10 Super Important Pay Per Click Terms

  • CTR: Click Through Rate:
    • it is used to evaluate the quality of the advertisement.
    • It is calculated by dividing the number of clicks by the number of impressions.
    • Gives you an estimate of how many times your advertisement is clicked.
  • CPA:  Cost Per Acquisition:
    • It is used t evaluate the effectiveness of the bidding strategies.
    • It is calculated by dividing the total money spent by the total number of conversions.
    • It gives you the average cost per conversion.
  • CPM: Cost per Thousand:
    • Cost per thousand ad impressions.
  • Click Fraud
    • It is the sending of fraudulent links generated artificially, to a PPC listing
    • The purpose is to raise money for the site that is hosting the ad and even to financially hurt the advertiser.
  • Geo Targeting
    • When specific ads are meant for people only and are not available anywhere else.
  • Impressions
    • The placement of an advertisement on the page.
    • It is a measurement of cost on a per click basis.
  • Max Bid
    • The most that an advertiser is willing to pay for every click.
  • Negative Match
    • A sort of keyword matching where ads are never matched with searches that include the specific negative keyword.
  • ROI: Return on Investment:
    • Your profit from a particular advertising campaign.
    • It is calculated by removing the cost divided by investment from the revenue.
  • Tracking URL
    • A URL that incorporates that keyword search query.
    • It is used to track what keywords and phrases result in traffic.
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