Paid Search Terms You Should Know

Digital advertising can feel like learning a new language. Whether you’re just starting with paid search or looking to refresh your knowledge, understanding these key terms is crucial for running successful campaigns. In this post, I’ll break down some of the essential terminology you need to know to navigate the world of paid search advertising.

Understanding the Basics

Keyword:

A keyword is what you choose to target in your campaigns and they are segmented at the ad group level.

Search Query:

A search query is what users actually type into the search engine. For example, if you bid on the keyword best online school, but that could match to the search query best online colleges.

Match Types:

Match types determine how closely a search query needs to match your keyword for your ad to appear:

• Exact Match: The search query must match your keyword exactly or have the same intent.
• Phrase Match: The search query must contain your keyword phrase in the same order.
• Broad Match: Allows your ad to show for related searches, synonyms, and relevant variations.

Campaign Structure

Campaign

A campaign is the top-level structure in a paid search account. It contains ad groups, keywords, and ads. Campaigns also control overarching settings like budget, location targeting, and bid strategy. Structuring your campaigns effectively ensures alignment with your marketing objectives.

Ad Groups

Think of ad groups as organized containers within your campaign. Each ad group typically focuses on a specific theme or set of related keywords. When should you put keywords into a new ad group? When they need to have a unique ad. Thus the reference to the name ad group.

This approach ensures that your ads are highly relevant to the keywords they target, which can improve Quality Scores, drive better click-through rates, and ultimately lower costs. By grouping keywords thoughtfully, you can tailor ad copy to speak directly to your audience’s intent, making your campaigns more effective and easier to manage

Key Metrics and Measurements

Click-Through Rate (CTR)

CTR measures the percentage of people who click on your ad after seeing it. Calculate it by dividing clicks by impressions and multiplying by 100.  For example, if your ad receives 100 impressions and 5 clicks, your CTR is 5%. A higher CTR generally indicates that your ad is relevant and compelling to your target audience. 

Cost Per Click (CPC) Bid

Your CPC bid is the maximum amount you’re willing to pay for a click on your ad. However, the actual amount you pay (actual CPC) might be lower, depending on your Quality Score and competition. Setting the right CPC bid requires balancing your budget with your desired ad position and conversion goals.

Conversions

A conversion occurs when a user completes a desired action on your website after clicking your ad. This could be:

•  Making a purchase
• Signing up for a newsletter
• Downloading a whitepaper
• Requesting a quote

Ad Quality Metrics

Quality Score

Google assigns a quality score to your keywords based on ad relevance, expected CTR, and landing page experience. A higher score can lower your CPC and improve your ad placement.

 Ad Rank

Ad rank determines the position of your ad on the SERP. It’s calculated using your CPC bid and quality score, among other factors.

Now you Know

Understanding these paid search terms is essential for running effective campaigns. While the terminology might seem overwhelming at first, knowing essential metrics and how to structure a campaign is crucial in search engine marketing.

Need help navigating the complexities of paid search? I’d love to help you optimize your marketing efforts. Visit my contact page to get started on your journey to paid search success!