10 TERMS TO KNOW ABOUT SEARCH ENGINE ADVERTISING – Part 2

In our previous article, we started explaining the mains terms to know in order to understand the process of Search Engine Advertising (SEA) and to help you to create great advertising campaigns.

Previously, we saw the terms Targeting, Landing Page, Bid and Impressions. If you missed them, you can go take a look here - LINK

Like the previous article, we will use the Google AdWords platform as a reference, which is the most used platform.

 

5. Quality Score

In the process of SEA, there is a rank for all the ads published. This means that when a user is typing a keyword in the search engine, all ads will be displayed according to a rank. The position of your ad will depend on your Quality Score and not just on the bid (amount of money you are willing to pay). The quality score is marked on a scale from 1 to 10, 10 being the best. This score is composed of 3 elements: expected click rate on your ad, the relevance of your ad and the quality of your landing page.

Having a good quality score allows you to decrease the cost of your ads and improve your position.

 

6. Campaign

When you create a campaign in Google AdWords, you have the possibility to organize your campaign by ad group. An ad group contains ads, keywords and bids. These ad groups share the same budget and targeting. These ad groups allow you to organize your campaign by product or service range. Your AdWords account can contain one or several campaigns and each campaign can contain one or several ad groups. To clearly see the structure of an AdWords Campaign, you can go to Google Support.

 

7. Click Through Rate

The Click Through Rate (CTR) is a measure of the number of clicks on your ad divided by the number of impressions of your ad, or how many times your ad was seen.

The CTR Is a good indicator to know how your keywords and your ads are performing. The CTR is one of the best indicator to know if people are clicking on your ads. It also allows you to improve your ads by knowing what is working or not.

 

8. Cost Per Click

The Cost Per Click (CPC) is a billing option. It corresponds to the maximum amount you are willing to pay for one click on your ad. A higher CPC will usually help you get a higher position in the ad rank.



9. Cost Per Mille

The Cost Per Mille (CPM) is a billing option which allow you to pay for every thousand impressions of your ad. This billing option is only available on the Display Network. A derivative exists which is called vCPM. vCPM is the same principle as CPM but you will only pay for the viewable impressions. This is a better option because some ads can be marked viewed, but they were not visible by the viewer because the ads were at the bottom of the page (below the fold). To be counted as visible with vCPM, the viewer has to spend more than 1 second on the screen where your ad is displayed. There is also the eCPM (CPM effective), which allows you to compare the CPC and CPM campaign when they challenge each other on the Display Network.

 

10. Cost Per Action

The Cost Per Action is a good billing option to obtain action on your website. You only need to define which kind of actions you are expecting from your campaign. Possible actions could be a subscription to a newsletter, filling out a form, a social share, getting an estimate, a purchase, etc.

With the CPA, you set how much you are willing to pay for one visitor doing an action on your website.


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