What Are Conversions in Google Adwords? Key Terms To Know

ad group testing

Watch this video on YouTube.

Here are the basic Google Adwords terms you’ll want to be familiar with.

First and most important – Conversions. A conversion is a sale or a lead. It is whatever key action you want taken. Usually a conversion is counted by a visitor reaching a specific page on your website. For example, for my Udemy courses when someone reaches a success page after making a payment then a conversion is counted.

conversions definition

These are 143 conversions counted that went through and reached the payment success page. A code on that page sent back information to Google Adwords that a person that clicked on the ad reached that page. Most critical terms in Google Adwords is conversions because the reason you’re doing Google Adwords is for conversions. All these other terms are only relevant as far as you getting conversions. Unless you’re doing a branding campaign and just trying to get people on your website, you want conversions.

cost per conversion

This tab is the cost per conversion. The cost per conversion is the cost of all the ads that were ran divided by the cost of all the conversions that were received.  I’ve spent $2822.93 showing ads and got 143 conversions. This conversion rate is the percentage of clicks that turn into conversions. A click is where someone clicks your ad when they see it in search.

A campaign is the basic advertising unit in Google Adwords. When you want to get started with Ads you will click on create a campaign. I have two campaigns up. The main thing that happens on the campaign level is setting a daily budget, the type of campaign, and how you want to collect data.

The ad group level groups your ads together within a campaign. You can set a cost per click bid at the ad group level. The ad group is just a collection of ads. Within each ad group you can have a different level of sale or a different URL.

ad group click

You can see I test things at the ad group level. For example, I tested $25 sales and I tested $9 sales at the ad group level. They are in the same campaign, but I noticed that the cost per conversion is twice as much so I went with a nine dollar sale. You’ll see how I get to that conclusion based on the data. You can control the bid by ad group also. At the lowest ad level, you can see by the green light that the ad is either enabled, paused, or deleted. You want things enabled that are running and you want things paused that you want to keep and run later. You would want things removed that you never want to fun again or use.

When I click on the ad group I go one level lower. The ad group is one collection of ads. You can see my ad group here

ad group testing

The ad group is simple a collection of ads and keywords that are specific to the campaign. You can do audience for remarketing specific to the ad group. What you’ll notice on most of the settings are done at the ad group level.

A click in Google Adwords is when a user clicks on your ad. That might sound simple enough, but it might not be so simple when you start interacting with other terms. An impression is counted each time your ad is actually shown. You need impressions to get clicks. Every time Google shows your ad, that’s an impression. Every time a userclicks on it, you get your click through rate.

The way you get cheap clicks on Google is to have a good click through rate. I’m only paying 0.28 for each click because I have a 6% click through rate and Google is happy with that. What you get from your cost is your average cost per click. Each click has a cost and that’s how you pay Google for each click. You pay every time someone clicks on the ad and then you have your total cost per the clicks. Every click has a cost. You can make a bid and lots of times you will get clicks for lower than your bid and your average cost is what you’re paying on average.

Your position is how high your ad is showing on Google. The top position is 1 so 1.1 ad position is excellent. On the display network, most of your ads will show high. You want your ads to be able to show in a higher position.

Those are the basic terms that you want to know for Google Adwords moving forward. I will show you some more detailed terms of keywords and settings to help you get more comfortable in the interface.

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