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PPC Definitions
by S. Housley
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Pay-Per-Click marketing 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. Advertisers only pay when they receive
traffic that may or may not be targeted.
The pay-per-click advertisements are usually displayed with
the advertisement from the highest paying bidder in the top
position.
Navigating the complex web of Internet marketing, publishers
and marketers are often confronted with terms that seem
foreign. This simple guide will assist marketers in
navigating 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.
Delisting - The removal of a listing as a result of
inaction or poor performance.
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.
Linking Text - The text that is contained within a link.
Pay Per Click (PPC) - Advertising model in which
advertisers pay for click-throughs to their website. Ads
are served based on keywords or themes.
Rank - How well a particular web page or web site is listed
in a search engine or advertising results.
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 on the Internet and become one of the leading
advertising models in the online world.
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About the Author
About the Author: Sharon Housley manages marketing for
FeedForAll http://www.feedforall.com software for creating,
editing, publishing RSS feeds and podcasts. In addition
Sharon manages marketing for NotePage
http://www.notepage.net a wireless text messaging software
company.
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