PPC Glossary — 64 Google Ads Terms

Aliases: Google AdWords

The original name of Google's advertising platform from 2000 to 2018, when it was rebranded to Google Ads.

AdWords was Google's name for its PPC advertising platform from its launch on October 23, 2000, until July 24, 2018, when Google rebranded it to Google Ads. The platform itself is identical — same auction principles, Quality Score, keyword bidding, RSA — just a newer name and modernized feature set. Older agencies and marketing professionals in B2B/enterprise contexts sometimes still use 'AdWords' out of habit.

Aliases: Microsoft Ads · Microsoft Advertising

Microsoft's PPC platform, renamed to Microsoft Advertising in 2019, serving ads on Bing, Yahoo, and DuckDuckGo search.

Bing Ads (now Microsoft Ads / Microsoft Advertising) is the second-largest PPC platform in the western world. It covers 5-12% of search market share globally (higher in UK and US). CPCs are consistently 30-50% lower than Google Ads due to less competition, and the audience skews 8-12 years older on average with higher disposable income. Exclusive advantage: LinkedIn targeting through Microsoft's LinkedIn acquisition.

Aliases: Cost Per Click · Cena po kliku

CPC (Cost Per Click) is the amount you pay Google each time someone clicks your ad.

CPC is the fundamental billing model for Google Ads Search campaigns. You don't pay for ad impressions, only for clicks. Your maximum CPC bid combines with Quality Score through the Ad Rank formula to determine your ad position in the auction. Typical CPCs: Serbia eCommerce 0.13-0.42 EUR, UK £0.40-£1.50, US $1-$5.

Aliases: Cost Per Mille · Cost Per Thousand Impressions

CPM (Cost Per Mille) is the price for 1,000 ad impressions — billing model for awareness campaigns (Display, YouTube, Shopping).

CPM is used when reach is the goal, not direct click-response. You pay per 1,000 impressions regardless of whether the user clicks. Common in brand awareness, video campaigns (YouTube bumper ads), Display banner formats. Typical CPMs: Serbia Display 0.40-1.70 EUR, YouTube 0.85-4.20 EUR.

Aliases: Cost Per View

CPV (Cost Per View) is the billing model for YouTube video ads — you pay only when a viewer watches 30+ seconds or clicks.

CPV is exclusive to TrueView skippable video formats on YouTube. A 'view' counts as watching 30 seconds (or the entire video if shorter) or clicking the ad. CPV in Serbia is remarkably affordable — 0.004-0.013 EUR per view, making it the cheapest awareness channel per qualified attention unit.

Aliases: Click-Through Rate · Click Through Rate · Procenat klikova

CTR (Click-Through Rate) is the percentage of people who click an ad after seeing it. Formula: (Clicks ÷ Impressions) × 100.

CTR is one of the most important quality signals in Google Ads — it accounts for about 40% of the Expected CTR component of Quality Score. Higher CTR = higher Quality Score = lower CPC for the same position. Caveat: high CTR isn't always the goal. High-converting CTR is. A very broad CTR with poor conversion may mean ads are attracting the wrong audience.

Aliases: Prikazi · Impression

An impression is every time an ad is shown to a user — on the SERP, Display Network, YouTube, or partner sites.

An impression is counted once per ad render, regardless of whether the user sees or scrolls past the ad. Key reach metric and the denominator for CTR (clicks ÷ impressions). Note: Google Ads defines impression differently from GA4 — GA4 counts 'engaged impressions' which require additional scrolling or pause.

Aliases: IS · Deo prikaza

Impression Share (IS) is the percentage of total available impressions your campaign received. If it's 80%, you missed 20% of potential impressions.

IS is a key diagnostic metric. It consists of 3 components: Search IS (actual), Lost IS (rank) — lost due to insufficient Ad Rank, Lost IS (budget) — lost because the campaign hit daily budget. If you have 60% Search IS and 40% Lost (budget), the fix is to increase budget. If 40% Lost (rank), the fix is improving Quality Score or raising bid.

Aliases: Klik

A click is a user interaction with an ad — clicking the headline, image, sitelink, or call extension — that triggers a billable action.

Not every click is a 'qualified' click. Google filters 'invalid clicks' (bot traffic, duplicates, accidental clicks) and doesn't charge for them. Sitelink clicks, call clicks (on mobile), location clicks also count if billable. GA4 records 'session start', which doesn't always match 1:1 with Google Ads clicks (attribution delay, JavaScript issues).

Aliases: Search Engine Results Page · Stranica rezultata pretrage

SERP (Search Engine Results Page) is the page Google displays in response to a query — a mix of paid ads, organic results, AI Overview, and rich features.

