AdWords in plain English

Friday, February 29, 2008 | 9:37 AM


You'll likely come across a lot of new terms and acronyms while managing your Google Grants AdWords account, and while you can always access the full AdWords glossary of terms, we wanted to explain a few of the most common right away, and give some insight into how they affect your account.

Daily Budget
This is the maximum amount your account can spend in a single day. All Google Grants accounts are set at $329/day ($10,000/month), unless your organization has applied for and been awarded an increased budget. If your account is continually reaching your daily budget, you may be eligible for an increased budget. You can read more about the requirements and application process and apply for an increased budget by submitting an application online.

This is the most your account will be charged any time someone clicks on your ad. For all Google Grants accounts, the CPC is set to a maximum of $1. You can set your CPC at any amount up to $1 per keyword. Remember that even though your account will be accruing clicks, you will not be charged any amount as a participant in the Google Grants program unless you apply for and receive a higher daily budget as a participant in our Additional Services program.

Click-through Rate. This percentage is the number of clicks your ad has received divided by the number of times your ad has shown. You can see the CTR for each keyword and ad creative, as well as average CTRs for your campaigns, ad groups and account. Keeping an eye on these CTRs is a good way to track the performance of your keywords and ads. A low CTR (below 1%) for a keyword can indicate that a term is too broad for your target audience and could be improved by making it more specific or by adding matching options. A low CTR for an ad creative can indicate a less relevant message and can be improved with a stronger call to action or with a more concise message.

As you manage your online advertising accounts and come across new terms and acronyms don't forget to tap into the expertise of fellow Google Grants advertisers in the Google Grants Help Group. You can also view our newest online trainings to get you off on the right foot and help you make the most of your Google Grant. For a quick introduction to your Google Grants account click here to view the training. If you're ready to move on and learn more about navigating your Google Grants AdWords account, click here for a detailed walk through of a Google Grants account.