If you’re just getting started with PPC advertising, you’ll quickly run into a lot of industry jargon. Don’t worry—this glossary will break down the key terms in simple, easy-to-understand language so you can run your campaigns like a pro.
1. PPC (Pay-Per-Click)
An online advertising model where you pay every time someone clicks your ad. Google Ads and Facebook Ads are popular PPC platforms.
2. CPC (Cost Per Click)
The amount you pay each time a user clicks your ad. Lower CPC usually means your campaigns are more cost-effective.
3. CTR (Click-Through Rate)
The percentage of people who saw your ad and clicked it.
Formula: (Clicks ÷ Impressions) × 100
4. Impressions
The number of times your ad is shown. This doesn’t mean someone clicked—just that it appeared on their screen.
5. Quality Score (Google Ads)
A score from 1–10 given by Google that reflects how relevant your keywords, ads, and landing pages are. Higher scores usually mean lower CPC.
6. Ad Rank
A value used to decide your ad’s position in search results. It’s based on your bid, Quality Score, and ad extensions.
7. Conversion
When a user takes your desired action—buying a product, filling out a form, or subscribing to a newsletter.
8. CPA (Cost Per Acquisition)
How much you spend to get one conversion.
Formula: Total Spend ÷ Conversions
9. ROAS (Return on Ad Spend)
A metric that measures how much revenue you make for every $1 spent on ads. Higher is better.
10. Keywords
The search terms you target in your ads. Choosing the right keywords is crucial for reaching your audience.
11. Negative Keywords
Words you add to block your ads from showing for irrelevant searches. Example: Adding “free” as a negative keyword if you only sell paid products.
12. Landing Page
The web page where users land after clicking your ad. A well-optimized landing page can drastically improve conversions.
13. A/B Testing
Running two versions of an ad or landing page to see which performs better.
14. Ad Extensions
Extra information you can add to your ad—like a phone number, site links, or location—to improve visibility.
15. Remarketing (Retargeting)
Showing ads to people who already visited your website but didn’t convert. Great for follow-ups and increasing ROI.
💡 Pro Tip: Understanding these PPC terms will help you not only communicate better with ad platforms but also make smarter decisions when optimizing your campaigns.
