This AdWords glossary contains some of the most common Google AdWords terms and PPC definitions.

Ad Campaign: A set of ad groups that contain ads, keywords and bids. You can have one or multiple ad campaigns.

Ad Group: A set of keywords, ads, bids, placements and targeting methods. Each ad campaign contains one or more ad groups.

Ad Extensions: A feature that allows you to display extra information about your business in your ads, such as address, phone number, additional site links, reviews, product images and more.

Ad Rank: Calculate by your bid amount and Quality Score, ad rank is a value determined by Google that determines the position and location on a page where your ads are shown.

AdSense: A Google program wherein website owners are paid for showing relevant AdWords ads on their site.

AdWords API: This Application Programming Interface allows advertisers to interact with and edit their AdWords account through applications they create.

AdWords Editor: A free tool that allows you to manage your AdWords account offline and make large-scale changes at one time.

Average Position: Or (Avg. Pos.), this AdWords metric shows how your ad ranks against other ads. This determines the order in which ads appear on a page.

Audience: Also known as remarketing lists, audiences are groups of people you would like to exclude from targeting in your remarketing ad campaigns. They are used in place of keywords for your remarketing ads.

Automatic Bidding: A type of bidding wherein AdWords automatically sets and adjusts your maximum bids.

Automatic Placement: Websites and other places where your ads can appear that are automatically matched to your keywords. Automatic placements are available only on the Display Network.

Auto-tagging: This feature creates custom destination URls automatically. This helps you track the performance of your ad when using tracking programs like Google Analytics.

AdWords: Google’s pay-per-click program where PPC managers can create their own ads using keywords of their choosing.

AdWords Express: Google’s abridged version of Google AdWords designed for local businesses that aren’t as skilled in AdWords.

Bid: The maximum amount you are willing to spend per click for ad groups or individual keywords.

Bid Management: Managing bids in an attempt to lower your minimum bid through effective keyword grouping and optimization.

Bounce: When someone lands on a webpage and leaves the website without first visiting another page.

Broad Match: A keyword match type that uses “+” in front of keywords to tell Google to show your ads for related searches, synonyms and relevant variations of your keywords.

Broad Match Modifier (BMM): A keyword match type that uses quotations around certain words in a keyphrase in order to target searches for close variations, but not synonyms or related searches for a given keyword.

Conversion: When someone clicks on your ad and completes a desired action, such as a purchase or sign up.

Conversion Optimizer: A feature in AdWords that predicts which clicks are likely to be valuable, adjusting your bids to help you maximize your number of profitable clicks.

Conversion Rate: The number of times your ad resulted in a conversion.

CPA: Cost-per-acquisition is the cost of your total ad spend divided by the number of conversions.

CPC: Cost-per-click is a type of bidding wherein you pay for each click on your ads. You specify your CPC bids depending on how much you are willing to pay for each click your ad receives.

CTR: Clickthrough rate is calculated by dividing an ad’s impressions by the number of clicks your ad receives.

Customer Lifetime Value (CLV): A prediction of the net profit a company will receive over the entire future relationship with a customer.

Daily Budget: A dollar amount you choose for each ad campaign to tell Google how much you want to spend each day.

Description Line 1: After the headline, this is the first line of text in your ad. You can enter up to 35 character in Description Line 1.

Description Line 2: The second line, after description line 1, of text in your ad. You can enter up to 35 character in Description Line 1.

Display Network: One of two networks (the other is Search Network, see below) on which you can show your ads. You can create text, image, animated and video ads that will appear on millions of websites, videos and apps.

Display URL: The webpage that is tied to your ad, typically shown in green text. For each ad you create, you will specify a destination URL, the page someone will land on after clicking on your ad.

Dynamic Keyword Insertion: After inserting a special piece of code into your ad text, AdWords will automatically replace the code with the keyword that fired your ad.

Enhanced Campaigns: A Google AdWords feature that allows advertisers to manage bids from a single campaign across devices, locations and time of day, edit ads for various user contexts and track calls and application downloads as conversions.

Exact Match: A keyword match type that uses brackets to tell Google to show your ads for the exact keyword and close variants of that exact term.

Google Analytics: A free Google program that provides in-depth reporting and metrics on how people use your website, including information about what they do after clicking on your ads.

Google Forwarding Phone Number: A unique phone number provided by Google that you can use in your AdWords ads to track phone calls to your business.

Headline: The very first line of your ad, and the one potential customers will likely notice first. You can enter up to 25 characters in your headline.

Headline, Extended: Adding a period in your headline will extend it by 35 or more characters. It will also place display this ad copy as a hyperlink and will extend your headline. As you’re typing your headline copy with the period, you will be able to see a preview of your ad. Sometimes, the extended headline will show your company name or phone number.

Impression: The number of times your ad is shown. An impression is counted every time your ad is shown on a SERP or other Google Network site.

Impression Share: Or (IS), this is the number of impressions your ads have received divided by the estimated number of impressions you were eligible to receive.

Keyword(s): Or KW(s), these are word or phrases you select that are highly relevant to your product or service to help determine where and when your ads appear.

Keyword Match Type: A group of five keyword settings that help determine how closely a given keyword needs to match a search query in order to fire your ad.

Keyword Mining: The process of searching for relevant keywords for your ad groups.

KPI: Key performance indicators are metrics used to help a company define and measure its progress toward certain goals.

Landing Page: The webpage where people who click your ad will be taken after clicking on your ad. This page is typically the same one entered into your destination URL.

Location Targeting: A setting in AdWords that helps your ads show to customers in geographic locations you specify.

Low Search Volume: Keywords with this status have very little or no search history on Google. These keywords will be inactive until its search traffic increases.

Managed Placement: An option on the Display Network, a managed placement are the locations that you specify where you want your ads to appear.

Manual Bidding: A type of bidding wherein you choose, set and adjust your maximum bid amounts.

Negative Match: A keyword match type that prevents your ad from firing for a certain word or phrase.

Negative Placement: Locations you specify where you do not want your ads to appear.

Phrase Match: A keyword match type that uses quotations to allow your ad to appear only when a search query includes the exact keyword phrase, or close variations of the exact phrase of your keyword, and possibly additional words as well.

Placement Tool: This AdWords tool helps you find websites and other placements where you might want your ad to show.

PPC: Pay-per-click is an online advertising model wherein an advertiser pays a publisher (e.g. Google AdWords) each time someone clicks on their ad.

Quality Score: A key metric that tells you how relevant your ads, keywords and landing page are to someone who sees your ad.

Remarketing: A feature on the Display Network that allows you to reach people who have previously visited your website.

ROI: Return on investment, in terms of AdWords, is the amount of money you make less the amount you spend on ads. This figure can also be negative.

Search Network: One of two networks (the other is Display Network, see above) on which you can show your ads. You can create text ads that can appear on and Google search partner sites, like and

SERP: The search engine results page is the listing of webpages returned by a search engine in response to a keyword query.

Split Test: Creating a new ad based on a winning ad with a slight variation to see which performs better.

SQR: The search query report shows the exact terms and phrases someone entered into a search engine before they clicked on your ad.