PPC Explained…

If PPC isn’t one of your strongest subjects, we hope that we have the help. Our PPC expert, Thomas has explained some of the most important and common PPC terms. From the basics to more complex terms, Espresso Web hope that this blog post will help you to develop your understanding of PPC. Here it goes!

The Basics

Account – A Google AdWords account is the highest level, everything is housed within the account and settings such as Currency, Time Zone, Conversion Tracking, Analytics linking, Merchant Centre linking and User Access are set at account level.

Campaign – A campaign is where the adgroups are housed. Daily budgets are set at account level and it is recommended that campaigns are split depending on brand/product type/service etc. E.G. Nike Shoes, Emergency Locksmith, Emergency Fault Finding etc

Search Campaign – A search campaign targets users by bidding on keywords which are likely to be searched for, then showing an ad on the Search Engine Results Page (SERP) which is relevant to that keyword. These campaigns work on a cost-per-click basis

Shopping Campaign – A shopping campaign is not keyword based, however ads are triggered when a user searches for a term which matches with the product title in the merchant feed. E.G. Somebody searching the term Nike Blazer, could see a product listing ad for Blue Nike Blazer Size 10 due to matching with part of the title. These campaigns work on a cost-per-click basis.

Display Campaign – Display campaigns do not have to be searched for by a user, they appear on various sites on the Google Display Network (GDN) depending on targeting settings set by us e.g. If a user has visited the Bedec page on the Promain website they will see a banner ad if they visit a website opted into the GDN

Remarketing – This is the term used for targeting previous users of your site through display campaigns, based on criteria set in the Remarketing Campaign

Static Remarketing Banner – Remarketing banners that do not move and are not interactive

Dynamic Remarketing Banner – These banners are interactive and show products which have been viewed previously on your site. Usually only used for eCommerce websites but are more relevant to the customer.

Monthly Budget – This is decided by the client and it is what we work to each month. There is no option in AdWords to set a monthly budget.

Daily Budget – This is set at campaign level and differs depending on campaign performance. AdWords will allow budget to exceed the limit by 20% on some days depending on traffic on that day, but will decrease it by 20% on other days for balance. It is important to note that the total daily budget does not guarantee this amount will be spent each day. E.g. £50 a day could spend £30.

Adgroup – Adgroups are the level below campaigns, these are where keywords and ads are housed. It is recommended adgroups are split by theme and the keywords are as specific as possible to the ads in that adgroup. E.g. Nike Shoes (Campaign) – Nike Blazers (Adgroup), [Nike Blazers] (Keyword) Nike Blazers Ad Text (Ad)


Advanced PPC Terms

Keyword – A keyword is a term which would be bid on in order to show a text ad. We decide which keywords are targeted based on keyword research

Negative Keyword – A negative keyword is something which stops ads showing for a specific search term. E.g. Specsavers could have [wine glasses] as a negative keyword to stop ads for glasses showing up for wine glasses.

Expanded Text Ad – An expanded text ad is the new ad format and is currently the only supported text ad format. An expanded text ad features two 30 character headlines, one 80 character description line and takes up more space on the SERP as a result.

Standard Text Ad – Standard text ads are now unsupported by AdWords, meaning any active ads can not now be optimised or changed in any way. If a client still has these ads running over expanded it is a red flag that the account needs optimising.

Audience – An audience is a list of previous users who clicked through the PPC ad who are still being tracked on the 30 day cookie. These users can be sorted by set criteria e.g. visited a certain page, then applied to a campaign using either “bid only” which means these users are targeted with higher bids than other customers or “target and bid” which means the campaign is targeted specifically to that audience and nobody else.

Demographic Bid Adjustment – A new feature in AdWords which allows you to bid on customers by age groupings or gender. Data on both would be analysed before bids are made

Sitelink Extension – Appears below the ad, providing the option for customers to visit other parts of your site. Also takes up more space on the SERP giving your ad more of a presence. Can be used with no description underneath the link, however this is not recommended and shows poor optimisation. A click on a sitelink is charged on a cost-per-click basis, however it will be tracked on the same cookie so clicking the sitelink then the ad will not charge extra

Callout Extension – Non-clickable text under the ad which can be used to show further USP’s for your products/service. As this is not clickable it is not charged

Call Extension – Clickable phone number which appears underneath an ad. Can be tracked based on call length to measure the effectiveness of the extension. Measured on a cost-per-click basis

Structured Snippet Extension – Allows you to list certain aspects of your business e.g. service catalogue, brands etc underneath your ad. This is not clickable and is not charged

Analytics Linking – It is important for Analytics to be linked to AdWords as it can import goals (e.g. contact us form) in as conversions as well as Analytics stats (bounce rate, page duration etc) in as metrics.

Merchant Centre – The Merchant Centre is where the websites product feed is sent so that it can be used in Google Shopping. Nothing in the AdWords account can be altered from the Merchant Centre.

Merchant Centre Linking – The Merchant Centre can only be used in one AdWords account at a time. It needs to be linked to AdWords to enable Google Shopping to be used.

Click – When a user clicks through an ad

Impression – When an ad is seen on the SERP

Click Through Rate (CTR) – Clicks divided by impressions = CTR

Average Cost Per Click (Avg CPC) – The average of all of the cost-per-clicks that have been accrued through a set period of time. Can be measured at account, campaign, adgroup and keyword level.

Conversion – When a user completes a desired action on a site e.g. sale, call, contact us form

Cost Per Acquisition (CPA) – How much the customer is paying on average before they make a conversion

Total Conversion Value (Revenue) – How much each conversion is worth. For eCommerce this is picked up through the tracking code. For other conversions e.g. call, contact us form this can be set to a certain value e.g. how much each job is worth to someone

Conversion Value / Cost (ROI) – Total conversion value divided by cost, can be measured at account, campaign, adgroup and keyword level

Value / Conversion (Average Order Value) – Average order value, can be measured at account, campaign, adgroup and keyword level

Assisted Conversion – An assisted conversion is a conversion which wasn’t directly caused by PPC, however PPC played a role in it. E.g. the user originally clicks through a PPC ad, sees a product they want, leaves the site to comparison shop and comes back through an SEO listing and converts.

Assisted Conversion Value – The revenue value which was accrued from assisted conversions

Device Bid Adjustment – A device bid adjustment can be set at campaign or adgroup level and allows percentage bid adjustments to be made on computers, mobiles and tablets. E.g. -20% on mobile devices, +20% on tablets etc

Location Bid Adjustment – A location bid adjustment can be set at campaign level only and allows you to make percentage bid adjustments based on a user’s geographic location. E.g. +20% for London, -10% for Newcastle etc

Ad Scheduled Bid Adjustment – Ad  scheduled bid adjustments can be made at campaign level only, this allows you to set hours of the day when you want your adverts to run and put percentage bid adjustments on peak times of day, e.g. between 12pm and 3pm increase by 20%, decrease by 80% between 11pm and 5am.

For further information on PPC and how it can help your business strive with the online market, be sure to choose Espresso Web today. We’d love to help take your business to the next level.

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