 Pay Per Click DefinitionsPublished Date: 2005-07-06 14:57:30 WorkOnInternet.com
Navigating the complex web of Internet marketing, publishers and marketers are often confronted with terms that seem foreign. This simple guide will assist marketers in navigating the Pay-Per-Click marketing model. Bid - The amount that an advertiser is willing to pay for a click on a specific keyword. Budget - The amount of money that an advertiser sets aside for an advertising campaign. Different publishers allow for advertisers to set daily, weekly or monthly budgets. Clickthrough Rate (CTR) - The percentage of clicks on a link. This is usually a percentage based on the total number of clicks divided by the number of impressions that an advertisement has received. Conversion Rate - The relationship between visitors to a web site and actions considered to be a "conversion", such as a sale or request to receive more information: the percentage of people whose clicks have resulted in a sale or desired action in relation to the total number of clicks on an advertisement. Cost Per Click (CPC) - The cost or cost-equivalent paid per click-through to an advertiser's website. Cost Per Thousand (CPM) - The amount an advertiser pays for one thousand advertisement impressions, regardless of the consumer's subsequent actions. Delisting - The removal of a listing as a result of inaction or poor performance. GeoTargetting - An advertisement targeted at a specific geographical region, area or location. Impressions - The number of times an advertisement is viewed by web surfers. Keywords - Search terms or phrases that are related to an advertisement or ad copy. Landing Page - The specific web page that a visitor ultimately reaches after clicking an advertisement. Often, this page is optimized for a specific keyword term or phrase. Linking Text - The text that is contained within a link. Pay Per Click (PPC) - Advertising model in which advertisers pay for click-throughs to their website. Ads are served based on keywords or themes. Rank - How well a particular web page or web site is listed in a search engine or advertising results. Return On Investment (ROI) - The percentage of profit that results in a marketing or advertising campaign. Naturally, advertisers want the amount of money made to exceed the money spent. Understanding the above terminology will help marketers navigate the pay-per-click advertising model, which has emerged on the Internet and become one of the leading advertising models in the online world. About the Author: Sharon Housley manages marketing for FeedForAll http://www.feedforall.com software for creating, editing, publishing RSS feeds and podcasts. In addition Sharon manages marketing for NotePage http://www.notepage.net a wireless text messaging software company. Permissions: Permissions and notification of use not required.
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