Pay-Per-Click selling
has become an online phenomenon, with marketers only paying for visitors
they receive. As Internet advertising has evolved, pay-per-click is seen by many as the middle ground between paying per impression and paying per sale. Advertisers only pay when they receive traffic that might
or might
not be specific.
The pay-per-click advertisements are usually displayed with the advertisement from the highest paying bidder in the top position.
Navigating the complex web of Internet selling
, publishers and marketers are generally confronted with terms that seem foreign. This simple guide will assist marketers in navigating the Pay-Per-Click branding model.
Bid - The amount that an advertiser is willing to pay for a click on a distinct keyword.
Budget - The amount of funds
that an advertiser sets aside for an selling
campaign. Different publishers allow for advertisers to set daily, weekly or monthly budgets.
Clickthrough Rate (CTR) - The percentage of clicks on a backlink
. This is usually a percentage based on the total number of clicks divided by the number of impressions that an advertisement has received.
Conversion Rate - The relationship between visitors to a web site and actions considered to be a "conversion", such as a sale or request to receive more information: the percentage of people whose clicks have resulted in a sale or desired action in relation to the total number of clicks on an advertisement.
Cost Per Click (CPC) - The cost or cost-equivalent paid per click-through to an advertisers website.
Cost Per Thousand (CPM) - The amount an advertiser pays for one thousand advertisement impressions, regardless of the consumers subsequent actions.
Delisting - The removal of a listing as a result of inaction or poor performance.
GeoTargetting - An advertisement specific at a distingguished geographical region, area or location.
Impressions - The number of times an advertisement is viewed by web surfers.
Keywords - Search terms or phrases that are related to an advertisement or ad copy.
Landing Page - The clear-cut web page that a visitor ultimately reaches after clicking an advertisement. Often, this page is optimized for a explicit
keyword term or phrase.
Linking Text - The text that is contained within a link.
Pay Per Click (PPC) - Advertising model in which advertisers pay for click-throughs to their website. Ads are served based on keywords or themes.
Rank - How well a particular web page or web page
is listed in a search engine or advertising results.
Return On Investment (ROI) - The percentage of profit that results in a promoting or advertising campaign. Naturally, advertisers want the amount of funds
made to exceed the money spent.
Understanding the above terminology will help marketers navigate the pay-per-click selling
model, which has emerged on the Internet and become one of the leading advertising models in the online world.