad.

• Performance Evaluation: It is a key performance indicator (KPI) used to evaluate the efficiency and effectiveness of advertising campaigns.
• Keyword Selection and Match Types: By using relevant keywords and phrases, you can control the rate of the CPC, allowing you to attract customers easily.

16. CPM (Cost Per Thousand)

It is the model where advertisers pay for every 1,000 impressions (views) of their ad.

• Viewability Measurement: It refers to the percentage of the view impression by the users for the site. Moreover, it includes browser-based measurement, ad verification services, and industry-standard systems.
• Frequency Capping: It allows advertisers to limit the number of times a user sees the same ad within a specific period. It helps to prevent ad fatigue, improves the user experience, and others.

17. CTR (Click Through Rate)

The model measures the percentage of users who click on an ad after seeing it. Moreover, it divides the total number of clicks on an ad by the total number of impressions (or views) of that ad.

• Ad Copy Optimization: It improves the CTR by crafting compelling headlines, clear calls-to-action (CTAs), and relevant ad messaging.
• Ad Relevance and Targeting: The model ensures that ads are relevant to the target audience’s interests, search queries, or browsing behavior.

Related: The Role of AI in On-page SEO: Improving Organic Click-through Rates

18. Impression

It refers to displaying an ad to a user on a web page, mobile app, or other digital platform.

• Viewability:  It measures whether an ad was seen by the user. Also, it tracks whether an ad is visible on the user’s screen and for how long.
• Ad Exchange: This is bought and sold through ad exchanges, which connect advertisers with publishers to facilitate the buying and selling of ad inventory.

Conclusion

Understanding the fundamental terms and concepts of Google Ads is indispensable for online retailers aiming to enhance their digital presence and attract potential customers.

The data underscores the significance of leveraging Google Ads, with a notable 15% increase in website traffic among businesses in 2023.