Chapter 1.b: Let's get familiar with few basic terms before going in-depth.

Every advertiser or any individual who is interested to know about Google Ads or manages Google Ads account must be aware of some basic terms like: Search Network, Display Network, Search term, Keyword, Impression, Click, Ad Rank, Quality Score, Conversion, Budget, Bid, Campaign, Ad Group, Ad, Final URL/Landing Page and few more.

Now, let's understand these one by one.

1) Search Network: Search Network is a group of Search engines where we search for something. Google shows Ads on Google Search engine(google.com) and Search Partners. Search Partners are the search-related websites where the ads can appear, like the non-google websites. However, an advertiser has the option to opt out of showing the Ads on Search Engines/sites other than Google.com.

2) Display Network: Display Network is a group of websites and apps where Ads can be shown. It includes websites, apps, gmail, videos, mobile devices etc.

3) Search Terms: Search terms or Search queries are the the words or phrases used by people to search for something. For example, if we go to Google.com and search for What is Google Ads then "What is Google Ads" will be known as the search term.

4) Keywords: Like we discussed earlier, Keywords are the words or phrases that describe the products or services. These are entered by the advertisers and these can be any relevant words for which they want to promote their Ads. For example: If I sell fruits online, my keywords can be: fresh apples near me, imported apples, red cherries online etc because these are few products that I am selling and want to show my Ads when someone is searching for these or related terms. An Ad is triggered when the search term matches with a keyword. For example, if my keyword is 'red cherries online' and someone is searching for fresh imported cherries near me' then my Ad is eligible to be shown. So remember Keyword is a very very important part.

5) Impression: Every time an Ad is shown, it gets an impression. It is just like showing up of an Ad. Like when we search for something and we see a list of Ads, each Ad gets an impression because it is shown.

6) Click/Interaction: Click is when you click on an Ad or when you interact with an Ad. Like you search for something and see few Ads, each of them gets an Impression and whichever Ad you click on gets a click. After a click, you are landed to the website.

7) Final URL: Final URL is also known as the landing page or vice versa. It is the URL of the page where we go after we click on an Ad. It may be a home page or a sub page of that site. It depends on which final URL has been set by the advertiser. Final URL should always be relevant to the Ad. For example, if an talks about fresh roses, the final URL should take users to the red roses page instead of taking them to the home page.

8) Click Through Rate/Interaction Through Rate: This shows how many impressions actually turn into a click and how many people end up landing to a website after clicking on an Ad. So the formula is: Clicks upon Impression into 100. Clicks/Impressions*100. For example, if you had 5 clicks and 100 impressions, then your CTR would be 5%. This metric can be checked to get an idea of how good the Ads and Keywords are performing.

9) Conversion: Conversion can be any valuable action taken after clicking on an Ad. It can be a purchase, a sign up, a phone call, an app install etc. Google tracks website conversion through Conversion tracking code which we will cover in upcoming chapters.

10) Ad: Ad is what comprises of headlines, description, final URL, Display path. It is the actual result which people see when they search for something. It should always be relevant to what the person has searched for.

11) Quality Score: Quality score is all about Relevance. It is an estimate of how relevant an Ad is to a person who is seeing the Ad. Relevant Keywords, Ads and Landing pages make a better Quality Score and it is assigned to Keywords. The factors determining Quality Score are: Ad Relevance, Landing page experience and Expected Click Through Rate. Always remember, higher the Quality score is lowering would be the cost per click and higher would be the Ad position/Ad Rank.

12) Bid: Bid is the maximum amount that an advertiser is willing to pay for a click.

13) Budget: Budget is the maximum amount an advertiser is willing to spend per day. To calculate the monthly average budget, we have to multiply the daily budget by 30.4(average days in a year). For example, if my daily budget is $10 then my monthly budget is 10*30.4=304.

14) Ad Extensions: Extension is an extra/additional piece of information with an Ad. Extension shows more details about the product or service. We have a list of extensions available that we will discuss later.

15) Ad Rank: Ad Rank determines the Ad position and is based on three factors- Bid, Quality Score and Impact of Ad Extensions/Ad Formats.

There are other terms pending. Let's understand these first and then move forward.