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Google Adwords is a very important tool if you want to advertise your business online. In this article, I have listed down the important & most frequently use terms in Google Adwords, which you need to get familiar while using Google Adwords. Once you get familiar with all these terms then you will have less problem creating & managing campaigns.
Campaign includes different ads groups that contain different ads which target different keywords. We can create maximum 25 campaigns, for Each Campaign we can set a daily budget. We can use campaign to target different countries or products. we can also schedule the campaigns.

Source: “Growing your business with AdWords”
It is the part of a particular campaign. An ad group contains different ads which in turn contains various keywords. We can create 100 Ad groups for each Campaign. Different ad groups can be created to advertise different products.
You can create multiple ads for single ad groups & test the effectiveness of different ads. There are three different types of ads Text ads, Image ads & WAP Mobile ads, which you can create in the ads section.
Text Ads: It contains five parameters they are Headline, Description line 1, Description line 2, Display URL & Destination URL. All this parameters have limitation of maximum number of character per lines.
Image Ads:The image ads supports gif, jpg, png, & swf formats which could be of size 50k max, the other parameter image ads include is Name Image, Display URL & Destination URL.
WAP Mobile Ads: The mobile ads can be text ads as well as image ads the other parameters this ads includes selection of different markup language & even you can select different carriers for which you want your ads to be displayed
Keywords are the key terms that are related to the product or service you are providing. Here we can choose various keywords that are related to your ad. For Each keyword we can have specific budget. In Adwords, there are four different keywords categories which are broad, exact, phrase & negative keywords.
Exact Keywords: When you ads some keywords in exact format then the ads are only shown for that search words. Exact keywords are added as [keyword].
Example:
You have design blog as your exact keyword then your ad will be shown when users search this exact word as the search queries. If users enter different query like famous design blog then your ad wont be displayed.
Broad Keywords:Broad Keyword are just opposite to exact keywords, as your ad will appear in all search term containing that your keyword. Broad keyword are added without any quotes & brackets as keyword.
Example:
If your keyword is design blog then It will appear for the search terms like famous design blog, graphic design blog , design WordPress blog & design blog website.
Phrase Keywords: Phrase keywords are the words that will appear in the same pattern that you have added into your ad groups. The order of the keywords is taken into account. You can add phrase keyword as “keyword”
Example:
If design blog is your keyword then It will appear for the search terms design blog, wordpress design blog, flash design blog. It will not appeared for the search terms like design php blog, java blog design.
Negative Keywords: These types of keywords are used ensure your ads are not shown for that particular search terms which that are included is search queries. This keywords are added as –keyword.
Example:
If you are selling an design ebook on your website & you have design ebook as your broad keyword in the ad groups, hence when user search for free design ebook still they will see your ad & will click which will generate unwanted clicks on your ad. Hence you need to add terms like free in your negative keywords section to save the damages from such words.
It’s an abbreviation for cost per click. It is the cost you pay for each ad which has been clicked. We can set a default bid (price) for all keywords present in the ad group or we can add unique bid to each keywords.
Default Bid:If we set default bid of 5.00/- to the ad group then it is applied to all the keywords in that ad group. So if our keyword is cost is 1.00/- then it will appear for five clicks.
Unique Bid: If we set unique bid for each keyword for example 2.00 for a keyword in ad group then it is applied to particular keyword and so if your keyword is cost is 1.00/- then it will appear for only two clicks only.
It is cost per 1000 impression. Impression is number of times your ads had been displayed at Google network website. So you are charged for displaying your ads.
Example:
If your CPM is 50.00/- then you will be charged 50 bucks for displaying your ads for 1000 times at particular website.
It is known as click through rate. It is the ratio of no of ads clicked to Page impression. It is expressed in percentage. It is use check how well your ads are performing. It is expressed in percentage.
Example:
If your ad is clicked 5 times for the Page impression is 1000 then your CTR will be
CTR = No of time Ads Clicked/Page Impressions * 100 = 5/1000*100 = 0.5%
It is which position the ads will appeared on Google & its network website. The Ad ranking on Google depends on three basic things that are Max CPC, Quality Score & Min bid.
