PPC 101: Terms to Know

PPC 101: Terms to Know

What is PPC? PPC stands for Pay Per Click, which is an online advertising model where advertisers run ads on platforms like Google, Microsoft, Amazon, Facebook and Yahoo and pay the publisher a fee each time their ad is clicked.

PPC is a great way for advertisers to reach their target audience, grow brand awareness, and increase profits. However, if you like to dip your toes, there are a few key terms you’ll need to know.

tender: The amount of money you are willing to spend for a single click on any given ad.

bounce rate: The percentage of people who enter your site and leave without visiting any other page.

Approximate Match: Ads may appear in searches related to your keyword, even searches that do not contain your keywords. Currently it is the “lightest” of all match types (see Match type).

Broad match modified: They appear with a + sign in front of each or every keyword (example: + shoes + red). The plus sign indicates that the word must be somewhere in the search term. This match type still exists but is being retired by Google and Microsoft; Modified broad match keywords are currently running but cannot be created new.

CTA (induction to buy): The action you want the viewer to take (eg buy now, sign up today, learn more, etc.).

Click: Occurs when a user clicks on one of your ads.

Conversion: It occurs when a website visitor completes a desired goal, such as purchasing your product, booking your service, or filling out a form. Tracking conversions requires some coding settings.

conversion rate: The percentage that shows the rate at which a click converts to a conversion. (Formula: Conversions ÷ Clicks = Conversion Rate)

Cost (also known as outlay): Total spending above. Loosely it’s clicks x CPC, but since CPC is an average, it’s not a completely accurate equation.

CPA (Cost of Procedure, sometimes known as CPA): Cost of a single conversion (Formula: Cost ÷ Conversions = CPA)

CPC (cost per click): It indicates the actual price you pay for each click in your ad campaigns.

CTR (click-through rate): The number of clicks your ad will receive divided by the number of times your ad is shown (formula: clicks ÷ impressions = click-through rate).

ECPC (ECPC): A bid strategy that adjusts CPC to help maximize conversions or conversion value. It adjusts your bid each time your ad is eligible to appear, based on how likely that click is to convert. eCPC is used in both Google Advertising and Microsoft Advertising.

Exact match: in square brackets; Ads may appear in searches that have the same meaning as your keyword (see match type).

impression: It happens when a user sees your ad.

keyword: A word or phrase that users type into a search engine that advertisers target and display their ads for.

KPI (Key Performance Indicator): A measurable measure of performance over time for a specific goal. Learn more about important KPIs.

Match type: It dictates how closely a keyword must match a user’s search query in order for your ads to show. Match types have changed dramatically over the years and no longer work as their names suggest. Existing match types include broad match, phrase match, and exact match.

Negative keyword: A keyword or phrase that advertisers don’t want to target or show their ads for. Learn more about negative keywords.

phrase match: enclosed in quotation marks; Ads may appear in searches that include the meaning of your keyword, whether implied or not (see match type).

Quality Score: A metric used by advertising platforms such as Google and Microsoft that affects Ad Rank and CPC. Factors that affect Quality Score include click-through rate, landing page quality, ad text relevance, keyword relevance, and past account performance. The Quality Score is specified in a range from 1 to 10, with 1 representing the lowest score and 10 representing the highest score.

Remarketing (sometimes known as retargeting): A marketing technique for showing relevant ads to people who have already visited or taken some action on your website.

ROAS (Return on Advertising Spend) (also known as ACC/Cost): The percentage of money gained or lost in paid research relative to the amount of money spent. Or, simply put, for every dollar you spent, how many dollars did you get back? (Formula: Revenue ÷ Cost = ROAS) Learn more about ROAS.

search network: A search related website where your ads and free product listings (eg Google, Microsoft, Yahoo, etc.) can appear.

Search query: A keyword or keyword phrase that users enter into a search engine.

SEM (Search Engine Marketing): The broader marketing name of which PPC is a part. It can also include other forms of paid advertising such as display and video. Basically, it is the name of all the methods of marketing a website on search engines like Google, Microsoft, Yahoo and more, and it is designed to increase the visibility of that website.

SEO (search engine optimization): A set of techniques used to improve the placement of your organic listings based on relevance and how best to appeal to search engine algorithms.

SERP (Search Engine Results Page): The page that the user sees after entering a search query in Google, Microsoft, Yahoo or any other search engine.

With the New Year coming a lot of new opportunities and these terms are a great starting point if you are looking for PPC ads. Knowing these terms will help you navigate the complexities of digital marketing and prepare yourself for success.

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