Terminology

PPC TERMINOLOGY

DEFINITIONS

•CPC: Cost Per Click. The amount of money you're charged per click.

•Impression: An impression is generated every time someone searches for a keyword you've targeted, regardless if they click on your ad or not. As long as your ad was shown, it counts as an impression. It's average to have 99 - 100% more impressions than actual clicks.

•CTR: Click-Thru Ratio. CTR is a percentage that compares the number of impressions a keyword/adgroup/campaign has generated, vs. how many clicks were generated. A 0.50% - 1% CTR is usually average. The higher the CTR of a particular keyword/adgroup is, the better. You obviously want more clicks.

•ROI: Return on Investment. ROI isn't a PPC-specific term, but it's used a lot with PPC since you're paying for each visitor in hopes of profiting. Your end results will depend on your staff that responds to your conversions. With the recent Google addition of Google Instant & Google Boost, you NEED Adwords in to compete in today's constantly changing landscape.

•Conversion Rate: Your conversion rate is how many visitors purchase or perform a desired action on your site, vs. how many total visitors were generated.

•Landing Page: The page in which visitors who click your ad are directed to is considered your landing page. It should be a page set up specifically for your PPC campaign.

•Quality Score: Each keyword is given a quality score (by Google / Yahoo) and it's based on several factors including CTR, ad copy relevancy, landing page relevancy, landing page load time, etc..Too many images or large flash useage on your landing pages could cause your landing page to produce a low volume of applications, purchases or contacts.

•Geographical Targeting: This allows you to specify different cities & countries that you want your ad to show for.

•Daily Budget Limit: This lets you specify a daily spending limit for an entire campaign. So if you specify $450.00, your ad will automatically pause itself once that amount of money has been reached. It's important that your PPC manager monitors closely as to when your ads stop showing. Not to do so could will result in your ads not showing during prime time search traffic.