Every business needs to be familiar with some basic Google Ad terms in order to set up, manage and optimise their Google Ads. Let’s get to it!


Click-Through Rate refers to the number of clicks your ad gets as a proportion of the total number of views the ad got. A higher CTR shows a quality ad matching the searcher’s intent and one which successfully targets the relevant keywords.


Conversion Rate measures form submissions as a proportion of the total number of visits to your landing page. So, the higher the CVR, the better your landing page is in terms of promising what the ad was about and the overall user experience once they arrive on the landing page.


You can display your Google Ads either on the search engine results pages (SERPs) or a web page within the Google Display Network. The latter is an entire network of websites which allow space or ‘page real estate’ on their respective web pages to be used as Google Ads. The ads can be text or image-based and are shown along with the content which is relevant to your targeted keywords. The most popular Display Ad options at the moment are app campaigns and Google Shopping.


Google Ads run on a bidding system, where advertisers select the maximum bid amount they want to pay for every time someone clicks their ad. The higher you manage to bid, the better your ad placement. There are three bidding options to choose from:

  • Cost per engagement (CPE) refers to the amount you pay every time a user takes a predetermined action on your ad (through an app, for example).
  • Cost per mile (CPM) is what you pay for every 1,000 ad impressions – i.e. when your ad gets displayed in front of a thousand prospects.
  • Cost-per-click (CPC) is the most common option and refers to the amount you pay for every click your ad gets.


AdRank refers to your ad placement – the higher this value, the better you will rank – this means the more people visually see your ad, the higher the probability of your ad getting clicked by those users. AdRank is determined by the maximum bid x Quality Score.


Almost everyone is familiar with what keywords are, but we should understand what they truly mean in the context of Google Ads.

Keywords or phrases, when integrated correctly within your ads and other online content, is what helps people find you. So, for instance, if someone wants to look for “how to clean home windows”, they will only see ads from advertisers that have also targeted keywords along the lines of “clean home windows” or “dirt on windows”.

You always want to rank for the right keywords and not negative keywords – i.e. a list of keywords which may result in Google pulling you from the bid. Negative keywords are typically semi-related to your actual/intended search terms but do not fully comply with the products/services you’re offering or what you want to rank for.

Our Google Ads team can familiarise you will all the commonly known terms and demonstrate how they impact your ads.

Published On: December 29th, 2022 / Categories: Content Marketing, Digital Marketing, Social Marketing /

Stay Updated

Join our exclusive subscribers list to receive the latest design trends, industry updates and digital world insights in your inbox.

You can read our privacy policy here.