Glossary of Pay Per Click Terms
Today we look at some of the most common terms used in pay per click marketing.
Auto Bidding
This refers to the automatic change in your bid by 1 cent if your nearest competitor changes his bid.
Backlinks
These refer to your website’s links placed on other sites so that when a user clicks on the link he is directed to your site.
Cost Per Click
This is the amount that the advertiser pays for each click that the visitor does.
Conversion Rate
This refers to the number of visitors who actually become actual buyers on your site. Hence it is calculated by dividing the number of click through by the number of actual conversion of buyers. Hence the higher the conversion rate more effective your campaign is.
CPM
This refers to the cost for 1,000 ad views.
Hits
Refers to the number of times visitors click on a particular link in a particular period of time. The number of hits has no relation to whether the user visits the webpage just once or more than once.
Impression
Refers to a process where the visitor views your ad in the browser.
Keyword
Refers to phrases or words that a user is likely to enter in a search engine when he is looking out for a particular product or service. Hence you should use these words in your PPC campaign which can lead the visitor to click on them to lead them to your website.
Keyword Bid
Refers to the maximum amount of money that the advertiser is ready to put in for a particular keyword that the user will click on to visit the advertiser’s website.
Link Building Campaign
Refers to a process where sites exchange links of their webpages with each other to gain popularity amongst the visitors.
Link Farming
Refers to providing a link of a business on a website that is not connected to the business at all. The sole purpose is to increase the popularity of the business. The practice is considered unethical by many.
Minimum Bid
Refers to the minimum amount that has been set up by a search engine for a specific keyword that the advertisers want to sue for their campaign.
Page Rank
The position that your website has achieved on a particular search engine. PR rankings range from 1 to 6 with 1 being the lowest and 6 being the highest.
Page Views
Refers to the number of times that your webpage has been viewed by visitors.
Paid inclusion
Refers to the amount that an advertiser is willing to pay a particular search engine so that the search engine ensures a high ranking for the advertiser. This technique is under review by many search engines as it proves to be unethical from the business point of view.
Reciprocal Linking
Refers to a practice where two advertisers agree to place webpage links of each other on their respective sites to increase the popularity of both the businesses. Normally businesses that are similar in nature resort to reciprocal linking amongst themselves.
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