A lot of small businesses still do not understand the Internet marketing terminology. I talked with 2 Wisconsin small businesses today that had no idea what it all this meant. Below are the definitions I have used in handouts during some of the tradeshow seminars I have done in the past. I hope it some find this useful as a general guide.
Click Through Rate ( CTR )
Click
through rate (CTR) is the number of clicks your sponsored ad receives divided
by the number of times your ad is shown (impressions). CTR = CLICKS / IMPRESSION
Cost-Per-Click ( CPC )
The
cost-per-click (CPC) is the amount you pay each time a person clicks on your
ad.
Cost-Per-Thousand impressions ( CPM )
This stands for cost-per-thousand of impressions. A CPM
pricing model means advertisers pay for each impression of their sponsored ad,
even if it is not clicked on
Conversion
When a user completes an action on your site, such as buying something
or requesting more information
Conversion
Rate ( CR )
The
number of conversions divided by the number of ad clicks.
Destination URL
The
web page address people will be directed too when they click on your
Per-Per-Click sponsored ad. (This is not visible on Google Adwords Ads.)
Display URL
Is
the web pages address the user will see at the bottom of the Pay-Per-Click
sponsored ad.
Geo-Targeting
Advertisers
can select specific geographic areas and languages for their ads to appear. Your
ads will appear only to users who live in the selected geographic areas and match
the selected languages in their preferences.
Landing Page
An
active page on your web site where customers will 'land' after they click on your
sponsored ad. The web address for this page is often called a “destination URL” or “click-through URL”.
Pay-Per-Click ( PPC )
you pay the bid amount only
when someone clicks on your advertisement.
Impressions
The
number of impressions is the number of times an ad is displayed on Google or on
sites or products in the Google Network.
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