Google AdWords - Frequently Asked Questions February, 2013

What is Google AdWords?
Google's advertising system where merchants bid on keywords so their ads
will appear in Google's search results.
How to advertise with Google AdWords
Businesses can advertise on Google by registering their company with a
Google AdWords account.
What is average cost per click?
The average amount you spend each time a searcher click on your
What is CPC?
Is the amount a merchant pays for a click.?? This is generally based on the 
number of clicks an advertisement gets when it appears in search results.
How does CPC work?
The cost paid by the merchant after their advertisement is placed on a search
engine results page. Cost per click is generally determined by the number of 
clicks the advertisement receives.
What is a CPC bid?
Sets a limit on the cost per click. Brings you the highest amount of clicks 
based on your budget.
How does CPC bidding work?
CPC bidding works based on the advertisements ad rank- as result of
the maximum bid you specify for your keyword times the relevance and
usefulness of your ad to its' user.
How many times can you bid on Google auctions?
There can only be one bid placed for each advertisement but the keywords
will still be picked up for search engines based on the relevance of the
keyword in relation to the user's search.
How does CPC advertising work?
CPC advertising is a form of advertising used by companies to increase the
exposure of their products.
What is a Google auction quality score?
This is a measurement to determine how relevant and useful your ad is to the
user (components are click through rate, relevance, and landing page). The
higher your quality score, the better.
How does Google determine what you pay?
The price paid by the merchant is generally determined by the amount of clicks the
advertisement receives.
What is Google ad rank?
Google ad rank is the position of the company's advertisement on the search
engine page based on the company's maximum bid and quality score.
Ad rank vs. Quality score
The ad rank is more significant because it determines how high the advertisement will be
displayed on the page. Quality score is determined by the relevance and usefulness to the
searcher and is a portion of the advertisement positioning process.
Quality score vs. CPC
Quality score and CPC both determine the positioning of the advertisement
on the search engine results page.
What is ad position in AdWords?
The position on the search engine page results where the advertisement
appears in relation to all the other advertisements.
How to check Google ad ranking
It is best utilize Google analytics to check your ad ranking or do a general
search for your product on Google.
CPC vs. Actual CPC
CPC is the merchant's general or average cost per click based on the maximum bid compared
to how many clicks the advertisement receives day to day. Actual CPC is different because it is
determined by the actual rate per click. Actual CPC is usually less than CPC.
What is Actual CPC?
Actual CPC is the amount a merchant pays each time a searcher clicks on
their advertisement.?? This number is always lower than the maximum bidding
How does AdWords calculate Actual CPC?
Actual CPC is calculated by dividing the ad rank of the competitor below them
by quality score plus $.01.
What is Google's display network?
Google's display network shows sponsored advertisements along with the
general search engine results and provides demographic targeting.
What ads are on a Google display network?
Sponsored ads have more of a dominant presence and are displayed along
with free advertisements. Google display networks also fully support all ad
What are alternative bidding methods?
Alternative bidding methods include CPM and CPA.
What is CPM bidding?
CPM bidding is based on impressions and can be used alongside CPC
CPC is the cost based on how many clicks it receives whereas CPM is the
cost based on how many impressions it picks up. Both methods can be used
at the same time.
What is cost-per-acquisition bidding?
CPA is the cost based on how many searchers purchase, subscribe, etc to
their product or service based on the online advertisement.
How does CPA work?
Once a user has clicked on an advertisement, the cost can be registered
based on the user's action on the site. If the user purchases a product or
subscribes to a service, then the cost is applied to the advertisement.
How does CPA marketing work?
Marketing to a specific target group that is known to act on the
advertisements they view.
When you use conversion optimizer and bid to a CPA, Google is determining
your max CPC bids for you based on historical conversion data, and is
attempting to hit either the average or max CPC you've set.
CPM and CPA go hand in hand because they are both based on impressions,
only one is more specific than the other. With CPM impressions the user
browses the site and clicks on links within the site, with CPA rather, the user
then takes that next step and subscribes to the product. Both methods are
used to fine tune the target group.
What are keywords?
Keywords are a general concept put together into a few words that are
specific to a company. Keywords are used by companies to target groups that
would be interested in their products.
How do keywords work?
When a searcher is looking for a product, typically the search is generalized,
for example, search terms are ???running shoes???, not ???Nike Women???s Cross
Country Trainers???. The merchants gives search engines preset keywords
and the search engine ???decides??? whether or not to display your advertisement
based on relevance.
How does a keyword search work?
In a keyword search the search engine separates advertisements and will
rank particular advertisements based on how accurately it applies to the
searcher. The algorithm is programmed to process requests to searchers
based on keywords.
How does Google determine search results?
Google determines search results based on keywords used by merchants as
well their CPC and ad ranking in relation to the requested search by the user.
How to get your Google ranking up?
The best way to rank higher is through search engine optimization.
What is search engine optimization?
Search engine optimization is improving the visibility of your site or page
within a search engine results page through natural searches. This can be
done in many ways, including improving keywords within your content so that
a search engine can find and display your site accurately and quickly.
How does SEO work?
Many SEO strategies focus on keywords within your website???s content so that a search
engine can find and display your site faster and with more accuracy.
What is an ad group in Google AdWords?
An ad group is a series of keywords, ads, and bids that are an essential part
of how information in a Google AdWords account is organized.
How do ad groups work?
An ad group consists of one or a few advertisements, keywords, placements,
or other methods used by merchants to target their product market. It is
beneficial to create individual ad groups for individual products.
What is ad relevance in AdWords?
Ad relevance is a keyword status that measures how related your used
keyword is to your advertisements as well as how such keywords match the
message of your ads.
What is a conversion optimizer in AdWords?
Guarantees that your advertisements are displayed more frequently in
situations where you are likely to gain more conversions.