Wednesday, August 22, 2012

Basic Terms used in PPC

Click:-

A click is when a user interacts with your ad by clicking on it, typically showing an intention to learn more about what you offer.

Why it matters: Clicks can help you understand how well your ad appeals to people who see it.  If you know how many people are clicking your ads relative to how many people are seeing them (impressions), you can gauge the success of your ads.


Impression:-

How often your ad is shown. An impression is counted each time your ad is shown on a search results page or other site on the Google Network.

(CTR) :-

Clickthrough rate (CTR) is the number of clicks your ad receives divided by the number of times your ad is shown.

What it is: CTR represents how often people click your ad after it's shown to them:

CTR =     Clicks on your ads
Impressions (ad views)

Example: If you have five clicks and 1000 impressions, then your CTR is 0.5%.

CPC:-

Average cost-per-click (CPC) is the average amount that you've been charged for a click on your ad.

What it is: This amount is the total cost of all clicks divided by the total number of clicks received.

What it isn't: Average CPC isn't the same thing as maximum CPC -- that's the most you're willing to pay for a click on your ad. You won't be charged more for a single click than the maximum CPC that you set.

Example: If your ad receives two clicks, one costing $0.20 and one costing $0.40, your average CPC for those clicks is $0.30.

Conversions:-

 Conversions(1-per-click) divided by total clicks.

Conversions (1-per-click):-

Conversions (1-per-click) count a conversion for every AdWords ad click resulting in a conversion within 30 days. This means if more than one conversion happens following a single ad click, conversions after the first will not count.

Another way to say this is that conversions (1-per-click) will count at most one conversion per click. These metrics are useful for measuring conversions approximating unique customer acquisitions (e.g. leads).

Cost / Conversion (1-per-click):-

Total cost divided by conversions (1-per-click).

Conversions (1-per-click) count a conversion for every AdWords ad click resulting in a conversion within 30 days. This means if more than one conversion happens following a single ad click, conversions after the first will not count.

Another way to say this is that conversions (1-per-click) will count at most one conversion per click. These metrics are useful for measuring conversions approximating unique customer acquisitions (e.g. leads). 

Conversions (many-per-click):-

Conversions (many-per-click) count a conversion every time a conversion is made within 30 days following an AdWords ad click. Conversions (many-per-click) will count multiple conversions per click. These metrics are useful for measuring conversions that are valuable every time they happen (e.g. ecommerce transactions).


Cost:-

The sum of your cost-per-click (CPC) and cost-per-thousand impressions (CPM) costs. This column does not include other costs such as cost-per-call. For a sum of all costs, use the Total Cost column.

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