Glossary: Pay-Per-Click Terminology

Ad - The text advert displayed by the search engine in response to a search query.

Ave CPC – The average amount you have paid per click over a defined period of time.

Bid - See Keyword Bid.

CTR (Click Through Rate) - The percentage of users who click on your text ad divided by the number of impressions. If an ad has been displayed 100 times generates 10 clicks, the resulting CTR would be 10%.

CPC (Cost Per Click) - The amount you pay for each click on your ad.

CPA (Cost Per Acquisition) – This is an alternative to CPC bidding whereby you bid on the cost per acquisition instead. This should not be confused with the cost per conversion.

Conversion Rate - The percentage of visitors who are converted into purchasers of your product or service. It is calculated as the number of clicks divided by the number of actual conversions. The higher the conversion rate, the more effective your campaign has been.

CPM - The cost for 1,000 impressions.

Hits - The number of times a particular web page is viewed. The number of hits is independent of whether or not it is the same user visiting the same page more than once. Sometimes referred to as Visits.
Impressions - Also known as ad views. "Impressions" is the term used to describe the displaying of a text ad by the users browser.

Keyword – Is the text that users enter into the search box of a search engine. They can be a single word or phase. Depending upon the size of the campaign, the number of keywords used can range from a only a few to many tens of thousands.

Landing Page - The destination page that viewers see when they click an ad.

Max CPC (Maximum Bid) - The maximum amount of money you are prepared to pay every time a user clicks on your pay-per-click ad on a search engine and thus visits your website.

Min CPC (Minimum Bid) - The minimum amount set by the pay-per-click search engine for a specific keyword.

Negative Keywords – Adding a negative keyword to your ad group or campaign will prevent your ads being displayed for search queries containing that keyword.

Page Views - The number of times a web page is viewed.

Quality Score – A measure of relevance determined by the search engines taking into account your keywords, text ad’s, landing pages, etc.

ROI (Return On Investment) - The amount of money made as compared to the amount of money you have spent.

Search Query - See Keyword.

SEO (Search Engine Optimisation) - A variety of techniques used to optimise your website and thereby improve its natural search engine ranking.

SERP - An abbreviation of Search Engine Results Page.

Text Ad – see Ad above.

Unique Visitors - The number of people who visit a web page. If one person visits the same web page 3 or 4 times, the statistics will show that as 1 unique visitor only. See also Hits.

URL - URL stands for Uniform Resource Locator, more commonly referred to as the website address ie http://www.google.com.

Visits - See Hits.