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Pay-per-click is a new concept emerged in internet marketing where marketers are paying for traffic they receive.Pay-per-click is interpreted by many as a inbetween situation of paying per impression and paying per sale.Advertiser will pay for receiving traffic that may or may not be converted into sales.
The simple explanation of terms relates to pay-per-click model will helpful for internet marketers navigating the new popular concept.
A.Bid:- The amount that advertiser agrees to pay for a click on a particular keyword.
B.Budget:-The amount of fund earmarked by advertiser for the campaign.It may be daily,weekly or monthly basis.
C.Click Through Rate (CTR):- It is the percentage of click on a link and is measured total no of clicks to total no of impression.
D.Conversion Rate:- It exhibits the relation between no.of visitors to a website and conversion into sales or eager to get more information.It is the computation of percentage of total no.of clicks to no.of sales or require more information by the visitors.
E.Cost Per Click(CPC):- The cost or cost-equivalent paid per click through to an advertiser website.
F.Cost Per Thousand(CPM):-The amount that advertiser pays for one thousand impression without considering subsequent action of the websurfer
G.Delisting:- The removal of listing for no action or poor results.
H.Geo Targetting:- An Advertisement assigned by advertiser for special geographical location.
I.Impression:-The no.of times advt.are viewed by websurfers.
J.Keywords:- The terms and phrases include in the advt.and that particular terms and phrases are used by websurfers in search queries.
K.Landing Page:- The page which websurfers reach after clicking the advt.Generally,that page is optimised by that keyword or phrases.
L.Linking Text:- The text that is available within a link.
M.Pay Per click:-The amount paid by advertiser for click through to their website.Ads are valued based on keywords or themes.
N.Rank:- the position of a website or a webpage listed by Search Engine.
O.Return On Investment(ROI):- The percentage of profits that yields from advertisement.Naturally,Advertiser will eager to get more income compared to expenses.
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with best regards
Michel Newman
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