Understanding the Terminology Used with the Adwords Marketing Program

Individuals who are new to digital marketing may quickly become overwhelmed by the new jargon and the vast expanse of this field. However, there is one program that anyone can use, regardless of their knowledge level, and have great success when doing so. This is why many company owners choose to make use of Adwords as soon as they launch their site. What should every business owner know about this marketing method?


Keywords are of great importance in digital marketing. A keyword is nothing more than a word or phrase that an internet user inputs into a search engine to obtain information. The search engine takes this keyword and displays ads that the user will find relevant. When a user sees this ad and clicks on it, Google charges the company a predetermined fee. If a user doesn’t click on the ad, no money will exchange hands. Google takes this a step further and provides information on how many people saw the ad compared to how many clicked through to the site.

The Click-Through Rate

The click-through rate provides information on which ads are working and which need to be changed. This figure shows the percentage of users that landed on a page after clicking on an ad. For example, if 100 people are shown an ad and 47 click through to the site, the click-through rate would be 47 percent. However, a business owner must determine how much he or she is willing to pay for each click.

The Cost-Per-Click

Another thing digital marketers need to understand is the cost-per-click. The business owner determines the maximum amount he or she is willing to pay for each click. What people often don’t realize is this doesn’t mean they will pay that amount. Google looks at other factors also, such as the quality score of the ad, when determining how much each ad is worth. The goal of the search engine is to show the user exactly what he or she is looking for. A company that provides this will pay less for their ads.

This is only a basic overview of the terms used in conjunction with Adwords. There are many others. Spend time researching this marketing technique, as it is one that will be beneficial to companies of every size. The more you know, the easier it is to make the most of your advertising and your business benefits as a result.