PPC (pay-per-click) advertising can be confusing for any digital marketer who doesn’t know the lingo. Once you do, however, it can be a useful tool for driving targeted traffic to your website, generating leads and boosting sales. Successful PPC requires determination and strategic thinking. But if you don’t know the difference between an ad auction and a bid adjustment, don’t worry. Our PPC glossary explains essential PPC terms so you can spend less time Googling ‘tracking pixel’ and more time driving results for your brand.

Google Ads and PPC platformsThe top PPC glossary terms you need to know

Ad auction

The ad auction is the process that determines which ads will appear on a search engine results page (SERP) and in what order.

Every time a search is conducted, advertisers bidding on the keywords in the query participate in a real-time auction. Winning the ad auction depends on factors such as bid amount, ad quality and user experience, so understanding these terms is essential for effective campaign management.

Examples of ad auctions include Google Ads, Microsoft Advertising and Facebook Ads.

Ad copy

Ad copy refers to the words used in your advertisement. It is a critical component of your PPC ad, as it communicates your message to potential customers. Engaging, relevant ad copy can significantly improve your click-through rate and conversion rates by capturing the attention of your target audience and compelling them to take action.

Discover Submerge’s expert copywriting services.

Ad extensions

Ad extensions are additional pieces of information that expand your ads with extra details. These can include phone numbers, additional links or locations. They provide more reasons for users to engage with your ad. Using ad extensions can enhance your ad’s visibility and effectiveness, often leading to improved ad rank and performance.

Ad rank

Ad rank determines your ad’s position on the SERP. It’s calculated based on your bid amount, the quality of your ads and the expected impact of ad extensions. A higher ad rank results in better ad placement, which can lead to increased visibility and higher click-through rates.

Ad scheduling

Ad scheduling allows advertisers to control when their ads are shown. By setting specific days and times for your ads to appear, you can optimise your budget and ensure that your ads reach your audience at the most effective times. This strategic approach can help maximise your return on investment.

Ad quality

Ad quality refers to the relevance and effectiveness of your ad in meeting the user’s needs. Platforms like Google Ads use a Quality Score to measure this, which considers factors such as the relevance of your ad text, the expected click-through rate (CTR), and the quality of your landing page.

Higher-quality ads can lead to better ad positions and lower costs per click, even if your bid is lower than a competitor’s.

Ad relevance

This measures how closely your ad matches the intent of the user’s search query. If your ad copy aligns with the keywords you are targeting, this can improve ad relevance.

Bid adjustment

Bid adjustment is a strategy that allows you to increase or decrease your bids based on certain conditions, such as device type, location or time of day. This helps you to optimise your ad spend by focusing more of your budget on high-performing segments and reducing spend on lower-performing ones. Smart bid adjustments can improve the impact and results of your campaign.

Bid amount

This is the maximum amount you’re willing to pay for a click on your ad. In PPC auctions, your bid amount helps determine your ad’s position in relation to other advertisers. While higher bids can increase the likelihood of your ad being displayed prominently, they’re not the sole factor in ad placement.

Bid strategy

Bid strategy refers to the approach you take to setting bids for your ads. You can choose from various strategies, including manual bidding and automated bidding. Each has its own advantages. Choosing the right bid strategy is critical for aligning your campaign with your marketing objectives and budget.

Call-to-action (CTA)

A call-to-action (CTA) is the prompt in your ad copy that encourages users to take a specific action, such as ‘Buy Now’, ‘Sign Up Today’ or ‘Learn More’. A strong, clear CTA can significantly improve your ad’s effectiveness by guiding users towards your desired action.

Click-through rate (CTR)

Click-through rate (CTR) is a metric that measures the number of clicks your ad receives divided by the number of impressions. A high CTR indicates that your ad is doing well with users, while a low CTR may suggest the need for optimisation. Monitoring and improving CTR is crucial for maximising ad performance and quality scores.

Conversion rate

Your conversion rate is the percentage of users who complete a desired action – such as making a purchase or signing up for a newsletter – after clicking on your ad. A high conversion rate indicates effective ad targeting and landing page experience, while a low rate may show that you need to adjust your PPC strategy or design.

Conversion tracking

Conversion tracking is the process of monitoring users’ actions after interacting with your ad. By setting up conversion tracking, you can measure the success of your campaigns and gain insights into user behaviour. This data is essential for optimising future campaigns and improving ROI.

Cost Per Click (CPC)

Cost per click (CPC) is the amount you pay each time a user clicks on your ad. It is a key metric for managing your PPC budget and evaluating the cost-effectiveness of your campaigns. Lowering your CPC while maintaining or increasing ad performance is a common goal for advertisers looking to optimise ROI.

Customer match

Customer match allows you to target ads to specific audiences based on data you already have, such as email lists. By reaching users who have already engaged with your brand, customer matches can tighten targeting precision and campaign relevance. This can potentially lead to higher conversion rates.

PPC glossary - monitoring performanceDisplay network

The display network is a collection of websites and apps where your PPC ads can be shown. Unlike search ads, which appear on SERPs, display ads are visual and can reach users while they browse online, watch videos or use mobile apps. This broad reach can increase brand awareness and engagement.