Max CPC : It the maximum cost your willing to pay for your keywords.
Quality Score: It depends on the relevancy of the ads which are displayed (It is calculated by Google).
Min Bid: It is minimum bid(price) we pay for keywords
It does not mean paying a higher CPC & bid will improve the rankings. The main factor is the relevancy of the ads. So if the ads are relevant then we don’t need to pay high price for it.
Ad Variations will help you display your alternate ads for a particular ad-group here you can set the frequency how random an ad need to be changed. This will help you decide which of your ads is working better.
Example:
It is helps our ads to be displayed at various Google network site. As many people used Google Adsense on their website to display Google ads on their website. In ad placement you will find top websites which are daily receiving more then 100k visits. So you can select website best suited for your business and can display your ads at those site.
This Feature will help to scheduling a particular ad campaign at particular time period. We can pause ad campaigns for certain days when we are receiving less conversion for example on Saturday and Sunday. We could also display ads at particular time of the day, such as we can pause our ads in the morning and at nights.
You can also download the Google Adwords Beginner Guide: http://www.google.com/adwords/pdf/hc/growing_adwords_en.pdf
If you have some tips or advise for the Google Adwords Management do let us know in the comments.
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Nikunj is a computer engineer by profession, mobile photographer by heart & quick learner of new things related to software & technology. Loves web designing & development. Visit His Blog Weby Life | Follow Him On Twitter
Friday, November 26th, 2010 19:09
Nice overview. I have a quick question about creating Adgroups. Do you usually have all broad, phrase and exact matches in one adgroup, or create an adgroup for each of these?
Thanks.
Tuesday, July 27th, 2010 02:08
Hi Nikunj,
A nice guide to the basics of Google AdWords. When building keywords and ad groups, it’s always worth remembering that the end goal should be to deliver highly relevant ads which cater for the specific demands of searchers.
Nice article and very well explained.
Saturday, July 24th, 2010 11:57
Hey Nikunj am working as a SEO & SEM consultant in web design and development company at dubai… It’s really cool to read about the title crash course in google adwords simply you explained about google adwords… This is useful for business developers to explain clients for search engine marketing purpose, but when we talk about search engine marketing professionals they are looking forwards to gain more knowledge about conversion tracking kind of things.. Hope you will explain those things in your next blog topic as like as you explained this one… Eager to see your next title…
Monday, July 26th, 2010 16:02
Hi Venkatesh,
As this post was about basic tips on Adwords so i did not mention about the ROI or the conversion rate. When I will write the next post about Adwords or search engine marketing will surely make the point to explain the conversion rate.
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Venkatesh
Saturday, July 24th, 2010 11:57
Hey Nikunj am working as a SEO & SEM consultant in web design and development company at dubai… It’s really cool to read about the title crash course in google adwords simply you explained about google adwords… This is useful for business developers to explain clients for search engine marketing purpose, but when we talk about search engine marketing professionals they are looking forwards to gain more knowledge about conversion tracking kind of things.. Hope you will explain those things in your next blog topic as like as you explained this one… Eager to see your next title…
Nikunj Tamboli
Monday, July 26th, 2010 16:02
Hi Venkatesh,
As this post was about basic tips on Adwords so i did not mention about the ROI or the conversion rate. When I will write the next post about Adwords or search engine marketing will surely make the point to explain the conversion rate.
Alan Mitchell
Tuesday, July 27th, 2010 02:08
Hi Nikunj,
A nice guide to the basics of Google AdWords. When building keywords and ad groups, it’s always worth remembering that the end goal should be to deliver highly relevant ads which cater for the specific demands of searchers.
Nice article and very well explained.
David
Friday, November 26th, 2010 19:09
Nice overview. I have a quick question about creating Adgroups. Do you usually have all broad, phrase and exact matches in one adgroup, or create an adgroup for each of these?
Thanks.