Online Marketing Top PPC terms
PPC Online Marketing terms
pay. Some people reserve CPC for banners that
charge by the click and PPC for sponsored ads
on search engines.
CPM:Cost per thousand impressions. Allows
you to compare costs from one ad venue, or
type, to another. If an ad costs $500 for 10,000
impressions, your CPM is $500 divided by 10, or
$50. Because most PPC sites also provide the
number of impressions, you can compute CPM
for your PPC campaign.
CTR:Click-through rate. The number of clicks
divided by the number of impressions. Expect
costs for a click-through to be higher than costs
for an impression.
Conversion rate:The number of actions taken
or purchases made divided by the number of
clicks received.
Landing page:The destination page on your site
that viewers see when they click your ad.
Paid inclusion:Payment to be listed in a search
engine or directory, often for faster review or
guaranteed listing. Generally, the search engine
or directory charges a flat annual fee or monthly
charge per URL, although Yahoo! Express uses
a combination of flat fee plus PPC.
PPC:Pay per click payment method.
PPA:Pay per action. Payment is made only
when a prospect takes a prespecified action
(such as makes a phone call, signs up for
newsletter, completes a purchase). Acts almost
like a commission. Expect to pay more per
transaction unit for PPA than for PPC. That’s
reasonable, because your prospect has prequalified
by taking an additional action towardpurchase.
ROI:Return on investment. For PPC, refers to the
profit made divided by the cost of the PPC campaign.
It might be more useful to compute ROI
over a whole program than for an individual
product. Sometimes, you deliberately lose
money or break even on one product called a
loss leader to draw customers into a store, only
to make more on sales