Pay Per Click (PPC)

The Language Of Pay Per Click Marketing Clarified

Posted in Pay Per Click (PPC) by wp on 17th of December, 2008

The click to pay marketing is an industry full of jargon and buzzwords. These can be totally confusing to a prospective client and if you do not understand the major short forms used, you will be unable to gauge how effective your campaigns and if you are making any profit at all.

There are a huge number of these market related words, so let us look at a few of the most important ones.

Clarity

PPC stands for Pay Per Click. This is the amount you as the advertiser pays for every time someone clicks on your advertisement and remember there are different rates you can be charged. Return on Investment [ROI] is the formula used to work out profit between income from sales and the amount you initially invested in your campaign.

CPA means the cost connected to bring in each acquisition and Conversion means a visitor that turns into a sale. CPC is the cost that you as the advertiser will be charged every time a visitor clicks on your advertisement on the PCP platform.

Your CTR [click through rate] is the number of visitors who click on your ad and goes through to view your website. As a formula, it is clicks divided by impressions.

Your Landing Page is that critical page to which traffic goes [lands on] after clicking on your advert and Location Target is where you set geographical parameters for the search engine as to where exactly your ads must be shown.

Maximum CPC is the maximum amount that you as the advertiser is prepared to pay for every click on your advertisement and the minimum bid is the lowers amount you can pay per click for your advertisement to be placed.