The modern SERP (2026) is no longer linear. It consists of: Shopping Ads carousel (top), Search Ads (top 4), AI Overview (AI-generated answer with sources), Featured Snippet, People Also Ask, Image pack, Organic top 10, Shopping Ads (bottom), Related searches. For PPC advertisers, the top 4 Search Ads slots are most valuable, but AI Overview is increasingly capturing traffic.

Aliases: Licitiranje · Licitacija

Bidding is the auction process in Google Ads — the maximum you're willing to pay per click, conversion, or 1,000 impressions.

Every time a user enters a query matching your keywords, a real-time auction fires. Your bid combines with Quality Score to calculate Ad Rank, determining your position. You don't pay your max bid — you pay only as much as needed to beat the next position (+ $0.01). Two main approaches: Manual (you control bid) and Smart Bidding (AI auto-adjusts by goal).

Aliases: Google oglasi · Google oglašavanje

Google Ads is Google's PPC advertising platform — the current name since 2018. It covers Search, Display, YouTube, Shopping, and App campaigns.

Google Ads holds about 92% of the global PPC market. It reaches 4.3+ billion users daily through Google Search, YouTube, Gmail, Google Maps, Android apps, and 2+ million partner sites. Minimum starting budget in Serbia is 200-400 EUR/month for Search campaigns, 400-800 EUR for multi-channel PMax strategies.

Aliases: Google Ads Partner · Premier Partner

Google Partner is an official status Google grants to agencies that meet spend, certification, and client-performance requirements on the Google Ads accounts they manage.

The status is granted through the Google Partner program and re-checked monthly. It requires a minimum spend managed by the agency in the past 90 days, valid Google Ads certifications for at least 50% of staff working on accounts, and satisfactory performance (account growth, optimization). Premier Partner is the higher tier, reserved for roughly the top 3% of agencies by market. The status is NOT a quality guarantee - it measures activity and spend, not necessarily client results - but it's a useful filter when choosing an agency since it rules out complete beginners.

Aliases: LP · Landing stranica · Prodajna stranica

A landing page is the page a user reaches after clicking an ad - designed to match search intent and drive one clear action (purchase, form, call).

The most common mistake for local businesses: sending all Google Ads traffic to the homepage instead of a dedicated landing page that matches exactly what the user searched for. A good landing page has: one clear CTA (not 5 options), keyword match with the ad (relevance), fast mobile loading (LCP under 2.5s), and minimal friction to conversion (short form, visible phone number). Landing page quality directly affects Quality Score through the Landing Page Experience component, and indirectly affects CPC.

Aliases: Manuelni bidding · Manual bidding

Manual CPC is Google Ads' oldest bidding strategy — you manually set max bid per keyword, with no AI optimization.

Manual CPC offers the most control but requires active management. Relevant in 2026 only for specific cases: new accounts without conversion tracking (until data accumulates), extremely small budgets (<$100/mo), test campaigns, or brands with strict no-AI-automation policies. For 95% of accounts, Smart Bidding strategies outperform it.

Aliases: eCPC · ECPC

Enhanced CPC (eCPC) is a hybrid between Manual and Smart Bidding — you set a base bid, and Google adjusts it ±30% in the real-time auction based on conversion likelihood.

eCPC was popular 2015-2020 as a 'safe stepping stone' from Manual to Smart Bidding. In 2026, it's deprecated for most use cases — Google recommends direct migration to tCPA or Maximize Conversions. It remains relevant for Search Partners and Display campaigns in new account beta phases.

Aliases: Max Clicks

Maximize Clicks is an automated bidding strategy that spends your daily budget to get the maximum number of clicks — without optimizing for conversions.

Used for awareness campaigns, new accounts without conversion tracking, or test phases when you need to accumulate keyword data. Often combined with a 'Max CPC bid limit' to prevent Google from overpaying for spam clicks. In 2026, most accounts replace it with Maximize Conversions (without tCPA target) as a more efficient signal.

Aliases: Max Conv

Maximize Conversions is a Smart Bidding strategy that uses AI to spend budget to achieve the maximum number of conversions — without a strict tCPA target.

The best first Smart Bidding strategy for new accounts because it doesn't require a minimum conversion count. Google automatically bids 'as much as needed' to win each conversion within the daily budget. After 30+ conversions/month, consider moving to Target CPA or Target ROAS for tighter cost control. Tip: don't cap CPC bids in the early phase — it stifles AI signals.

Aliases: Max Conv Value

Maximize Conversion Value targets the highest total revenue (conversion value), not just the number of conversions — used for eCommerce with varying AOVs.

