Review a list of terms that are regularly used in relation to Google AdWords campaign performance, and an explanation of what they mean.
Clicks = The number of times that people have clicked on your ads
Impressions = The number of times that your ads were shown
Click Through Rate (CTR) = The number of clicks on your ads divided by the number of times that the ad is shown (as a percentage). For example if your ad is shown 100 times, and clicked on once, the CTR is 1%. For AdWords anything over 1 or 2% CTR is OK, and the higher the better.
Cost = The amount that you have spent on AdWords advertising in the time period shown.
Average Cost Per Click (CPC) = The average amount that you pay whenever someone clicks on your ad.
Average Position = The average position that your ad appears in the Google search results page when it is shown. There are four ad positions at the top of the search results, and ads can also be shown at the bottom of the Search Results page, below the organic search results.
Conversion = An action that you want people to take, that you have set up tracking for. Conversions can include online sales, enquiries, phone calls, newsletter sign ups and views of key pages.
Read more in Are Your AdWords Campaigns Working Hard Enough
Conversion Rate = The percentage of website visitors who convert. For example if 100 people visit your website and two of them place an order, then your Conversion Rate is 2%.
Cost per Conversion = The amount of money that you spend on AdWords advertising in order to get a conversion.
Video Advertising Glossary (YouTube Campaigns)
Views = People who watches the video for at least 30 seconds (which is the point where the advertiser gets charged) or the whole video if it’s less than 30 seconds long.
View Rate = The percentage of people who watched the video up to 30 seconds as a percentage of those who saw it.
Average Cost Per View (CPV) = The average amount that the advertiser pays when someone views the video via a Video Campaign.
When looking at your stats for AdWords we always find it useful to compare the performance to the previous month, and the same month in the previous year, to identify if the numbers are going in the right direction, and if there are seasonal trends.
Melinda aka Mel is a Premier Google Partner, AdWords & Analytics Consultant, Speaker and Trainer and co-owner of Click-Winning Content. Mel provides results-driven services to Australian businesses and is committed to never using an acronym without explaining it first. She also likes grand slam tennis, cracked pepper and Melbourne sunsets. Please connect at the links below.