Get familiar with Google AdWords

INTRODUCTION
The purpose of this article is to discuss the technical aspects of AdWords, i.e. key terms you need to know, and exactly what to do to make your AdWords ads effective.

ADWORDS TERMS
Below is a list of basic terms you should know before using Google AdWords. If you’re going to be using AdWords, you need to be familiar with all of these terms.

1) Cost Per Click (CPC)
As the title implies, this is the amount you’re going to pay every time someone clicks on your AdWords ad. Different keywords are going to cost you different amounts for clicks depending on their popularity. The articles mentioned above discuss how to determine some cheaper keywords.

2) Impressions
This is the number of times your ad appears in the search results in Google. Your ad will be triggered to make an impression when someone searches for one of your keywords. Your ad won’t necessarily make an impression every time someone searches for one of your keywords, depending on your competition, i.e. how many other people are also using your keyword in their AdWords campaigns.

3) Clicks
The number of times someone has clicked on your ad.

4) Click Through Rate (CTR)
Your CTR will be used by Google to determine how successful, and hence with Google, how relevant your ads are. Your CTR is the number of times someone has clicked on your ad, divided by the number of impressions it has (your ad is less relevant to Google if it has appeared many times, but no one is clicking on it). Your CTR is extremely important.

Google will reward you for relevancy; Google will give you better placement for less money, the better your CTR. Your goal in AdWords is essentially going to be to improve your CTR; this is going to be dependent on the quality of your ad. First and foremost, you want your keyword in your ad title.Secondly, you just need to write quality ads; that is, ads that are going to attract readers’ attention.There is a lot you can learn about this in Perry Marshall’s Definitive Guide to Google AdWords. You can dramatically improve your CTR however by split-testing your ads.

The exact formula Google uses to determine an ad’s relevancy isn’t known exactly by anyone. For example, Google will also use variables such as how long the average person stays on your page, or how relevant your page actually is to your ad (so make sure the content you’re advertizing is exactly what you’re linking to).