Requires conversion value tracking (revenue imported from GA4 or directly from the Google Ads tag). Ideal for eCommerce where average order value is variable ($30 to $300). Differs from Maximize Conversions because the AI won't bid equally for a $30 and $300 conversion — it prefers higher-value ones. Minimum 30 conversions/month with revenue tracking for stable results.

Aliases: tCPA · Target Cost Per Acquisition

Target CPA (tCPA) is a Smart Bidding strategy where you set a target cost per conversion, and Google's algorithm bids to average that target.

tCPA works best for Lead Gen with clear CAC (Customer Acquisition Cost) economics — if you know a conversion is worth $50, you can set tCPA at $20-30. Minimum 15-30 conversions in 30 days for reliable operation. Common mistake: too aggressive target (e.g., $10 when real average is $30) → algorithm stops bidding, impression share drops 80%+. Strategy: start with tCPA = current average CPA, then gradually reduce 10-15% monthly.

Aliases: tROAS · Ciljni ROAS

Target ROAS (tROAS) is a Smart Bidding strategy where you set a target ROAS percentage, and Google bids to ensure the campaign achieves that target.

tROAS requires conversion value tracking (revenue). You set a target value — 400% means $4 revenue for every $1 spent. Google automatically bids higher for clicks likely to produce high conversion value, lower for ones that won't. Used in mature eCommerce accounts (50+ conversions/30 days). For new accounts: start with Maximize Conversion Value → after 2-3 months, move to tROAS with target = then-current average ROAS.

Aliases: AI Bidding · Automated Bidding

Smart Bidding is an umbrella term for all Google Ads Smart Bidding strategies (Max Conv, tCPA, tROAS, Max Conv Value) that use AI for real-time bid adjustments.

Smart Bidding AI uses 70+ billion signals per auction: device, location, time of day, browser, OS, audience match, search query intent, cart content (for eCommerce), weather (for certain industries), and more. A human bidder can't process 70 signals in the millisecond an auction lasts. This is why Smart Bidding outperforms Manual by 20-40% in most accounts with enough conversions (30+/mo).

Aliases: Bid Modifiers · Bid modifikatori

Bid Adjustments are percentages you use to adjust bids up/down by dimension — device, location, time, audience — in Manual or eCPC strategies.

Bid adjustment types: Device (-100% to +900%), Location (±90%), Ad Schedule / Day-parting (±90%), Audience (±900%), Top Content (for Display), RLSA (remarketing for Search). Most common mistake: mobile bid -20% set in 2018 and never updated, while today 60%+ of traffic is mobile. In Smart Bidding, most bid adjustments are IGNORED because the AI self-optimizes across all dimensions.

Aliases: Portfolio Bid Strategy

Portfolio Bidding is a Smart Bidding approach where multiple campaigns share a single bidding target (e.g., tCPA $30) — the AI optimizes the portfolio holistically.

Portfolio strategy is useful when you have multiple campaigns with similar goals (e.g., 5 Search campaigns for different product categories). Instead of separate tCPAs per campaign, the portfolio shares 'budget' across campaigns and optimizes cross-campaign. Advantage: better overall result. Downside: loss of per-campaign control. Recommendation: use portfolio for mature campaigns with stable KPIs, keep Standard bid strategies for new and experimental ones.

Aliases: Seasonality Adjustments · Data Exclusions

Seasonality Adjustment is a Google Ads Smart Bidding tool used to tell the algorithm to expect a temporary spike or drop in conversion rate for a specific date range (sale, holiday, promotion).

Smart Bidding learns from historical data - if you don't flag a sudden spike (e.g. Black Friday, where CR can jump 3-5x), the algorithm reacts slowly and wastes budget in the first days. Set it up in Google Ads → Tools → Bid Strategies → Seasonality adjustments, with a percentage of expected conversion rate change for the selected period (max 7 days recommended). A separate tool, Data Exclusions, does the opposite - it excludes a period with abnormal data (site downtime, technical issue) from the algorithm's training set so it doesn't skew future predictions.

Aliases: Konverzija

A conversion is the desired action a user takes after clicking an ad — purchase, form submit, call, download, signup, or custom event.

You define which actions count as conversions in Google Ads UI: Purchase (ecommerce), Lead form submit, Phone call (>30s), Newsletter signup, Download, Contact button click. Important: not all conversions are equal — for eCommerce use Conversion Value (revenue), for Lead Gen use lead quality (MQL/SQL filter). Count 'One' vs 'Every' setting: 'One' counts max one conversion per click (for forms, leads), 'Every' counts all (for repeat purchases).

Aliases: CVR · CR

Conversion Rate (CR) is the percentage of users who complete a conversion — purchase, form, call — out of the total clicks on an ad.

