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Pay Per Click (PPC) Advertising Glossary

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Advertisement Click (Ad click) – The number of times an advertisement is clicked by a potential customer.

Ad Impression (Ad view) – The number of times an advertisement is display or viewed by browsers.

Auto bidding – Automatic setting of the maximum bid for the advertiser's keywords. As a result he/she may end up paying less for the click throughs. For example: If an advertiser ‘XYZ', bids $ 0.15 for a keyword and the nearest competitor bids 0.11, then the advertiser XYZ pays only $0.12 for the click throughs. If the competitor raises bid to $ 0.14 then the bid is automatically raised to $0.15.

Conversion Tracking –A conversion occurs when the advertisement clicked on leads directly to a purchase, signup, page view, or lead. The tracking of conversion is done especially to find out the return on investment.

CTR - Click Through Rate, the percentage of clicks a particular advertisement receives.

CPC - Cost Per Click is often interchangeably used for Pay Per Click. It is the amount that an advertiser pays each time the ad is clicked by the potential customer or the browser.

Description – The two lines statement that tries to describe the features of the site or the products/services being offered by the website.

Destination URL - The page that the advertiser wants to associate with a particular ad of the campaign.

Display URL – Your website name that is displayed in the search results of the PPC search engine.

Editorial Review – The advertisement submitted by the advertiser is checked for its relevancy and whether it fulfills the editorial guideline of the PPC advertisement.

Fixed Bidding – Unlike auto-bidding, in fixed bidding there will be no automatic setting of the bid amount. You will pay the amount that you bid on each keyword.

Keyword (search term) – A particular word or a group of words that a potential customer or the browser might type in at the time of looking for a website that offers his/her interest information.

Minimum Bid - It is the lowest amount that search engines allows an advertiser to bid for search terms/keywords.

PPC advertising – Pay Per Click advertising is the form of internet advertising where the advertiser only pays when a potential customer or the browser clicks on the advertisement.

PPC search engine - In PPC search engines, the search results are determined by the bid on keywords by the advertiser.

ROI – The return on investment is the amount that you receive in return to the amount you spend/invest.

Title – Title acts like the headline of the PPC advertisements. It is often a three to five word sentence that calls for attention and persuades a searcher to click on ads.

Tracking code – The code placed on your website to track the conversion and the visitors visiting the website.

 


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