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Pay Per Click Definitions
Pay-Per-Click marketing has become an online phenomenon,
with marketers only paying for traffic they receive.
As Internet marketing 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 may or may not be targeted.
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 marketing, publishers
and marketers are often confronted with terms that seem
foreign. This simple guide will assist marketers in
navigating the Pay-Per-Click marketing model.
Bid - The amount that an advertiser is willing
to pay for a click on a specific keyword.
Budget - The amount of money that an advertiser
sets aside for an advertising campaign. Different publishers
allow for advertisers to set daily, weekly or monthly
budgets.
Clickthrough Rate (CTR) - The percentage of
clicks on a link. 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 advertiser's website.
Cost Per Thousand (CPM) - The amount an advertiser
pays for one thousand advertisement impressions, regardless
of the consumer's subsequent actions.
Delisting - The removal of a listing as a result
of inaction or poor performance.
GeoTargetting - An advertisement targeted at
a specific 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 specific web page that a
visitor ultimately reaches after clicking an advertisement.
Often, this page is optimized for a specific 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
site is listed in a search engine or advertising results.
Return On Investment (ROI) - The percentage
of profit that results in a marketing or advertising
campaign. Naturally, advertisers want the amount of
money made to exceed the money spent.
Understanding the above terminology will help marketers
navigate the pay-per-click advertising model, which
has emerged on the Internet and become one of the leading
advertising models in the online world.
About the Author:
Sharon Housley manages marketing for FeedForAll http://www.feedforall.com
software for creating, editing, publishing RSS feeds
and podcasts. In addition Sharon manages marketing for
NotePage http://www.notepage.net
a wireless text messaging software company.
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