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Paid Advertising – AdWords 101

Let’s face it; Google AdWords is probably the best online advertising tool there is. Google is THE name in search engine technology and no other advertising network can give you faster sales results than AdWords if executed correctly. This platform can instantly get your message right in front of the people who are most likely to buy your product or service at the exact time they are looking for what you have to offer. AdWords can offer immediate measurable results on a scalable level.

If you are thinking of taking a dip into the digital advertising pool, let’s take a shallow dive into AdWords to help you understand the platform a little better and give you head start in the digital advertising race.


These are only some of the many terms you may come up against when working in AdWords. We’ve broken them down by category:

Getting Started Terms
Keywords –The most important parts of the AdWords system. Keywords are words and phrases that determine where your ads will show up. Think about what your customer would be searching for
Campaigns – This is made up of your Ad Groups, and will have your budget and location settings which help you to manage your paid advertising efforts.
Campaign Type – How your ads will be seen. Google has 3 types:
• Search network only, referring to Google search
• Display network only; ads will be featured in Google’s Display network of websites, videos, YouTube, Blogger etc… AKA AdSense
• Search network with display select; combination of the two
Ad – The image or text that is served when the appropriate keyword or keyword phrase search is conducted
Ad Groups – A set of keywords and targeting methods that are matched to your budget within a given campaign. You can have multiple ads in a single Ad Group.

Financial Terms
Bid Strategy – Your bid strategy is basically how you set your bid type to pay for viewer interaction with your ads.
Budget – How much you are willing to spend a month on traffic delivered to your website.
Cost Per Click (CPC) – How much it costs every time someone clicks on your ad. The same as “Price Per Click” or “PPC.”

Account Measurement Terms
Click Through Rate (CTR) – The number of people who click on an ad, based on how many people looked at a page with the ad on it
Quality Score – Measurement that Google creates to rate your ad headline, description, keyword and destination URL. Higher quality scores lead to better placements and lowered costs.
Ad Rank – The value that is used to determine where your ad shows up on a page. Based on your Quality Score and bid amount

General Terms
Call To Action (CTA) – The action you want your viewer to take. Use short, direct words. “Buy Now! Contact Us”
Landing Page – Refers to the first page the user will see after they click on your ad.
Impressions – How many times your ad has been shown.

How AdWords Works
Every time someone does a search on Google, an AdWords auction is created. Every advertiser who has a keyword match to the search query competes in the auction and ad placement for each advertiser is based on their Ad Rank. Once a searcher clicks on an ad that person is then delivered to the advertiser’s website and Google charges the advertiser money for that click.

This is the reason that a proper account structure is needed from the start. If your campaigns and the rest of the account aren’t properly done, you run the risk of wasting thousands of dollars on clicks that are not properly targeted for your business.

Now, even when set-up correctly, AdWords require continuous on going management to be successful. Tasks such as bid modifications, landing page testing, ad testing and more can be overwhelming and time consuming to manage. Ad Words is not a set it and forget it solution so if you are not going to have the time to manage your AdWords account we recommend hiring an AdWords marketer, like Marketing Relevance to ensure the program is executed properly.

If you would like our help in getting your AdWords program up and running, contact us at or 847-259-7312. We can get you started and take your online presence to the next level.