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Paid Search Glossary

Keep up with your digital advertising agency and know your Paid Search terms.

Ad Group
A collection of relevant keywords under one name. A maximum of 20,000 keywords can be added to one Ad Group.
Tips:
Keep the theme tight/singular for each ad group, this will also help control the keywords used and keep costs manageable. For example, if you provide Security SAAS the campaign is for one brand, the ad groups could be defined by use case or industry.
Ad Network
An online business that specializes in matching up advertisers to websites looking to host the ad. Ad networks work as brokers for both suppliers (sites with content that can host ads, and buyers - the advertisers). An ad network relieves the websites from having to setup and invest in their own ad-servers and tracking software.
Tips:
In Google, for search campaigns, select Search Network and Include Google Search Partners (optional check box). Do not select the Display Network for search campaigns, this will cause unnecessary costs for your campaign.
Ad Position
The order in which an ad is displayed on a search engine results page (SERP). For example, ad position "1" means the ad is displayed first on the webpage.
Tips:
Google no longer provides this info in the AdWords platform. However, the ad position is actually a formula based on several factors. Your CPC bid, ad quality including landing page, how competitor the Google auction is at that time, the context of the search query, and the ad extensions (sitelinks, tel#, etc.)
Ad Rank
A value used to determine the Ad Proposition.
Call-To-Action (CTA)
A marketing term used for the action you want the website visitor to take.
Tips:
The higher up on the page the Click-Through-Rate (CTA) is positioned on the landing page, the easier the potential customers will find it. If it’s highlighted as a button, or a lead form, ensure the customer doesn’t have to scroll down the landing page in order to find this. The CTA justifies your budget.
Campaign
A series of ad groups used by a company to advertise their products and inform the customers about some promotion. Search engine marketing (SEM), social media marketing, and display marketing are all channels.
Tips:
This is the easiest way to organize your paid search account. Start a high level, consider using your current navigational menu on your website to assist in building out an effective online search campaign.
Channel
A metric showing how often a visitor clicks your ad after seeing it. It can be defined as the number of clicks per thousand impressions. CTR contributes to Ad Rank.
Click-Through-Rate (CTR)
A metric showing how often a visitor clicks your ad after seeing it. It can be defined as the number of clicks per thousand impressions. CTR contributes to Ad Rank.
Tips:
Ensure your landing page content and CTA match your ad copy and any offers being promoted. This increases clicks, and over time, it will lower your CPC (and also increases your quality score).
Conversion
When the user takes the action the advertister wants after clicking on an ad. For example, the user makes purchases, signups, submits inquiry forms, views a page, or downloads a document, depending on the program’s goals.
Tips:
This is also related to the Call-To-Action (CTA). CTA is the desired conversion on the website. Make it as easy as possible for customers to find this on the landing page AND the overall website.

Conversion Rate
The measurement of the successes for a paid ad campaign. It is measured by the number of potential visitors performing any of the desired actions such as buying a product, filling a form, etc. For example, if there are 100 visitors to a particular webpage via a PPC ad, and three of those 100 visitors buy the product the website sells, then the conversion rate for that particular ad is three percent. The larger the conversion rate, the more successful the website is.
Tips:

The user experience also plays an important role in this number. The easier the process to purchase is, the easier it will be to gain more conversions. You will need to decide what the conversion actually is; is it a purchase, a completed lead form, or a newsletter sign-up?

A good rule of thumb is also providing a confirmation email after purchase, or offering relevant content/products matching said purchase on the Thank You page (don’t forget to track all of these website actions)

Cost Per Acquisition
The amount you pay for every lead or customer.
Tips:
The lower it costs to have potential customers provide their contact details or buy your product or service, the better your ROI and bottom line. This is why high-ranking ads and high-quality scores matter, they lead to decreased CPCs and cut your spending. Less spend can lead to more budget poured into the account (through testing new keywords, ad copy, and landing pages!)
Cost Per Action
The amount you pay for every lead, signup, or purchase.
Tips:
The lower it costs to convert, the better your ROI and bottom line. This is why high-ranking ads and high-quality scores matter, they lead to decreased CPCs and cut your spending. Less spend can lead to more budget poured into the account (through testing new keywords, ad copy, and landing pages!)
Cost Per Click (CPC)
The amount you pay for every single click on your ads.
Cost Per Mille (CPM)
The amount paid for every thousand views of the ad.
Destination URL
Where you want the user to land when they clicks on the ad.
Display URL
A URL shown with the ad that gives visitors an idea where they will arrive upon clicking the ad. This is usually a shorter URL than the actual desintation URL.
Geo-Targeting
Targeting ads to users located within a particular geographical location of the world.
Impression
A measure of the number of times an ad is seen irrespective of being clicked upon. Each time the ad displays, it is counted as one impression.
Keyword
A word or a phrase of words entered in the search box by the user. The search engine matches your keywords and gives you relevant results on the Search Engine Results Page (SERP).
Landing Page
A web on which the visitor lands after clicking an ad or a paid-search. It may be a regular part of the site or a standalone page indended purely for landing of such actions.
Negative Keywords
Keywords for which you do not want your ad to appear alongside.
PPC Bid
The maximum fee an advertiser is prepared to pay for a click.
Prospect
A potential customer for a product or service being advertised.
Quality Score
A dynamic metric assigned to each of your keywords and ads. It determines the quality of your keyword, ad, and landing page. A high-quality score boosts the ad rank.
Search Engine Result Page (SERP)
The page that lists the results returned by the search engine in response to a user query.
Split Testing (or A/B Testing)
A way of optimizing a PPC ad by serving up multiple versions and comparing the performance to see which performs better.
Two people looking over a page of charts and results

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