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Getting Started With PPC

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PPC User Guide - Glossary

Bid - The maximum amount you are willing to pay each time your ad is clicked by those browsing the Internet. To use specific keywords for you PPC ad campaign, you must bid on them first.

Click - The action of clicking an online ad or search engine listing and causing it to redirect users to another web page.

Click through rate (CTR) - The number of times an ad is clicked on divided by the number of times your ad is shown.

Conversion - A conversion is when a customer takes the desired action on your website. This could include filling out a form, signing up for a newsletter, calling your business, or making a purchase.

Conversion rate - The number of visitors that converted on your site divided by the number of visitors to your site. This is the rate at which visitors completed the desired goal of your website.

Cost per Conversion - The cost of acquiring a customer calculated by taking the total cost of advertising divided by the number of conversions, which could be a phone call, form submission, e-mail or sale.

High-value page - A web page that has the biggest impact on your site success. You want to draw visitors to this page and use this page to convert visitors to customers.

Keyword - A word or phrase that an Internet user types into a search engine to find relevant websites.

Landing page - A web page where people go once they click on an online ad or search engine listing. Examples of landing pages are product pages with a purchase button, newsletter sign-up forms or download pages for trial software.

Lead - An event triggered by a visitor to your site that usually contains information about a potential customer. For example, a person who clicks on an ad and then completes an inquiry form is considered a lead.

Pay per click (PPC) - A form of online advertising (such as paid search engine listings or banner ads) where you pay only when the visitor clicks on your ad.

Relevancy - The relationship between a keyword and how well it describes the products or services being sold, as well as the relationship between the keyword and the content on the website. Relevancy accurately depicts whether or not a person would utilize a keyword to search for the products and/or services found on the site.

Return on investment (ROI) - The benefit gained in return for the cost of investing in advertising for your website. ROI can be measured by the following calculation: Total Revenue (generated from campaign or project) minus Total Cost.

Search engine - A website that allows Internet users to search numerous web pages. Search engines have "robots" or "spiders" that crawl through the Internet and index web pages. The index is then used for searching. Google®, Yahoo!®, BingTM, and AskTM are examples of search engines.

Search engine marketing (SEM) - Specific plans that outline how Internet marketing should be conducted (PPC, Search Engine Optimization, keyword relevance, link building, etc.).

Search engine optimization (SEO) - Specific plan that utilizes keywords and phrases on a website to attract search engine "robots". The goal of SEO is to increase website rank to attract more visitors.

Tracking - Recording and reporting statistical data on the number of visitors, click-throughs, conversions and other information that help gauge visitor response to your online ads.

Traffic - The number of people who visit your website each day.