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PPC: simplified

October 11, 2023|

Learn all about the basics of pay-per-click advertising.

PPC Glossary:

One thing you’ll find in the digital marketing world is the love for acronyms. We’ve put together a list of the terms you’ll come across regularly and what they mean.

  • PPC – Pay Per Click – Refers to paid advertisements that appear at the top of a search results page above the organic search results, and can also appear at the bottom of the page. PPC can also refer to social adverts, however, these can only be placed on social channels.

  • CTR – Click Through Rate – This is a metric used for measuring how successful a campaign has been. It ultimately describes the number of people who have clicked an ad versus how many people see it. To work it out you divide the number of users who clicked on an ad by the number of impressions.
  • CPC – Cost Per Click – The monetary cost for a single click on a paid ad.
  • Max CPC – Refers to the maximum amount you are willing to spend for clicks on a specific keyword, this can be determined by data and implemented at different points.
  • CPA – Cost Per Acquisition – The ultimate cost for a lead that had been generated by a paid ad.
  • IS – Impression Share – The percentage of impressions your ads get versus what they could receive. The possible impressions are based on targeting settings, quality scores, and ad rank.
  • ROI – Return on Investment – The monetary value gained in relation to the money invested into the campaign.
  • ROAS – Return on Ad Spend – A metric that measures revenue from each pound that is spent on paid ads.
  • SEM – Search Engine Marketing – is a form of marketing used to increase search visibility and the achievement of certain business goals through paid advertisement.
  • CTA – Call to Action – a specific action you encourage your users to take e.g phoning, newsletter sign-ups, contact forms completion. With PPC specifically, it usually refers to clicking on an ads link and following through to the landing page via the ad’s assets.

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