Pay Per Click Glossary from Outsource2india

Pay Per Click (PPC)

A method of advertising where your ads are placed on PPC engines and you pay the PPC engines based on the number of clicks to the website.

PPC Search Engine

These are search engines where the ad copies are submitted and in return, we pay them for the clicks received. Eg: Google, Miva, Goclick, etc.

PPC Ad listing

For a PPC ad to be listed, it should consist of a title (brief heading of the product to be sold), a description (summary of the product and the offer) and the URL (the link to your website).

Keyword

A word or phrase used by visitors on search engines to search for products or services.

Bid

The amount allocated to a keyword in the PPC engine. This decides the position of your ad and how much you pay for each click.

Ranking

The position at which your ad will appear. The position of an ad depends on your CPC/bids and on your competitors’ CPC/bids. The higher the bid, the higher the position and the better the ranking.

Keyword Matching

This provides different options for presenting your keywords in PPC search engines, like phrase matching, broad matching, exact matching etc. Your ad would be displayed for specific keywords based on the keyword matching option you choose.

Broad Matching

Here, the keywords or phrases are used in such a way that your ad would be shown for any query string containing the keywords or phrases in any order. Eg: If your keyword is Chinese Food, then your ad would be shown any time the keyword is entered irrespective of the order, like hot Chinese food, Chinese food restaurant, Chinese food ingredients etc.

Phrase Matching

In Phrase matching, the keyword will be matched with only those query strings that contain the keyword phrase in exactly the same order. Eg: If your keyword is Leather bags then your ad will show up only if the search phrase is “Black leather bags”, but your ad will not show up for “travel bags leather resin”.

Negative Matching

In negative matching, you can choose the words for which you do not want your ad to be displayed. Ex: If the keyword is Chinese Food and not any food, then choose Food as the negative matching keyword. If the keyword Food is researched then your ad won’t show up.

Impressions

The number of times your ad was displayed for a particular keyword.

Clicks

The number of times the ad was clicked upon.

Click Through Rate (CTR)

The percentage of impressions converted into a click.

CTR = Clicks/Impression * 100

Daily Budget

The amount to be spent on a daily basis on a PPC engine. Most PPC engines have the option of a daily budget so that you don’t spent too much. This can also prevent click fraud.

Max CPC/Max Bid

The amount you quote or are ready to pay for every click you get.

Avg. CPC

The average amount you will actually pay for the click you get.

Avg CPC = Cost/Clicks

Cost per Order

This is obtained by

Cost per Order = Total spending/Number of orders

Click Fraud

When a person or a computer program imitates a user of a web browser by clicking on an ad, for generating an improper charge per click, it is referred to as click fraud. This can be done by your competitors who want you to lose money, or even PPC engines that want to get extra money. There are many softwares to find and prevent click fraud.

Geographical Targeting

This involves limiting your advertisements to specific geographical areas i.e. Advertising, limited to target a particular audience based on dimensions like country, state, city, metropolitan code, area code, and connection speed.

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