PPC Advertising

Glossary Terms for PPC Advertising

Core Concepts

• PPC (Pay-Per-Click): A digital advertising model where advertisers pay a fee each time their ad is clicked.
• Search Engine Marketing (SEM): A form of online advertising that involves promoting a website through search engines.
• Ad Auctions: The process where advertisers bid on keywords to determine their ad placement.

Campaign Structure

• Ad Groups: Collections of related ads targeting specific keywords.
• Keywords: Words or phrases that trigger the display of ads.
• Ad Copy: The text of an ad that appears in search results.
• Landing Pages: The pages where users land after clicking on an ad.

Bidding Strategies

• Manual Bidding: Setting bids manually for each keyword.
• Automated Bidding: Using algorithms to determine bids.
• Cost Per Click (CPC): The amount paid for each click on an ad.
• Quality Score: A metric that measures the relevance and quality of an ad and its landing page.

Measurement and Analysis

• Click-Through Rate (CTR): The percentage of clicks on an ad compared to impressions.
• Conversion Rate: The percentage of clicks that result in a desired action (e.g., purchase, sign-up).
• Return on Investment (ROI): The profit or loss generated from a PPC campaign.
• A/B Testing: Testing different versions of ads or landing pages to determine the most effective.

Related Terms

• Search Engine Optimization (SEO): Improving a website's visibility in search engine results pages.
• Display Advertising: Advertising that appears on websites in various formats (e.g., banners, images).
• Remarketing: Targeting ads to users who have previously visited a website.