Average CPC
The average CPC is the actual cost that you pay for a click on the ad. The best way to keep your average CPC down is by having high quality ad campaigns, ads and keywords.

Bid management
The process of optimizing PPC search engine bids; based on the maximum amount you are ready to pay per keyword, to maximize Return on Investment is called Bid Management.

Clicks
The number of times a user clicks on the ad is called 'clicks'.

Click through Rate
Click through Rate or CTR is a metric that shows you the performance of your ads. The more relevant your ads, the more often users click on them, resulting in a higher CTR. The formula for calculating CTR is: Number of Ad Clicks/Number of Impressions*100

Content Network
The Google content network consists of thousands of Google's partner websites. The ads in the content network get triggered based on the content of the website or Blog. Google identifies the content of the website and matches it with appropriate keywords. Ads on the content network are not search based.

Conversion
If someone clicks on your Adwords ad, and buys something, it is known as a Conversion. Other forms of conversions are Page-views, Leads or Sign-ups.

Conversion rate
Conversion rate is the number of conversions divided by the number of ad clicks.

Cost Per Acquisition
This estimates value for your Leads and Page Views. The cost per acquisition measurement is based on the formula: Advertising cost/sales. It tells you how much your advertising costs compared to the number of acquisitions generated. Your cost per acquisition should never exceed the profit derived from each acquisition.

Cost Per Click
In the Cost Per Click advertising model, you will be charged for every click on your ad. You will not have to pay anything if users see your ad but do not click on it. Cost per click is determined by the following formula: Cost/Clicks

Cost Per Phone Call
This is the amount you pay each time a user enters their phone number and makes a call to the number displayed on the ad. CPP or Cost per phone call will not exceed the maximum CPP that you have set. The pricing depends on the positioning of your ad, the number of people bidding for the same Keywords and other factors. There is no extra charge for long distance or phone-related costs (with the exception of charges that are levied by your phone service provider if you opt for Google Adwords on your mobile phone).

Cost Per Thousand Impressions
CPM is the pricing model wherein Google does not charge the advertiser according to the clicks but affixes a cost per 1000 impressions, called CPM. This is usually found in site targeted ads.

Daily Budget
The amount that you are willing to spend for a specific Adwords campaign every day. Google Adwords shows your ad with as much frequency as possible but stays within your daily budget. When the budget limit is reached, the ads stop showing for that particular day.

Geo Targeting
In Geo Targeting, you can target your ads based on city, state or country.

Google Adwords
Google Adwords is the advertising program of Google. Through keyword based advertising, it helps you show your ads to the most relevant audience who are searching for information related to your business.

Impressions
The number of times an ad is displayed on Google or on sites in the Google Network is termed as impressions.

Image Ads
An Image Ad comprises a static graphic that you can choose to represent the product or service you are advertising. Image ads appear on select content sites of the Google network and can be created in keyword and site targeted campaigns.

Keywords
Keywords are phrases or search queries a user types in for locating a website or information.

Keyword Targeted Campaigns
This is a campaign in which an advertiser selects Keywords that will generate ads from the campaign. Keywords targeted ads can be show on search results pages, content pages and also on other properties of the Google Network.

Landing page
A Landing Page is where you site visitor reaches, after he/she clicks on your ad. It is essential that the landing page works in conjunction to your ad text. If your ad gives a brief mention about your product and its benefits, the landing page should display the product and talk about in detail so that the user's interest is sustained. The landing page should have relevant and trustworthy content and the website should be easy to navigate.

Language Targeting
In this type of ad targeting, you can set your campaigns targeted to specific languages.

Maximum CPC
It is the maximum amount an advertiser is willing to pay for a click on the ad. The max CPC and the Quality Score determine the position of the ad on Google and Google Network.

Minimum Bid
The amount assigned to a particular Keyword in your account based on the quality score. The minimum bid is the least you can pay per click for your keyword to display ads.

Optimization
Ad optimization is the process of editing Keyword, Ad Text, or adjusting other part of the account to improve the performance of your ad. A specialized field in its own, it can lower your ad's Cost Per Click without making you lose your position on the search results page.

Position preference
This lets advertisers tell Google where they'd like to have their ad to show on a particular page.

Quality Score
Quality Score is determined by the CTR of your keyword, the relevance of the text ad, the performance of the keyword so far and other pertinent factors. The quality score determines the minimum bid that you have to pay in order for your keyword to trigger ads.

Return on Investment
Also known as Return on Ad Spend (ROAS), it is used to calculate the revenue from sales minus advertising costs, all divided by the cost of advertising.

For example, if your advertising costs for the past week were Rs. 18000 and you have sold goods worth Rs.36000. As a result, you have a 100 percent ROI for the week (Rs.36000-Rs.18000) divided by Rs. 18000. ROI in terms of percentage can be expressed as: Revenue from sales-Advertising costs/cost of advertising *100

Search Network (Google )
The ads in the search network are search based. The search network of Google includes partner sites of Google. You will see a Google search bar in the search network of Google or Google's partner websites.

Site Targeted Campaigns
Site Targeted Campaigns allows Google Adwords advertiser to opt for sites from Google's content networks where they'd like to show their ads.

Text Ads
Text Ads are the most common form of ad formats. A Text Ad for Google Adwords contains three lines of text, a headline (25 characters), description line 1(1- 35 characters), description line 2(1- 35 characters) and the display URL (35 characters).