You need to learn 4 things to start with:

  • Keywords
  • Ad Rank
  • Bids
  • Quality Score


Keywords:
        5 types of Keywords
  1. Broad
  2. Phrase
  3. Exact
  4. Negative
  5. Broad Modified

  • keywords and phrase describing your products and service.
  • Always select high quality and relevant keywords for your ads
  • Poor keywords will in higher Cost-Per-Click & lower ad position.
  • Always choose 2-3 word phrase not singular ones.

Types of  Keywords: Broad Match 
  • This is google's default keyword match setting.
  • I would recommended not to use this match as it is not targeted.
  • You will get more impression for your ads, but your quality score may be lower due to lower CTR(click through rate).
  • You may get untargeted visitors due to the broad nature of keyword matching.

Types of Keywords: Phrase Match
  • More Targeted than Broad Keyword.
  • Show ad on close variants of your keywords with additional words before or after your keywords.
  • Increase Your CTR.
  • The higher the CTR >> the better the Quality Score.


Ad Rank:
  • A value that's used to determine your ad position.
  • Ad Rank depends on :
                    Your Bid + Quality Score + Ad Relevance + Landing Page Experience

Quality Score
  • Is an estimate of the quality your keywords, ads and landing page.
  • Is marked out of 10.  1 being worst - 10 being best.
  • The higher Quality Score - the lower the cost.