To begin, let’s define Pay Per Click (PPC). PPC is best described as the pricing structure used by an online channel to charge advertisers for each user click their advertisement receives. This cost is set by the advertiser and not the social media channel, search engine, or other marketing channels. Another term used to describe this pricing structure is cost-per-click, or CPC. This model of digital marketing offers a way to buy visits to a site as opposed to relying solely on organic visits.
PPC Glossary Terms to Know
While this model sounds rather simple, there are quite a few moving pieces involved in setting up a PPC campaign. To better understand what it takes to run a Pay Per Click campaign, we have compiled the most commonly used PPC terminology. Learning these words will provide you with a deeper understanding of paid media and what tools and techniques are used in the field of Pay Per Click.
- Ad Copy: the headline, text, and URL on display in an online advertisement that is used to attract users to click through to your site.
- Auto Bidding: the process by which your bid is edited by $0.01 in response to your closest competitor bid changes. This increase can go on until a certain amount you specify when setting up the auto bidding and may lower costs.
- Bounce Rate: the percent of individuals who click through to your site and exit without moving to another page.
- Click: this action is registered when someone clicks on your pay-per-click ad takes them to your website.
- Click Through Rate (CTR): a measurement determined by dividing the number of users who clicked on an ad by the number of times the ad was served. This can provide you with a benchmark of which to gauge the success of an online advertising campaign.
- Conversion: an action occurring when a user completes a sale, a form, submits an email, or downloads a document.
- Conversion Rate: the percentage of times the visitors of your site convert to buyers or subscribers.
- Cost-per-Click (CPC): the amount of money an advertiser pays internet publishers for a single click on its advertisement that brings a unique visitor to their site.
- Cost-per-lead (CPL): the amount of money an advertiser pays internet publishers for a conversion generated on their ad.
- Cost per thousand impressions (CPM): the price of 1,000 advertisement impressions on one webpage.
- Geographical Targeting: the display of a PPC ad to only a select group of users determined by a geographical location range.
- Impressions: the number of times your advertisement is served on a search results page.
- Keyword: a word or phrase that a search engine user types into a search engine. You have the power to set your PPC advertisement to appear on particular keywords.
- Landing Page: the webpage that a visitor lands on when clicking your PPC advertisement.
- Lead: an action occurring when a user completes a sale, a form, submits an email, or downloads a document. Also known as a conversion.
- Negative keywords: these keywords can be added to an ad account and allow you to determine which search keywords should not prompt your advertisement. Negative keywords ensure the quality of the click your site receives.
- Pay-Per-Action (PPA): a pricing structure requires advertisers to pay each time a user completes a specified action. Example actions include making a purchase or becoming a subscriber and is often a more costly structure for advertisers.
- Placement Targeting: a targeting method that allows advertisers to choose specific spots in the Google content network. This allows you to be precise with when and where you want your ad served.
- Return on Investment (ROI): ROI refers to the comparison of the profits and costs of your PPC campaign.
- Search Engine Optimization (SEO): a method used to increase organic rankings on various search engines.
Discover the World of Pay Per Click
If you feel like you have a good understanding of the Pay Per Click glossary above, you may have what it takes to work in the field of digital marketing. Pay Per Click strategists work alongside other digital marketings to create impactful campaigns using the above techniques and tools. New Jersey Institute of Technology enlists a team of digital strategists to design the curriculum and teach the lessons in the NJIT Digital Marketing Professional Bootcamp.
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