Typical CR for eCommerce is 1-3% (varies dramatically by industry — luxury items 0.3-0.8%, impulse buys 3-6%). For Lead Gen (forms, calls) 4-12%. High CR = strong landing page Quality Score signal → lower CPC. Improving CR via CRO (landing page optimization) is often cheaper than raising CPC to scale conversions.

Aliases: Vrednost konverzije · Revenue

Conversion Value is the monetary value (revenue) tied to each conversion — required for Maximize Conversion Value and Target ROAS bidding strategies.

Conversion Value is sent to Google Ads via 3 channels: (1) Enhanced Ecommerce in GA4 with a 'purchase' event carrying the 'value' parameter, (2) Direct gtag conversion event with transaction_id and value, (3) Offline Conversion Import (CSV/API) for COD orders that settle later. Advanced: use dynamic value (actual order value) instead of static value ('$50 default') — without this, tROAS can't optimize effectively.

Aliases: Google Tag Manager · Tag Manager

Google Tag Manager (GTM) is Google's central system for managing tags (Google Ads conversion, GA4, Meta Pixel, etc.) without requiring a developer to modify the site code.

GTM uses one 'container' snippet on the site (installed once). Within the GTM UI, you add tags (Google Ads conversion, GA4 event, etc.), triggers (when to fire — on button click, form submit, page view), and variables (what data to send). This means marketers can add new conversions without developers. The biggest benefit: central change history, versioning, debug mode.

Aliases: Google Analytics 4

GA4 is the current version of Google Analytics (since 2023) — an event-based model that tracks web + app actions in a single property and integrates with Google Ads via audience and conversion import.

GA4 replaces the old Universal Analytics (UA) which was deprecated in July 2023. The event-based model means everything (page view, scroll, click, form submit) is an event with parameters, giving more flexibility but requiring more complex setup. Critical for Google Ads: GA4 conversion events are imported as 'Primary' conversions in Google Ads (replacing direct gtag tracking), and GA4 audience segments are used for remarketing and Smart Bidding signals.

Aliases: EC

Enhanced Conversions is Google's privacy-safe conversion tracking system that hashes customer data (email, phone) and matches it against Google accounts for more accurate attribution.

Cookies are slowly disappearing (Chrome will phase them out by end of 2026). Enhanced Conversions solves this by sending SHA-256 hashed customer data (email, phone, name) alongside each conversion. Google then matches that hash against its own sign-in data — if matched, the conversion is attributed accurately without relying on cookies. Mandatory for 2026+ accounts. Setup via GTM or Google Ads UI (select 'User-provided data' in conversion action settings).

Aliases: OCI · Offline Conversions

Offline Conversion Import is the process of sending conversions that happened off-site (phone, physical store, COD order) back to Google Ads for more accurate Smart Bidding optimization.

Critical for Lead Gen (lead → sale happens weeks later) and COD eCommerce in Serbia (order → delivery and payment 3-7 days later). Process: Google Ads click gives a GCLID (Google Click ID), you capture it in CRM, when the lead converts to sale — you upload a CSV (or Google Ads API call) with the GCLID + value. Google matches back to the original click. Without OCI, the algorithm thinks the lead is the conversion and optimizes for quantity instead of quality.

Aliases: Atribucijski model

Attribution Model is a rule for assigning credit for a conversion across multiple touchpoints in the customer journey — First Click, Last Click, Linear, Position-Based, Data-Driven.

The default in Google Ads since 2021 is Data-Driven Attribution (DDA) — an AI model that uses machine learning to assign credit to each touchpoint based on actual impact. Last Click (old default) is deprecated for most accounts. Advanced: Data-Driven often shows that Display/YouTube campaigns 'assist' conversions even though Last Click doesn't count them — which justifies the awareness budget. Tip: check Attribution reports in Google Ads → 'Path Metrics' → see how many touchpoints a typical customer goes through before conversion.

Aliases: Google Consent Mode · CMv2

Consent Mode v2 is Google's system that adjusts how Google tags (Ads, GA4) behave based on a user's cookie consent - mandatory since March 2024 for any advertiser targeting users in the EU/EEA.

It introduces 2 new consent parameters alongside the existing ad_storage and analytics_storage: ad_user_data (whether personal data can be sent to Google for advertising) and ad_personalization (whether data can be used for remarketing and personalized ads). Without CMv2 implemented, Google Ads and GA4 lose the ability to fully measure and remarket EEA traffic - falling back to modeled (estimated) conversions instead of actual ones. Implementation runs through a Cookie Consent Management Platform (CMP) connected to GTM. For the Serbian market it's not formally a legal requirement (Serbia isn't in the EEA), but it's relevant for businesses selling into the EU.

