Keywords, impressions, clicks, and ads are all easy enough to understand, but in today’s blog post we discuss more complicated terms that can make a big difference in the success of your Google AdWords campaign.
Cost Per Conversion – Sometimes referred to as cost per acquisition (CPA) or cost per lead, CPA is the amount of money you spent in order to get a conversion or a lead. So if you spent $1,000 in a month and got 10 leads then your CPA is $100. To get your CPA you must first have conversion tracking turned on and setup on your website. Without conversion tracking there is no way to determine how much you are actually paying for each lead.
Lost Impression Share – Lost impression share or “Lost IS” is the number of impressions you’ve received divided by the estimated number of impressions you were eligible to receive. Lost IS is a very valuable number to monitor because it measures how much of your target market you are reaching. If you see a high percentage under the Lost IS column then that means you are losing a lot of potential clicks due to your budget or your Ad Rank.
Ad Rank – You’ve heard of a bid, that’s how much money you are willing to pay for each click. You’ve also probably heard of quality score, which is a measurement of how relevant your ads, keywords, and landing page are to a person seeing your ad. Ad Rank is when you multiply your bid times your quality score. The higher you are willing to bid on a keyword the higher your Ad Rank. Also, your Ad Rank can be increased by raising your quality score. The higher your Ad Rank the better your ads will perform on Google. The key is to get your quality score high enough that you don’t have to raise your bids much in order to receive top ranking on Google.