100+ Pay-Per-Click Definitions Every Advertiser Must Know

100+ Pay-Per-Click Definitions Every Beginner Must Know 1
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Pay-Per-Click advertising is an incredible way to generate new business and gain more traffic to your site. However the terminology involved can be confusing to a newbie. Here we aim to explain all the definitions and phrases you need to know.

What is Pay-Per-Click (PPC)?

Pay-Per-Click (PPC) is defined as a model of internet marketing in which advertisers pay a fee each time their ad is clicked. It is hugely popular with marketers, due to the impressive results it can generate. Did you know that 50% of PPC visitors are more likely to make a purchase than organic visitors? And that search ads can increase brand awareness by up to 80%? With stats like that it’s no wonder that PPC marketing is so popular.

Here you'll find our definitions to much of the jargon in the Google Ads PPC world.

This will show your ads evenly throughout the day and spread your budget, meaning you don’t exhaust it all in one go

Expands your text ads with extra information.
Links that direct the user to different pages of your site (contact, products, services)
Short additional text which should be used to show prospects how you differentiate from your competitors or to advertise any offers (free delivery, 10% student discount etc.)
Allows you to describe the range of products/services you offer
Adds your company phone number to the ad, which is clickable on mobile devices
Allows prospects to send a text message to your company number (ie. Get a quote)
Shows prospects your address, map and distance to your business. You must have Google My Business to use this extension
Shows the price of selected products and takes the prospect straight to the product page if clicked
Link your mobile App to the text ad
Highlights your sales and promotions
A group of ads that target a shared set of keywords
Where your ad is displayed in the search engine results page (SERP)
The calculation that is performed to decide where your ad position will be. Ad Rank is determined by your Max.CPC x Quality Score
How you decide to rotate your ads within a set ad group
Will, well, rotate your ads evenly
Prioritises ads that are expected to perform better than the other ads for a search term
Choose the days and times you want your ads to show. For example if you set up a call only ad you will want this to show during your opening times only
The advert that is displayed on the page

Lets you choose how much credit each click will get for conversions (customers often don’t purchase right away and will go through a journey, meaning that multiple ads and marketing channels may be used before a conversion is made)

Attribution model giving all the credit to the source of the last visit, even in a multi-visit sequence


Attribution model giving all the credit to the source of the first visit, even in a multi-visit sequence


Attribution model giving equal credit to all sources in a multi-visit sequence


Attribution model giving more credit to the clicks that happened within closer proximity to the conversion

Attribution model giving 40% of the credit each to the first and last click. The remaining 20% gets spread out evenly to all the clicks in-between

Attribution model giving credit for the conversion based on past data

The process of how Google decides which ads will show for which search terms and where they will be positioned

A report that lets you compare performance with competitors who are participating in the same auctions as you are

Show your ads to specific people based on their interests, what they are searching and how they have interacted on your site

Audiences placed into pre-defined buckets based on interest category

With Custom affinity audiences, marketers have the option to create their own, highly tailored audiences based on their most recent web activity

Shows ads who have actively been researching a product/service similar to your own

Shows your ads to people who have previously visited your website

Extensions that are automatically created by Google if they deem it relevant to improve your ads performance

Google will adjust your bids automatically dependant on your business goal

Sets your bids to get as many clicks as possible with the budget provided

Sets bids to help achieve your impression share goal across all campaigns

Sets your bids to get as many conversions as possible with the budget given at the target CPA

Adjusts your manual bids to help get more conversions

Target Return on Ad Spend. ie. Revenues generated in return for click budget invested.

Sets bids to get the most conversions with the budget provided

The average amount you have been charged for a click. This is calculated by dividing the total cost of clicks by the total number of clicks

The average position in which your ad has been displayed on the SERP

The maximum amount you wish to bid per click. The actual cost per click (cpc) will usually be lower than your max bid.

