Key AdWords Concepts and Terms

• Click-through Rate (CTR): To measure of how well your campaign is doing, check the CTR - how often people click on your ad after seeing it. CTR on Google under 1% indicates that your ads are not targeted to a relevant audience. Look at this on the “Campaigns” tab and view the CTR of your individual keywords and ads on the respective tabs.
• Keyword Status: An “Eligible” state means your keyword is eligible to trigger ads. Clicking on the icon in the status column will give you more detail on your individual keyword performance. To view keyword status go to the “Keywords” tab and look under the "Status" column.
• Average Position: Check the “Avg. Pos.” column on the “Campaigns” tab in your account to find out where your ad is appearing on the search results page. There are up to 11 ads shown on any search page so if your average position is 11 or more your ad is, on average, not appearing on the first page of search results. You should aim to show your ad on the first page of search results so your potential customers can more easily find your ad.
• Quality Score: Each of your keywords is given a quality score which can be found by clicking on the icon in the “Status” column on the “Keywords” tab. Google rewards relevant, quality advertising with a higher position on the search page and lower costs, so making sure your ads are high quality is really important.
• Average Cost-per-click (Avg. CPC): The average amount you pay each time someone clicks your ad. Average CPC is determined by totaling the cost of all clicks and divide it by the number of clicks received.
•      Example: if your ad receives two clicks, one costing $0.20 and one costing $0.40, your average CPC for those clicks is $0.30.
• Conversion tracking: In online advertising, a conversion occurs when a click on your ad leads directly to user behavior you deem valuable, such as a purchase, signup, page view, or lead. Conversion tracking is a free way to monitor and evaluate how well your ad campaigns convert into meaningful actions like a sale.

Monthly Reporting:

• We’ll be sending monthly reports to give you updates on how the campaign is performing, strengths/weaknesses, and new optimizations we are making to the campaign.
• Quarterly we’ll also be including comments specific to your campaign & geo-specific market, showing you your performance relative to your nearby competitors.