✔ GOOGLE ADS

✔ PAY PER CLICK

Often referred to by the acronym PPC, it means that payment happens only when the user clicks on the ad.
For example, you launch an ad campaign on the Google Ads network that is shown 1000 times and gets 100 clicks, what you pay for is only the 100 clicks. Instead, with Facebook ad campaigns the charge also happens for the number of times it is shown, regardless of whether a click occurred or not.

✔ KEYWORDS and SEARCH TERMS

It’s the logic on which Google’s entire advertising system is based, in order to show the right ad to the right person according to the search intent, keywords or keyword or search terms that the user uses on the search engine, because relevance and consistency between what the user looks for and what Google shows is a prerequisite.

✔ LANDING PAGE

In Italian it is translated as Landing Page and it conveys the idea well because it’s the page where the user lands after clicking your ad shown by Google.

It must not be confused with a website page, the Landing Page is a single web page, which can be linked to the site but also live on its own, created with the sole aim of achieving a conversion goal.

The most common are sales pages, Sell Pages or pages for lead generation, Squeeze designed with logic different from traditional website pages, with fewer distractions and with a very specific sequence of information.

✔ KPI

English acronym for Key Performance Indicators, i.e. Key Performance Indicators. They are the set of indicators defined in advance to measure the success or failure of marketing or advertising activities.
Digital offers an invaluable advantage: being able to measure uniquely and continuously certain indicators in order to objectively assess the performance of the activity. They also make it possible to intervene along the way by making specific improvements; otherwise you would act without real awareness. There are no universal KPIs for every activity; each activity must select and monitor only those considered important. 

✔ CONVERSIONS

You can call it a conversion when the user performs a specific action defined in advance. In other words, it’s when the goal is achieved of getting the user to do what we want them to do on our landing page, whether it’s a squeeze page with the goal of capturing the user’s contact, or a sales page with the goal of selling a product or service.
 
To understand better, let’s expand the previous example:
• Impression: no. 1000 views
• Click: no. 100 clicks
• if the landing page were a squeeze page: no. 10 forms submitted, no. 10 conversions
• if the landing page were a sales page: no. 10 sales, no. 10 conversions

✔ IMPRESSION

As an Italian synonym it can be used Views, in fact it represents the number of times content is shown to users, in this case an advertisement, but it can be a video, a banner or anything else that can be displayed.
From this metric you calculate the CPM, Cost per Thousand:
total ad spend ÷ number of views x thousand

✔ CTR

English acronym for Click Through Rate, i.e. the Click Percentage the ad has obtained.
CTR is calculated:
number of clicks received ÷ number of views
 
To better understand, let’s develop the previous example:
• Impressions: no. 1000 views
• Clicks: no. 100 clicks
• CTR: 1000 ÷ 100 = 10%

✔ Average CPC

English acronym for Cost Per Click, i.e., Cost per Click, which indicates how much, on average, the click received by the ad costs.
 
It’s worth knowing that the payment system for PPC campaigns is dynamic and auction-based, so it’s possible that the click doesn’t always have the same cost and it may depend on the budget, the maximum cost set per click, the type of keywords and the level of competition density.
 
Average CPC is calculated:
total cost ÷ total number of clicks
 
To better understand, let’s develop the previous example:
• Impressions: no. 1000 views
• Clicks: no. 100 clicks
• one type of keyword gets 50 clicks at a cost of €1 (total €50)
• one type of keyword gets 50 clicks at a cost of €3 (total €150)
• Average CPC: €200 ÷ 100 clicks = €2

✔ ROI and ROAS

Regardless of the goal of the ad campaign, ROI is the metric that is always taken into account.
English acronym for Return On Investment, i.e., Return on Investment, and it shows how much ad budget invested turned into revenue, meaning how much conversions generated in economic terms.
Calculating ROI for an ad campaign aimed at direct sales is fairly immediate, while ROI for a Lead Generation campaign must consider how many contacts then purchase:
economic value generated ÷  from conversions ad budget.

To understand better, let’s develop the previous example:
• Impressions: no. 1000 views
• Clicks: no. 100 clicks
• Conversions on the direct-sales landing page: no. 10 (each worth €50)
• Ad Budget: €250
• ROI: €500 ÷ 250 = 2% (which means that for every €25 spent on ads, €50 comes back in products sold).

If it is below 1% it means the campaign is losing money because the return is lower than the cost incurred to generate it.

If you want an even more realistic indicator, you should calculate ROAS, English acronym for Return On Advertising Spend, which in addition to the ad budget takes into account all the costs incurred for the ad campaign such as the professional for copy, for graphics, or for managing the entire campaign.

Even though sponsored ads are paid, they don’t escape the idea «the more I spend, the more I get»: if the spend is misplaced, you won’t get results!

To get results with Google Ads campaigns, professional skills are needed, aimed at optimizing ad spend by taking care of all the aspects that orbit around the launch and management of a sponsored ad:

• analysis of your industry and your competitors;
•  keyword analysis, including competitors’ ones;
•  setting up the sponsored ad by defining the goal, audience, bid and budget;
• creating a landing page;
•  performance monitoring;
•  campaign optimization.

If you are a PRO user of Flazio and want to launch your first Google Ads ad campaign, contact Flazio’s Digital Team, who have reserved an amazing offer for you: we gift you 2 months of professional management of your campaigns so the entire €800 budget is allocated to advertising.