TRON Media – Pay Per Click (PPC) Jargon Buster

Pay Per Click (PPC) is an advertising technique used on websites, especially search engines. Pay Per Click (PPC) advertisements are usually text ads placed near search results; when a site visitor clicks on the advertisement, the advertiser is charged a small amount.

CPC - Cost Per Click

CPC is the cost of one click on your advert. Advertisers will pay Internet publishers based on the number of clicks a specific advert gets from web users.

Max CPC - Maximum Cost Per Click

Max CPC is the maximum bid amount that you are willing to pay for one click on your advert. The max CPCs helps to determine whether your advert appears above or below other company’s adverts.

CPM - Cost Per Mile

CPM is your cost per thousand impressions and you will be charged an estimate for a thousand advert views.

Impression

An impression is when your Pay Per Click (PPC) advert is displayed when a web user uses a search engine to search for one of your keywords.

Quality Score

Quality score is the basis for measuring the quality of your keywords and determining your minimum bid. The higher your quality score is, the lower your minimum bid and the price you will pay per click.

CTR - Click Through Rate

CTR is total impressions / total clicks. It helps to show you how your ads are performing. The more relevant your adverts are, the more often users will click on them, resulting in a higher CTR.

Bid

This is the amount of money a company investing in Pay Per Click (PPC) advertising is willing to pay for a searcher to click on a specific keyword.

Budget

This is the amount of money a company carrying out Pay Per Click (PPC) advertising sets aside for a specific campaign. Advertisers have the option of setting a daily, weekly or monthly budget depending on the publisher they use.