Aliases: 1st-party data · Vlastiti podaci

First-party data is data a business collects directly from its own users - email, phone, purchase history - as opposed to third-party data purchased from external sources.

With the gradual phase-out of third-party cookies and increasingly strict privacy rules, first-party data has become the most valuable asset for targeting and measurement. Practical use in Google Ads: Customer Match (upload email/phone lists to target existing customers or lookalikes), Enhanced Conversions (hashed email/phone for more accurate attribution), and seed audiences for PMax/Demand Gen optimized targeting. Businesses without a CRM or newsletter list lose significant ground to competitors actively building a first-party base.

Aliases: QS · Ocena kvaliteta

Quality Score (QS) is Google's 1-10 rating per keyword that measures ad relevance, expected CTR, and landing page quality. Higher QS = lower CPC.

QS is calculated per keyword, not per campaign or ad. It consists of 3 components: Expected CTR (40%), Ad Relevance (30%), Landing Page Experience (30%). Average QS below 5 is a red flag — you're paying 100-200% more in CPC than competitors with QS 8+. Improving QS is the simplest optimization for quickly reducing CPC.

Aliases: Pozicija oglasa

Ad Rank is Google's formula for ranking ads in the auction — it combines your bid, Quality Score, and expected extension impact to determine position.

Ad Rank is calculated for each auction (not globally). If you have max bid $2 and QS 8, while a competitor has max bid $3 and QS 4, your Ad Rank can be higher — and you actually pay less. This is why Quality Score is so important: it lets you beat richer advertisers. The formula is more complex than just described — it also includes Ad Relevance thresholds and context-specific factors.

Aliases: LP Experience · LPE

Landing Page Experience is the Quality Score component that measures how useful, fast, and relevant your destination (landing page) is for the user who clicks the ad.

Google measures LP through multiple signals: Core Web Vitals (LCP, CLS, INP), mobile-friendliness, page load speed, text relevance (keyword match between ad and LP), presence of a clear value proposition, absence of 'deceptive practices' (bait-and-switch). Rating: Above Average, Average, Below Average. Below Average = QS drops 2-3 points. Most common issue: slow mobile loading (LCP >2.5s).

Aliases: Očekivani CTR

Expected CTR is Google's prediction of how likely your ad is to be clicked — adjusted for position. Component of Quality Score (40% weight).

Expected CTR is always normalized to the top 4 position — so it fairly compares an ad in position 1 to an ad that would be in position 1. Google looks at historical CTR for your keyword + ad combination (historical performance), then compares that to competitors for the same query. Rating: Above Average, Average, Below Average. Below Average = competitive ad copy is mandatory to recover QS.

Aliases: Relevantnost oglasa

Ad Relevance is the Quality Score component that measures how closely your ad matches the query that triggered it — semantic match between keyword and ad copy.

If an ad for 'buy clothes' contains only generic text like 'Online shop. Best prices.' — Ad Relevance is Below Average. If the headline contains 'Buy Clothes Online' — Ad Relevance is Above Average. Tip: use Responsive Search Ads (RSA) with 15 headlines and 4 descriptions, and pin the primary keyword headline to position 1 (so Google can't hide the most relevant copy).

Aliases: Negativne ključne reči

Negative Keywords are words you actively DON'T want your ad to show for — they block budget waste from irrelevant searches (free, used, diy, jobs, etc.).

Negative keywords are the strongest budget protection tool. Typical negative lists for eCommerce: 'free', 'download', 'torrent', 'used', 'jobs', 'careers', 'diy', 'how to make'. Every campaign should have a minimum 50-100 negative keywords. Match types for negatives: Broad (blocks all phrase variations), Phrase (blocks only within phrase), Exact (only exact match). Tip: every month review the 'Search Terms' report and add new negatives.

Aliases: Tipovi poklapanja

Match Types determine when Google shows your ad relative to a user query — Broad Match, Phrase Match, Exact Match. Control precision vs reach.

Broad Match: widest reach, least control — Google may show the ad for synonyms, translations, and semantically 'similar' queries (often too stretched). Phrase Match: ad shows if the phrase appears in the query or in a modified form (order matters). Exact Match: most precise — only for exact match or very close variants. 2026 trend: Google pushes Broad Match with Smart Bidding (claiming the AI 'understands' them), but Phrase Match + negative keywords remains a safer strategy for controlled budget.

Aliases: Širok match · Broad

Broad Match is the widest match type — Google shows the ad for any query it considers 'semantically relevant' to your keyword.

