Last two weeks could not able to post any blog entry as was busy in cousin's wedding. It was great, had fun but really tired.
Anyways i m here to define basic SEM/PPC Terms which are very commonly asked in interviews. U must have heard of following terms:-
Impression:- Number of times Ads appear whenever user enters search query related to your Theme either in search network, content network and placements.
Clicks:- Number of times user clicks to Ad Copies showing in search results.
CTR:- Stands for Click Through Rate. CTR is clicks against impression. CTR is a tool to measure the success of an Ad words Advertising Campaign.
CTR can be calculated as : Clicks/Impressions * 100
CPC:- Stands for Cost Per Click. CPC is a cost that we pay to Google for each click.
Max CPC:- Maximum Bid which advertiser ready to pay for one click.
Cost:- Cost of clicks. Total amount that advertiser pay to Google.
Lead:- Lead generates when Ad copy appear in search and clicked by visitor.
ROI:- Stands for Return on Investment. Investment minus Return.
CPL:- Stands for Cost per Lead. Total cost/number of leads.
Example:- Impressions – 1000, click - 20, CTR= click/impression *100 i.e. 2%
CPC – 10, Cost – Click * CPC i.e. 200, Lead - 5
so CPL is cost/leads i.e. 200/5 – 40.
CPM:- Stands for cost per 1000 impressions. For some campaigns you can choose to pay Google as per 1000 impressions for your Ad rather then clicks. Max. CPM is amount you are willing to pay per thousand impressions or Ad views. CPM bid is available only for content network not for Search network and search partner sites.
Quality Score:- Higher the Quality Score of your Ads lower the CPC. Factors effect Quality Score are Keyword Quality, keyword and Ad copy Relation, Landing page, A/c, Campaign, Ad structure and Ad Keywords.
First Page Bid Estimates:- On Google Keyword Analysis Page you can see Bid Estimates. The CPC required for Ad to appear on the first page of Google search results when a search query exactly matches your keyword.
3 comments:
Pay Per Click Advertising is very much like going to an auction. You set an advertising budget for yourself and then you bid against other advertisers for the position you want on search results pages. PPC utilizes many of the same marketing criteria used for SEO when creating ad campaigns. Similar criteria include relevant content and proper keywords.
It is very useful post for the new babies in PPC/SEM.
Is there a way we can bring down the CPC and appear on the 2nd page even the the average CPC is too high from your bid?
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