Geotargeting

Geotargeting is a PPC strategy that focuses your ads on users in specific locations. By targeting geographic areas relevant to your business, you can increase the relevance of your ads and improve conversion rates. Geotargeting is particularly good for businesses with physical locations or region-specific services.

Google Ads

Google Ads is one of the most popular PPC advertising platforms. It allows businesses to display ads on Google’s search engine and its network of partner sites. Understanding how to navigate and optimise campaigns within Google Ads is essential for taking advantage of Google’s huge audience.

Find out more about our Google Ads services.

Impression share

Impression share is the percentage of impressions your ads receive compared to the total number of impressions they were eligible to get. A high impression share indicates strong ad visibility, while a low share may suggest the need to adjust bids or improve ad quality.

Impressions

Impressions refers to the number of times your ad is displayed, regardless of whether it is clicked on. Tracking impressions helps you see the reach and visibility of your campaigns, and this information can help you evaluate how well your ad placements and targeting strategies are working.

Keyword matching

Keyword matching is a strategy that determines how closely a user’s search query must match your keywords for your ad to be eligible to appear. There are several types of keyword matching, including broad match, phrase match and exact match, each offering different levels of precision and reach.

Landing page

A landing page is the web page users are directed to after clicking on your ad. It plays an important role in converting clicks into actions, as its relevance and quality can impact conversion rates. Optimising your landing pages for user experience and alignment with your ad content is key for a successful PPC campaign.

A good landing page experience involves relevant content, fast load times and easy navigation.

Long-tail keywords

Long-tail keywords are longer, more specific keyword phrases that often have lower search volume, but higher conversion potential. They can help target niche audiences and reduce competition, making them an effective strategy for improving ad relevance and achieving cost-efficient conversions.

Read more about longtail keywords.

Lookalike audience

A lookalike audience is a targeting option that allows you to reach new users who are similar to your existing customers. By leveraging data from your current audience, you can expand your reach to potential customers who may be more likely to engage with your brand, boosting your targeting precision.

Negative keywords

Negative keywords are terms that you exclude from your PPC campaigns to prevent your ads from appearing in irrelevant searches. By filtering out these terms, you can improve ad targeting, increase CTR and reduce wasted ad spend.

PPC campaign

A PPC campaign is a structured advertising effort on a platform like Google Ads or Bing Ads, where you pay for each click on your ad. Successful PPC campaigns require careful planning, execution and optimisation to achieve goals such as increased traffic, leads or sales.

Discover our PPC agency services.

Quality score

Quality score is a metric used by Google to evaluate the relevance and quality of your ads, keywords and landing pages. A higher quality score can lead to better ad positions and lower CPCs, making it a critical factor in optimising your PPC campaigns.

Remarketing

Remarketing is a strategy that targets users who have previously interacted with your website or ads. By re-engaging these users with new, tailored messages, remarketing can increase conversion rates and boost brand recall, helping you maximise the value of your existing audience.

Win customers with successful PPC campaignsROI

ROI, or Return on Investment, measures the profitability of your PPC campaigns by comparing the revenue generated from the ads to the cost of running them.

Use of free PPC ROI calculator to work out how successful your PPC campaigns are.

Search network

The search network consists of search engines and other sites where text ads can appear. Ads on the search network are triggered by users’ search queries, making them highly relevant and effective for capturing intent-driven traffic.

Segments

These are the specific conditions or criteria you use to adjust your bids in a PPC campaign, such as device type (such as mobile), geographic location or time of day.

Split testing (A/B testing)

Split testing, or A/B testing, involves comparing two versions of an ad or landing page to determine which performs better. By systematically testing variables like ad copy, images or CTAs, you can improve elements of your PPC campaigns for better performance and higher conversion rates.

Good planning can help boost PPC successTarget CPA (Cost Per Acquisition)

Target CPA is a bidding strategy that aims to achieve a specific cost per acquisition. By setting a target CPA, you allow the platform to automatically adjust your bids to generate the most conversions within your chosen budget, helping you control spending and improve ROI.

Use our free cost per acquisition (CPA) calculator to work out your ad effectiveness.

Target ROAS (Return on Ad Spend)

Target ROAS is a bidding strategy focused on getting a specific return on ad spend. By setting a target ROAS, you enable the platform to adjust bids to maximise revenue in relation to ad spend, improving your profitability and the effectiveness of your campaign.

Tracking pixel

A tracking pixel is a small piece of code placed on a website to collect data about its user interactions. This data can be used to measure campaign performance, track conversions and gather insights for audience targeting. This makes tracking pixels an important tool for PPC optimisation.

User experience

This encompasses the overall user experience when interacting with your ad and landing page. A positive user experience involves having a clear, relevant, and engaging ad that leads to a landing page that matches the ad’s promise, loads quickly, and is easy to navigate. A good user experience can improve your Quality Score, enhance conversion rates, and build trust with your audience.

Learn more about our UX/UI design agency services.

View-through conversion

View-through conversions occur when a user sees an ad, does not click on it, but later completes a conversion on your website. Tracking view-through conversions helps you assess the indirect impact of your display ads. It provides a better and more comprehensive view of campaign effectiveness.

Ready for your PPC campaign? Knowing the right vocabulary will help, whether you’re optimising bids, writing ad copy or using advanced targeting options.

Contact us to learn more about our PPC services and how Submerge can take your digital marketing efforts to the next level.