Online advertising terms

November 23rd, 2005 at 9:49 am

Pay-Per-Click basic terms explained:

Bid
The amount that advertisers are willing to pay for a click.

Budget
The amount of money that an advertiser sets for a campaign. Publishers allow for advertisers to set daily, weekly or monthly budgets.

Clickthrough Rate (CTR)
Percentage based on the total number of clicks divided by the number of impressions.

Conversion Rate
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 advertiser’s website.

Cost Per Thousand (CPM)
The amount an advertiser pays for one thousand advertisement impressions.

Geo Targetting
An advertisement targeted at a specific geographical region, area or location.

Impressions
How many times an advertisement was shown to visitors.

Keywords
Search terms or phrases that are related to an advertisement.

Landing Page
The specific web page, optimized for a specific keyword, that a visitor reaches after clicking an advertisement.

Pay Per Click (PPC)
Advertising model in which advertisers pay for click-throughs to their website. Ads are served based on specific keywords.

Page Rank
How well a particular web page or web site is listed in a search engine.

Return On Investment (ROI)
The percentage of profit that results in a marketing or advertising campaign.

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