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CPC, CTR, Relevancy, Quality Score, and Google Slap are 5 key concepts that help form the foundation of Google AdWords. Even though there are a ton more to AdWords than these 5 concepts, they are a good place to start. Master these important Google advertising concepts or else!

CPC – Cost Per Click This is simply how much you to pay when someone clicked on your ad. This number can range anywhere from as little as a cent or two, to ten dollars a click and up. The competitiveness, the market, and how much Google perceives a market to be worth affect how much you should look at paying per click. How much you bid for every click influences the position of your ad. All else being equal, the higher you bid, the higher your ad appears.

Click-through-rate (CTR) is defined as the percentage of your ad impressions that actually turn into clicks. So if your ad shows up 20 times and it gets clicked on 5 times, you have a CTR of 5/20 = 25% (which is very good by the way) Why should you and Google care about this? CTR is one way of demonstrating how good of a marketer you are. Those who have lots of money can afford to pay for the top rankings (yaye for Google) and those who are able to write very targeted and relevant ad can get clicks (yaye for Google again since then their end users are happy).

Quality Score ” In other words, what Google thinks of your keyword. And what do I mean by that? It means whether Google likes your keyword in your campaign being used in the manner you are using it. This quality score is reported to you from a scale of 1 to 10. With 10 being Google loves it and 1 being Why the heck are you using it? You of course want to shoot for a high quality score to keep Google happy ” lest you get Google Slapped which well talk about in a bit.

Relevancy. Okay, relevancy has become a bigger and bigger deal over the past few years. Google and other PPC engines wised up when they noticed spammers abusing their system (back in the days when CPC for all keywords were dirt cheap). Spammers were bidding on ridiculous terms like Disneyland and directing the traffic to their mature audience only websites. Thats a big no no. So now the ppc engines study your ads, keywords, campaign, landing pages, and a whole slew of other factors in determining if your advertisement is relevant to the audience its targeting.

Google Slap is defined as, What Google does to you/your AdWords campaign when you anger it. And what would make you anger the almighty Google? When you do a disservice to its end-users (the internet browsers who use Google as their main form of browsing the internet seeking for information). When Google Slap happens, you see your minimum bids on your keywords go up drastically (upward of $10 a click and up). Dont let this happen to you. Stay relevant to your market.

This is by no means a comprehensive guide to Google AdWords, far from it as a matter of fact. What you have just been exposed to is but the tip of the ice berg. Think of Google as made up thousands of individual matters each matter, well, matters! Each by themselves may not do a whole lot of noticeable difference but when you tally them up, you will. So keep these 5 matters in mind and keep on studying more.