Art Unlimited Dictionary

Megan Saraurer

Ad Extensions are like ‘add ons’ to your standard PPC text ad. They provide additional information (and revenue opportunities for Google) such as your company address, phone number, more page links, product images and even email newsletter sign up boxes. Ad extensions are another way to customize your PPC strategy based on the nature of your business – i.e. a retailer probably wants to include their address in their PPC ad while an emergency plumber would be better served including their phone number in the ad..

Megan Saraurer

Where your ad displays on a search results page. There are roughly 10 paid ads per search results page. Position “1” refers to the top position on the first page of search results (page 1). Generally speaking, your ad position is determined by two things – your bid (how much you are willing to pay per click) and your quality score (how relevant your ad and website landing page are vs. the bid keyword – more relevance equals a higher quality score and higher ad positions at a lower cost per click).

Megan Saraurer

Clickthrough Rate is a measure of PPC performance determined by dividing the number of clicks received by the number of impressions received. Clickthrough Rate is tied to keywords and PPC ads. For example, if someone searches for “Maryland HVAC companies” and they see an ad titled, “New York HVAC Companies”, it is highly unlikely that they will click the (seemingly) irrelevant ad. The PPC advertiser displaying the NY ad for a MD search is going to have a very low CTR associated with their ad (because the ad is receiving impressions, but it is not attracting clicks). CTR is also used to determine a keywords Quality Score. By having high CTRs and Quality Scores, a PPC advertiser can achieve a higher ad position at a lower cost.

Megan Saraurer

Paid reach is the number of people who had a paid post from your Page enter their screen. Organic reach is the number of people who had an unpaid post from your Page enter their screen.

Megan Saraurer

Advertisers (you) bid on keywords and pay a fee every time an ad is clicked by a searcher.

Megan Saraurer

There is a stereotype that PPC ads are often irrelevant or guide visitors to websites not matching their original search query. Google wants more click (clicks equal money for GOOG), but they know that if they drive people to click irrelevant ads, searchers may go elsewhere to find what they need online. Quality Score works as an incentive and a penalty. It rewards the PPC advertiser that: bids on relevant terms, creates ads closely related to their keywords and creates landing pages (or the web page that follows the PPC ad) closely related to both the keyword and the ad. Quality Score punishes PPC advertisers that bid on terms not related to their business and/or those advertisers too lazy to create highly targeted ads and website landing pages.

Megan Saraurer

Related to ROI, ROAS is the revenue generated per dollar spent. ROAS can be a useful metric when you want to compare the performance of two different advertising strategies. Cost per lead can be misleading. Suppose one Yellow Page ad has a cost per lead of $90 and the other has a cost per lead of $50, but the YP ad with the $90 cost per lead generates $700 jobs while the ad with the $50 cost per lead generates $300 jobs. Alternatively, what if one advertising strategy generates leads that convert to sales at a much higher rate? In both of these cases, calculating the ROAS would be helpful for determining which ad is actually more effective.