Broad Match is controversial. With Smart Bidding, Google claims the AI can understand 'user intent' and show relevant ads even on loosely related queries. In practice: on new accounts, it often leads to budget waste on totally irrelevant queries. Recommendation: use Broad Match only with (a) active negatives list (50+ words), (b) Smart Bidding strategy (tCPA, Max Conv Value), (c) stable conversion tracking infrastructure. Without all 3, prefer Phrase Match.

Aliases: Tačan match

Exact Match is the most precise match type — ads show only for very precise variants of your keyword (including plurals, typos, close variants).

Exact Match is written in square brackets: [google ads serbia]. Since 2014, it's no longer 'literal' exact — it includes 'close variants': typos (googel ads), plurals (google adses), reordering (serbia google ads). Ideal for branded terms (your business name) and high-intent high-value keywords where you want maximum control. Combining branded Exact + non-branded Phrase is a proven foundational structure for Search campaigns.

Aliases: Fraza match

Phrase Match is the middle match type — ads show if the query contains your phrase in the exact order (with possible additional words before or after).

Phrase Match is written in quotes: 'google ads agency'. The ad shows for queries like 'best google ads agency london' or 'google ads agency for eCommerce', but NOT for 'agency google ads' (reordered). Sweet spot between Broad (too wide) and Exact (too narrow). Recommendation: use Phrase Match as default for 70-80% of keywords in a new campaign.

Aliases: Ad Extensions · Extensions · Sitelinks · Sitelink Extensions

Ad Assets (formerly Ad Extensions) are additional elements attached to a base text ad - sitelinks, phone number, location, price, promotions - that increase ad size and CTR at no extra cost per impression.

Google renamed 'Extensions' to 'Assets' in 2022. Most common types: Sitelink (additional links to specific pages), Callout (short phrases without a link, e.g. 'Free shipping'), Structured Snippet (categorized lists, e.g. 'Services: X, Y, Z'), Call (click-to-call button), Location (address pulled from Google Business Profile), Price (product/service price list), Lead Form (form embedded directly in the ad). Assets feed into the Ad Rank formula - more relevant assets means a higher Ad Rank at the same bid. Recommended minimum: 4+ sitelinks, 4+ callouts per campaign.

Aliases: Branded Search · Non-branded Search

Splitting Search campaigns into Brand (searches containing the business name) and Non-Brand (generic category searches) - a key structural decision for accurately measuring the real impact of advertising.

Brand campaigns (e.g. 'Digital Jelisavac Google Ads') typically have 2-3x higher conversion rates and 30-50% lower CPC because the user already knows the business - it's easy to 'win' your own name in the auction. Non-Brand campaigns (e.g. 'Google Ads agency London') attract colder traffic, cost more, but bring in new customers. Pitfall: merging both types into one campaign masks real efficiency - the average blended CPA looks good thanks to brand while non-brand quietly loses money. Separate budgets and target CPA per type are standard for accurately assessing advertising ROI.

Aliases: Ad Pacing · Delivery Method

Budget Pacing is the rate at which a campaign's daily budget is spent throughout the day - poor pacing means the budget runs out by noon and the campaign disappears from ad space for the rest of the day.

Since 2019, Google Ads uses only Standard delivery for Search/Shopping (spreads spending evenly across the day based on predicted traffic), since the old Accelerated delivery method was removed for those campaign types. Budget can still run out early if the daily cap is low relative to demand - visible through the 'Lost IS (budget)' metric. The fix isn't always a bigger budget - it can also mean narrowing targeting (match types, negative keywords, geo) so the existing budget covers the full day with more relevant traffic.

Aliases: Drafts & Experiments · Split Test · A/B testiranje

Experiment is Google Ads' native A/B testing tool - it splits traffic between the original campaign and a version with one change (bidding, ad copy, landing page) to measure the real effect of that change.

Found under Drafts & Experiments in the Google Ads UI. Process: create a draft change to an existing campaign (e.g. switching bidding from Maximize Conversions to tCPA), launch it as an experiment with a traffic split percentage (usually 50/50), let it run for a minimum of 2-4 weeks (enough for statistical significance), then compare results before applying the change to 100% of budget. Key difference from a 'just try it' approach: the experiment isolates ONE variable and removes seasonality noise because both versions run simultaneously.

Aliases: Auction Insights Report

Auction Insights is a Google Ads report showing how your campaigns and keywords compare to other advertisers competing in the same auctions - competitive analysis straight from the platform.