Lower or increase your bids based on where, when and how people search

Raise or lower bids for specific criteria (ie. device type, location, time of day, etc)

Where a user (or their IP) is based

The time or day you wish ads to serve

The percentage of people who click onto your web page and off again without engaging with any content

How much your choose to spend daily on your Google Ads campaigns

A type of campaign that should be based on your business goals

A campaign type where advertisers create standard text ads, responsive ads and call-only ads to be shown on Google and Google search partners sites

A campaign type where advertisers create image and responsive ads to certain audiences on the Google Display Network

An eCommerce campaign type where advertisers create product ads on Google, which consists of an image, price, description and brand name

A campaign type where advertisers create video ads on their own or within other video content on YouTube and the Google Display Network

Promote your app in search, Google Play, YouTube and the Google Display Network

A list of all the changes you have made to campaigns on your Google Ads account

The amount of times your ad was clicked

An action that you have set to track leads and the success of your campaign. This can range from a purchase to a form submission to a phone call

The percentage of clicks that lead to a conversion. This is calculated by your total conversions divided by total clicks

The actual price you pay for each click

The average amount you have spent on a conversion. This is calculated by your total costs divided by total conversions

A bidding strategy where you choose to pay per one thousand views on the Google Display Network

The same as cost per conversion. How much it has cost to obtain a conversion

Conversions that are counted when a user interacts with an ad on one device and then converts on another

The percentage of users who clicked onto your ad when it was displayed. This is calculated by the total amount of impressions divided by total amount of clicks

The maximum amount you are willing to spend on a click, which you set at ad group level

Data relating to the types of people who click on your ad (age, gender, household income)

The URL in which you are sending users to when they click onto your ad

The device type users were using when they clicked your ad; mobile, desktop or tablet

A network of over 2 million sites which run Google ads

The URL which users see on a PPC ad

The limit in which your display ad can be shown to a user in one day

A bit of code you insert onto all pages of your website that allows you to send event data to Google Analytics, Google Ads, and Google Marketing Platform

The impressions you have received divided by the estimated number of impressions you were eligible to receive

The number of times your ad was shown

Words or phrases that you choose to help determine when you will show on Google for which search queries

A tool which helps you find statistics and metrics such as search volume on keywords you are thinking of using. It also helps you choose useful close variants

Used to organise elements in your account into groups to help you filter data. Labels can be applied to campaign, ad group, ad or keyword level

An entry page in which the user lands on when they click onto your ad

Usually a form completion for a business to follow up

Choose the geographical locations in which you want your ad to be shown

A keyword that contains three or more words. Used to target more specific searches

Parameters that are set on your keywords to control which searches trigger your ads to appear

This is the default match type Google will use if you do not specify otherwise and is displayed in a campaign as a standard word with no other symbols around it. Using broad match means your ad will appear for search queries that include any word(s) from your key phrase in any order, or synonyms relating to other words that Google considers similar

With modified broad match, you put a plus sign (+) in front of one or more words in a broad match keyword. The words that are preceded by a (+) sign must appear in the users’ keyword phrase exactly or as a close variation

Phrase matching ensures your ad only displays for searches containing your keyword terms in the exact order that you provide, with other words possibly before or after. To use phrase match in Google Ads, simply type your keywords in the order you would like them to appear and use speech quotation marks at the start and end of your phrase

Exact match does exactly what it says on the tin, however it now includes very close variations of your exact keyword phrase. ‘True’ Exact Match no longer exists. To use this match type in Google you will need to type your key phrase in the exact order you want it to appear, and surround it with brackets

Google’s online dashboard where you manage your product inventory and make changes to your Google eCommerce products (shopping ads)

Words or phrases to be excluded from your matched auctions

Websites, pages or ad positions on the Google Display Network where you ads can appear. You can pick and choose where you want your ads to be shown

Google’s rating of the quality and relevance of both your keywords and PPC ads. Quality score has many factors such as ad relevance, landing page experience and CTR

Audiences based on users who have previously visited your site

All users who have visited pages that contain your remarketing tag

People who have visited your website but did not view any products

Users who have purchased from you in the past

People who viewed specific product pages on your site

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People who added your product to their shopping cart, but did not make a purchased

How much money you have made back from your advertising campaign. This is calculated by dividing the revenue generated by the total cost of the campaigns

Percentage you have made back through total investment (including any fees). To calculate this you divide your total revenue by your total costs (including any fees) and times by 100

Pieces of code that help you automate certain Google advertising processes

The percentage of impressions you are loosing out on due to budget

The percentage of impressions you are missing out on due to poor ad rank

A group of search-related websites and apps where your ads can appear

Sites in the Search Network that partner with Google to display ads

Words that a user types into the search engine to get results

The pages that are displayed by search engines when a user makes a query

One budget that is shared across multiple campaigns

This is where each ad group contains only 1 keyword


Well, there you have it! The definitive guide to Pay-Per-Click terminology! We hope you find this list useful when just starting out with Google Ads and trying to understand much of the jargon. We will be reviewing this list every now and then to ensure it remains relevant. But if you notice something amiss or requiring editing, please get in touch.

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