Basic AdWords Terminology
Cost-per-Click (CPC)
CPC is one of the pricing models available to users. Under the CPC pricing model, you are charged for each click your ads receive. You will not incur costs if your ad is displayed for a search query and users don’t click it.
Clickthrough Rate (CTR)
Your CTR is a form of measurement that assists in showing how your ads are performing. The more relevant your ad, the more often a user will click on the ad which will result in a higher CTR. AdWords calculates your CTR as follows: Number of ad clicks/number of impressions x 100.
Quality Score
Quality Score is a form of measuring to assess the quality of your ad and keyword . The quality score is used in determining your CPCs. Quality Score is determined by your keyword’s CTR, relevance of your ad text, historical keyword performance, and other factors. The better your Quality Score, the lower price you’ll pay per click.
