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  • Online advertising has a language all its own

  • and if it sounds like a foreign language to you

  • You're not alone.

  • But it's important to get comfortable with the terms

  • so that you can make the most out of your AdWords investment.

  • To help make sense of it all, here's a scenario:

  • Owen is planning a wedding

  • and Brenda is a photographer.

  • Brenda uses AdWords to advertise online

  • to people who are looking for a photographer.

  • This is one of her ads.

  • Brenda takes three types of photos:

  • Babies,

  • Real estate

  • and weddings.

  • She uses different ads for each area of her business.

  • Each collection of ads makes up an ad group.

  • Brenda assigns to each ad group

  • the words and phrases that are relevant to that part of her business.

  • These are keywords.

  • AdWords uses keywords to help decide which ads

  • to show to people searching for things online.

  • Brenda's three ad groups make up a campaign.

  • The campaign is where Brenda decides big picture things,

  • like her preferences for the devices her ads will show up on,

  • and how much she spends.

  • Owen types "experienced wedding photographer" into Google.com.

  • The phrase "experienced wedding photographer" is his search term.

  • He sees two types of search results:

  • organic search results located in the middle of the page

  • are the websites that match Owen's search term.

  • No one can pay to appear in these results.

  • The second type of results, paid results, are usually located

  • At the top

  • bottom

  • or right side of the page.

  • These are ads from businesses that are using AdWords.

  • In most cases, an advertiser is charged when someone like Owen

  • clicks one of these ads.

  • Does Brenda's ad appear when Owen makes his search?

  • That depends.

  • Whenever someone uses Google to search

  • there's an auction that determines which ads appear and in which order.

  • Two main factors determine the outcome:

  • How much an advertiser is willing to pay for a click,

  • which is a bid,

  • and something called "Quality Score".

  • Quality Score is an estimate of how relevant and useful your ad

  • and the page on your website it links to

  • are to someone seeing your ad.

  • Together, bid and Quality Score determine

  • where and if Brenda's ad appears on Owen's search results page.

  • Bids and budget are different.

  • Your bids affect how much you'll spend

  • each time someone clicks one of your ads.

  • Your budget affects how much you'll spend

  • each day on your entire campaign,

  • which influences how often your ads are shown.

  • As it turns out, Brenda's ad appears on Owen's search results page.

  • This is an impression.

  • Owen clicks Brenda's ad to find out more on her website.

  • This is a click.

  • Owen likes what he sees on Brenda's website

  • and hires her to photograph his wedding.

  • Brenda's ad has gotten Owen to do something valuable.

  • Hire her for an event.

  • This is a conversion.

  • Owen is a satisfied customer.

  • Brenda is a happy advertiser.

  • These are results.

Online advertising has a language all its own

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Learn The ABCs of AdWords

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    Jason Tsao posted on 2016/01/21
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