Google AdWords: Learning Center

Learning Center

Lessons Catalog

Lesson 1a: Introduction to AdWords

Google and Google AdWords

Basic AdWords Features

• Basic Definitions

• The Google Network

• Language and Location Targeting

• Quiz

Benefits of AdWords

• AdWords Benefits

• Quiz

Objective: Learn the definitions of cost-per-click and clickthrough rate, the benefits of opting into the Google Network, and the advantages of language and location targeting.

Using Google AdWords for the first time may introduce you to some new terminology. Here are four of the most commonly used AdWords terms.

Cost-per-click (CPC): Under its cost-per-click (CPC) pricing model, AdWords will charge your account for each click on your ad(s). You won't incur any costs if your ad is displayed for a search query, but users don't click it.

Quality Score: Quality Score is the basis for measuring the quality of your keyword and determining your minimum bid. Quality Score is determined by your keyword's clickthrough rate (CTR), relevance of your ad text, historical keyword performance, and other relevancy factors. The higher your Quality Score, the lower your minimum bid and price you'll pay per click.

Minimum bid: The amount assigned to a given keyword in your account based on its quality (or Quality Score). The minimum bid is usually the least amount you can pay per click in order for your keyword to show ads.

Clickthrough Rate (CTR): Your clickthrough rate (CTR) is a metric that helps show you how your ads are performing. The more relevant your ads are, the more often users will click on them, resulting in a higher CTR. The system calculates your CTR as follows: Number of ad clicks/number of impressions x 100.

With Google AdWords, your ads are eligible to appear on the Google Network - comprising thousands of high-quality search and content sites and products - in addition to Google search results pages. Electing to show your ads on the Google Network can greatly expand your marketing presence to customers you might not have reached on Google alone.

To learn more, see the Ad Distribution lesson.

A significant benefit of AdWords is the ability to target your ads to almost any language and location worldwide. For example, you can target your ads to Spanish speakers in California or Portuguese speakers in Brazil. This language and location targeting functionality lets you tailor your ads and promotions to increase your business's appeal to a variety of audiences. To learn more, see the Language and Location Targeting lesson.