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.