Particularly with someone who is new to the concept, Pay Per Click or PPC, as an internet marketing advertising model can be confusing. Trying to get your head around the way it all works is hard enough without having to keep stopping and finding out what particular words and abbreviations actually mean.
This is why we have put together our PPC Jargon Buster, to provide beginners or even those that just aren’t quite experts yet, with a quick reference guide that will help you to easily get a grasp on some of the fundamental areas of PPC advertising.
So whether you are just starting out running your own PPC advertising campaign or even outsourcing a marketing agency/individual, this guide will explain some of the main points of reference that you will begin to encounter and ensure that the wool isn’t being pulled over your eyes by a slick talking, jargon wielding, PPC cowboy…… (careful, there are a lot of them out there.)
Why not add this page to your favourites so you can quickly refer back to it when you need to?
PPC: Pay Per Click
The Internet marketing model which allows advertisers to show adverts to users of search engines through the use of an auction based bidding system. When a user conducts a search using keywords that an advertiser has bid on, their advert will enter the auction and be shown to the user in the sponsored links section of the search results. The advertiser only pays if their ad is clicked.
SERP: Search Engine Results Page
The page that is shown when you conduct a search on a search engine.
Keywords:
The word or phrase that a user types into the search engine. An advertiser chooses which keywords their potential customers are most likely to search for and place a bid on them for their advert to be shown in that users search results. Keywords in other context can also be referred to as the Search Query.
CPC: Cost Per Click
The amount that an advertiser pays for one click on their advert. An advertiser sets their Maximum CPC for each keyword that they are bidding on, to define the highest amount they would be willing to pay for one click on their advert, when it is triggered by a search for that keyword. The auction based system means that advertisers don’t always have to pay the Max CPC so often the Average CPC is referred to as a way of identifying the average actual cost per click that they have been paying.
Impressions:
An impression means that your advert has been shown as a result of a user searching for a keyword that you are bidding on. Your Ad gets shown 20 times…you’ve had 20 impressions.
Clicks:
If your Ad gets shown in the search results and a user clicks on it, that’s one click. A well written Ad shown for a search on a relevant keyword is more likely to get a click (send a user to your website).
CTR: Click Through Rate
This is the ratio of how many clicks have been received compared to how many times an Ad has been shown, expressed as a percentage. A CTR of 100% means that every time your Ad has been shown, it has been clicked on and is virtually impossible to achieve.
Conversion:
A conversion is when a user completes the ultimate action that you want them to take. If you sell products from your website, a conversion would be when a user is shown your Ad, clicks on it to go through to your site and then completes a transaction to purchase one of your products. In that example 1 conversion equals 1 sale. A conversion could equal 1 sign up to your newsletter, 1 visit to a specified page on your site or whatever you want it to be.
Cost Per Conversion:
Sometimes referred to as CPA (Cost Per Acquisition), this is the average cost that you have had to spend on PPC advertising per each conversion that you have managed to generate.
Quality Score:
Quality Score is a value that Google attributes to every single individual keyword that an advertiser is bidding on and is indicative of how relevant a keyword is to a) the Ad that it is linked to and b) the web page that the Ad is linked to. A score of 1 – 10 can be assigned with 10 being the best. Quality Score can affect your position in the search results and the amount you have to pay. The main metric that affects your quality score for an individual keyword is its CTR. The higher the CTR, the higher the quality score (generally speaking).
Ad Rank:
The metric that Google uses to determine each advertisers position in the search results, the advertiser with the highest Ad Rank, appears in the highest position in the search results. Calculated by Quality Score x Max CPC, ultimately means that the higher your quality score, the less your Max CPC would have to be to appear in the same position as you would with a lower Quality Score.
For more assistance with PPC visit the 11 out of 10 PPC Management Page.