PPC terms explained: SpiderGroup's glossary


By Hannah Wakeman

Digital
4 October 2016

modern-analyst-1317115_1920Pay per click advertising is a really valuable way of increasing your online presence and generating leads for your business. With online adverts, you can get your company out there instantly and only pay when someone clicks and lands on your website. But with so many PPC related terms floating about, it can be difficult to know what everything means and what to do with it. Here, we define some of the commonly used PPC terms so you can make informed decisions about your marketing!

PPC (Pay-per-click)

This is a general term for all online advertising where you only pay when someone clicks the ad. This includes Google AdWords, Bing, Facebook, LinkedIn and Twitter. More commonly, people are referring to Google AdWords when saying PPC, as it is the biggest online advertiser.

 Search terms

Search engine PPC relies on people searching on the internet for your advert to show up. This means that you need to look at people’s search terms to work out what your advert needs to show for, and what it shouldn’t be showing for.

captureKeywords

Once you’ve established the search terms that relate to your business and services, you can add them as keywords for your advert to show up for. Relevant keywords that match your business are the basis of a good AdWords campaign. It’s really important to thoroughly research your keywords.

Impressions

People clicking on your adverts is one of the most important metrics to measure in terms of your PPC account. With this, comes the impressions. This is the number of times your advert showed to a person.

Click through rate (CTR)

Once you can see the number of clicks and impressions, you can work out your click through rate. This is the clicks divided by the impressions. The higher the click through rate, the more relevant your ad to people’s search terms.

Quality score

Your quality score is made up of a number of factors and is scored out of 10, with 10 being the highest quality it can be. This takes into consideration the matching of your keyword, ad text and landing page, as well as the expected click through rate of your advert. It should be your general aim to get a 10 out of 10 quality score, as higher quality score means cheaper clicks!

CPC (cost per click)

So how is the cost per click worked out for the bid auction? You set your bid in the interface, and it’ll normally tell you a suggested bid looking at competitors and the general market and industry. Once you’ve established how much you’re paying for each click, you can try and bring them down or raise them to fit in with the position you’d like to show in. It’s worth remembering that if you’re limited by your budget, then bringing down the CPC will mean you can fit more clicks within your budget.

whiteboard-graphConversions

A conversion could be anything from a sale to a phone call. You’ll set your conversion using specialist conversion tracking through the website. The ultimate aim of any PPC campaign is to increase conversions for your business and generate more leads and sales to improve your return on investment.

PPC can be complicated and requires a good understanding of the bid auction concepts to get it right! If you’d like a hand, get in touch with our PPC management team in Bristol by calling us on 0117 933 0570 or you can fill in our contact form and we will get back to you.

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