Deciphering PPC Terminology – Seven meaningful Terms You Should Know

Deciphering PPC Terminology – Seven meaningful Terms You Should Know




Pay per click (PPC) advertising is filled with acronyms and abbreviations that can confuse anyone unfamiliar with the terminology of this advertising medium. Below are a 10 of the most important terms and phrases you should know:

Click by Rate (CTR): CTR is a ratio that describes the number of people who clicked on an ad versus the number of people who visited the great number page. CTR is usually expressed as a percentage.

Cost per Mille (CPM): CPM is used to express the cost of an advertisement for every thousand impressions on the great number page. Effective Cost per Mille (eCPM) weighs other factors to determine a more accurate cost per thousand.

Cost per Impression (CPI): CPI describes the cost for each individual impression of an ad on the great number page.

Cost per Thousand (CPT): See cost per mille (CPM).

Cost per Action (CPA): The amount it costs to convince a user to complete a desired action. For example, if the desired action were for the visitor to sign up for a newsletter, CPA would mirror the amount the advertiser must use to get one person to subscribe.

Return on Investment (ROI): A ratio used to estimate the value of effectiveness of a marketing or advertising campaign. Describes the amount earned in profit in relation to the amount invested in advertising and promotions.

Search Engine Results Page (SERP): A SERP is the page displayed by Google and other major search engines after a user enters a specific query into the search box.  Search engine optimization (SEO) aims to enhance a website’s rank on the SERP.




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