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Pay Per Click Search Advertising Definitions and Glossary of terms
Pay-Per-Click Advertising has become an online phenomenon, with marketers only paying for traffic they receive. As Internet marketing has evolved, pay-per-click is seen by many as the middle ground between paying per impression and paying per sale.
The pay-per-click advertisements are usually displayed with the advertisement from the highest paying bid in the top position.
Navigating the complex web of online marketing, publishers and marketers are often confronted with terms that seem foreign. This simple guide will assist marketers in understanding the Pay-Per-Click marketing model.
- Bid - The amount that an advertiser is willing to pay for a click on a specific keyword.
- Budget - The amount of money that an advertiser sets aside for an advertising campaign. Different publishers allow for advertisers to set daily, weekly or monthly budgets.
- Clickthrough Rate (CTR) - The percentage of clicks on a link. This is usually a percentage based on the total number of clicks divided by the number of impressions that an advertisement has received.
- Conversion Rate - The relationship between visitors to a web site and actions considered to be a "conversion", such as a sale or request to receive more information. The percentage of people whose clicks have resulted in a sale or desired action in relation to the total number of clicks on an advertisement.
- Cost Per Click (CPC) - The cost or cost-equivalent paid per click-through to an advertiser's website.
- Cost Per Thousand (CPM) - The amount an advertiser pays for one thousand advertisement impressions, regardless of the consumer's subsequent actions.
- GeoTargetting - An advertisement targeted at a specific geographical region, area or location.
- Impressions - The number of times an advertisement is viewed by web surfers.
- Keywords - Search terms or phrases that are related to an advertisement or ad copy.
- Landing Page - The specific web page that a visitor ultimately reaches after clicking an advertisement. Often, this page is optimized for a specific keyword term or phrase.
- Pay Per Click (PPC) - Advertising model in which advertisers pay for click-throughs to their website. Ads are served based on keywords or themes.
- Return On Investment (ROI) - The percentage of profit that results in a marketing or advertising campaign. Naturally, advertisers want the amount of money made to exceed the money spent.
Understanding the above terminology will help marketers navigate the pay-per-click advertising model, which has emerged as one of the leading advertising models in the online world.
Other Pay Per Click Articles you might find of interest:
+ Is pay per click advertising the right approach for your company?
+ How to detect click fraud within your Pay Per Click Search Campaigns
+ Creating effective landing pages for your pay per click campaigns
+ The main benefits of using Pay Per Click Search Advertising
+ Pay Per Click Search Advertising Definitions and Glossary of terms
+ Microsoft and PPC Advertising - Get Ready for Launch in the New Year
+ Google Adwords Tips and Suggestions from the Front Line
+ Improving your Pay Per Click ROI by optimizing your Landing Pages
+ MSN Adcentre - The new face of Pay Per Click Advertising
+ Writing a good Pay Per Click Ad
+ Broad, Phrase, Exact, Negative - 4 Google AdWords Terms You Must Understand For PPC Advertising Success.
+ 3 Quick Tips To Get The Most From Your Pay Per Click Ads
+ Google Adwords Survival Guide
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