Available at campaign, ad group, or keyword level. Key metrics: Impression Share (your share of impressions), Overlap Rate (how often you appear alongside a specific competitor), Position Above Rate (how often the competitor outranks you when you both show), Top of Page Rate, and Outranking Share. Useful for spotting new competitors entering the market (a sudden jump in Overlap Rate), and for judging whether a performance drop is your account's fault or increased competition.

Aliases: Return on Ad Spend · Povraćaj na potrošnju

ROAS (Return on Ad Spend) is the ratio of revenue generated from ads to budget spent, expressed as a percentage or multiplier.

ROAS is the fundamental eCommerce metric. ROAS 400% means $4 revenue for every $1 spent. But — ROAS is a vanity metric if it doesn't account for margin. A company with 60% COGS and ROAS 400% actually has a POAS of only 60% (profit after product cost). ROAS is still a useful benchmark, but POAS is a more accurate profitability indicator. The Target ROAS bidding strategy uses this metric directly.

Aliases: Profit on Ad Spend · Profit-Based ROAS · Margin ROAS

POAS (Profit on Ad Spend) is the evolved version of ROAS that accounts for profit (not just revenue) — a realistic indicator of whether a campaign is making or losing money.

POAS subtracts COGS (Cost of Goods Sold) and ad spend from revenue to calculate real profit per dollar spent on ads. Critical for businesses with multi-SKU assortments where different products have different margins. Shopify, Magento, and other eCommerce platforms export COGS data directly to Google Ads via 'custom label' on the feed — enabling Google to optimize for POAS via Maximize Conversion Value bidding. Industry standard in 2026.

Aliases: Average Order Value · Prosečna vrednost narudžbine

AOV (Average Order Value) is the average amount per order — total revenue divided by number of orders.

AOV is a critical eCommerce metric because it directly impacts campaign profitability. If AOV is $50 and target CPA $15, margin is solid. If AOV is $20 and CPA $15, you're barely profitable. Strategies to increase AOV: bundles (buy 2, get 3), free shipping threshold ($50 free shipping → user adds one more item), checkout upsells. Bing/Microsoft Ads users typically have 15-25% higher AOV than Google.

Aliases: Customer Lifetime Value · Životna vrednost kupca

LTV (Customer Lifetime Value) is the total revenue a customer generates over their entire period as an active customer — not just the first order.

LTV is key for eCommerce with repeat purchases (subscription, FMCG, skincare) and SaaS businesses. If LTV is $300 and the first order is $50, you can 'overpay' acquisition (CPA $80) because you know the user will bring in another $250 over a year. Advanced: Dynamic LTV tracking via GA4 + CRM → audience segmentation 'high-LTV customers' → remarketing with more aggressive bidding. Google's 'Value Rules' in Smart Bidding allows 1.5x or 2x bidding for predicted high-LTV customers.

Aliases: Cost of Goods Sold · Trošak prodatih proizvoda

COGS (Cost of Goods Sold) is the direct cost of products you sell — manufacturing, materials, inbound shipping. Necessary for POAS calculation.

COGS is the 'floor' below which you shouldn't go with discounts. Margin = (Revenue - COGS) ÷ Revenue. For eCommerce Shopify/Magento, COGS is typically exported to Google Merchant Center feed as 'custom_label_0' — Google then uses it for POAS-based bidding strategies. Without accurate COGS in the feed, you can't use Value-Based Smart Bidding effectively.

Aliases: Performance Max · PMax kampanja

PMax (Performance Max) is Google's AI-driven campaign that automatically distributes ads across all Google channels — Search, Shopping, Display, YouTube, Gmail, Maps — from a single campaign.

PMax launched in 2021 and became the dominant format in 2026. Instead of separate campaigns for Search and Shopping, PMax combines everything into a single campaign with 'Asset Groups' (images, headlines, video, descriptions) that Google dynamically combines for each channel. Minimum requirements: 50+ conversions/month, conversion value tracking, good feed (for eCommerce variants). Downside: less transparency (Google doesn't show per-channel metrics in detail), less targeting control. Upside: best reach + AI optimization.

Aliases: Responsive Search Ads · RSA oglas

RSA (Responsive Search Ads) is the only type of text ad in Google Search campaigns since 2022 — you provide up to 15 headlines and 4 descriptions, Google AI dynamically combines them.

RSA replaced the old Expanded Text Ads (ETA) format. Google AI dynamically combines 3 headlines and 2 descriptions from your list for every query. Best practice: don't fill all 15 headlines randomly — 7-8 quality angles produce better results than 15 mediocre ones. Pin strategy: pin primary keyword to position 1 (so Google can't hide the most relevant copy). Each RSA gets an 'Ad Strength' rating: Poor, Average, Good, Excellent — tied to headline diversity and keyword inclusion.

