Decoding Google Ads: Four Key Terms Every Small Business Owner Should Know
Jim Moore • June 12, 2023
Conquer Google Ads: Four Essential Terms to Power Up Your Campaigns
If you're a small business owner dipping your toes into the Google Ads universe, you've likely encountered a sea of acronyms and jargon that can feel like a foreign language. Fear not! We're here to decode five crucial terms that will help you navigate Google Ads with confidence and ease.
- CPC (Cost-Per-Click): If Google Ads is a supermarket, CPC is the price tag on your products. It's how much you pay each time someone clicks on your ad. Your actual CPC is often less than the maximum bid you set in your account because Google charges you the lowest possible amount for that click.
Understanding CPC is crucial to budgeting your ad spend effectively. If you're spending more on clicks than what you're making from those clicks (in terms of sales or leads), you might need to adjust your bidding strategy or improve your ad quality. - CTR (Click-Through Rate): CTR is the percentage of people who click on your ad after seeing it. It's calculated by dividing the number of clicks your ad gets by the number of impressions (how many times your ad is shown).
A high CTR indicates that your ad is relevant and enticing to viewers, while a low CTR might suggest that your ad isn't hitting the mark. By tracking your CTR, you can gauge the effectiveness of your ads and make necessary tweaks to improve performance. - Conversion:
In Google Ads lingo, a conversion isn't just a sale. It's any action a user takes that's valuable to your business. This could be filling out a contact form, signing up for a newsletter, making a purchase, or even making a phone call to your business.
Setting up and tracking conversions in Google Ads allows you to understand how your ads are driving these valuable actions. - Remarketing:
Ever browsed for a product and then seen ads for it everywhere you go online? That's remarketing in action. It allows you to show ads to people who've visited your website or used your app, keeping your brand front and center as they browse Google or its partner websites.
Remarketing can be a powerful tool to engage users who've shown interest in your products or services. It offers a second chance to convert those 'almost customers' who've shown interest but haven't yet taken the plunge.
Understanding these four Google Ads terms is like holding a compass in the vast landscape of digital advertising. They are key indicators of your campaign performance and provide insights for strategizing your efforts. So, don't let the jargon intimidate you. Embrace these terms, and let them guide your journey to Google Ads success.
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