Aliases: Retargeting

Remarketing is the strategy of re-targeting users who have already visited your site or interacted with the brand — they convert 2-5x better than cold traffic.

Basic remarketing system: (1) Google tag or GA4 on the site records visitors, (2) Audience lists are created by behavior (all visitors, cart abandoners, product viewers, past purchasers), (3) Remarketing campaign shows Display, Search, YouTube ads to that specific audience. Typical audience lists: Cart Abandoners 7-14 days (warm), Product Viewers 30 days (medium), All Visitors 90 days (cold). Bidding: 2-3x higher CPC than prospecting because LTV is much higher.

Aliases: MSAN · Audience Network

Microsoft Audience Network (MSAN) is Microsoft's equivalent to Google Display Network — serves native and display ads on MSN, Outlook.com, premium partner sites.

MSAN is separate from Bing Search — these are ads that appear in 'feed' context on partner sites. CPCs are typically 30-50% lower than Google Display, and the audience is 'premium' (older, wealthier). It's integrated with LinkedIn targeting (exclusively) — you can target by job title, industry, company size. Ideal for B2B brands.

Aliases: Merchant Center · GMC

Google Merchant Center (GMC) is Google's platform for uploading and managing product feeds — required for Google Shopping campaigns and PMax campaigns with a Shopping segment.

GMC connects your eCommerce site with Google Shopping. The feed contains: title, description, price, availability, image, brand, gtin (barcode), and optional 'custom labels' (use for POAS bidding). Feed must be updated at least daily (ideally real-time via Shopify/Magento API). Site verification (via Google Search Console or Google tag) takes 1-4 weeks. For Serbia — GMC becomes active for Shopping Ads in November 2026.

Aliases: GDN · Display Network · Display kampanja

Google Display Network (GDN) is a network of over 2 million sites, apps, and Google properties (Gmail, YouTube) showing visual banner and native ads - reaching over 90% of internet users.

Unlike Search (high intent, the user is actively searching), Display is mostly an awareness and remarketing channel - the user isn't looking for the product at that moment, the ad 'interrupts' them while reading news or watching a video. Formats: Responsive Display Ads (Google auto-combines image/text for each placement), static banners, native (looks like part of the site's content). CTR on Display is much lower than Search (0.5-1% vs 5-10%), but CPM is also much cheaper. Best results: combined with remarketing lists, not as standalone cold prospecting.

Aliases: Demand Generation · Discovery Ads

Demand Gen is a Google Ads campaign type (since 2023, successor to Discovery Ads) using visually rich, feed-native ads across YouTube Shorts, the Discover feed, Gmail, and Display to generate demand among users not yet actively searching.

Demand Gen targets the upper and mid funnel - users scroll through a feed (Discover, YouTube Shorts) and the ad appears as a natural part of the content rather than an 'interruption'. It requires strong visual creative (images/video, not text) since the format relies on scrolling and visual attention. Used with Maximize Conversions/Conversion Value bidding. Not to be confused with PMax - Demand Gen gives more control over creative and placements (e.g. you can exclude YouTube and keep only Discover), while PMax automates everything across all channels including Search.

Aliases: In-Market Segment · Kupovna namera publika

An In-Market Audience is a ready-made Google segment of users the algorithm judges to be actively researching or planning a purchase in a specific product/service category - based on recent searches and on-site behavior.

Unlike Affinity segments (long-term interests, e.g. 'car enthusiasts'), In-Market measures short-term purchase intent (e.g. 'comparing used cars in the last 30 days'). Used on Display, YouTube, and Demand Gen campaigns as a targeting or observation signal (in PMax it's only a signal, not a strict filter). Practical example for the Serbian market: a furniture retailer can target the 'In-Market: Home & Garden' segment on Display to supplement Search with colder but relevant traffic.

Aliases: Custom Segment · Custom Intent · Custom Affinity · Optimized Targeting

Custom Segments are audiences you define yourself by entering relevant keywords, URLs, or apps - the successor to Custom Intent/Custom Affinity segments, now the standard tool for precise targeting outside Search.

Important accuracy note: Similar Audiences (audiences 'similar' to your existing customers) were fully sunset by Google - announced May 2023, removed from all accounts by August 2023 - due to loss of third-party signal availability. The replacement is two-fold: (1) Custom Segments, where you manually enter keywords/URLs/apps describing your ideal audience, and (2) Optimized Targeting, where AI inside PMax/Display/Demand Gen campaigns automatically expands targeting based on conversion signals, without manually defining a segment. For businesses that previously relied on Similar Audiences, combining Custom Segments (for control) with Optimized Targeting (for AI reach) is the standard replacement today.