Understanding PPC Acronyms

Simple definitions for paid search acronyms

WHAT DOES PPC MEAN? 2

PPC: Pay-per-Click

Pay-per-Click is a form of online advertising that focuses on driving traffic to a website that advertisers pay for on a per click basis.

WHAT IS SEM? 3

SEM: Search Engine Marketing

SEM is simply another name for pay-per-click marketing. It consists of purchasing traffic to a website. SEM is sometimes used as an umbrella term to refer to PPC and SEO but in most cases is used to solely describe PPC.

WHAT DOES CPC STAND FOR? 4

CPC: Cost-per-Click

Cost-per-Click is a mathematical calculation used to represent the average cost an advertiser pays per click on their advertisement. It is easily calculated by dividing the total cost by the total number of clicks received.

CPC = Total Cost/Total Clicks

MAX CPC VS ACTUAL CPC? 5

Max CPC is the bid set as the maximum you are willing to pay for one click on your ad.

Actual CPC is an average of what you are actually paying for one click on your ad. Actual CPC is often less than your max CPC bid.

WHAT IS CTR? 6

CTR: Click-Through-Rate

CTR represents the frequency in which an ad is clicked on after it receives an impression. To calculate CTR, divide the total number of clicks by the total number of impressions.

CTR = Total Clicks/Total Impressions

WHAT DOES CPA MEAN? 7

CPA: Cost-per-Action

CPA is a representation of how much an advertiser pays per desired action on site (i.e. a sale or submission). CPA is calculated by dividing the total ad cost by the total number of actions completed by those ads.

CPA = Total Cost/Total Actions

WHAT DOES ROAS MEAN? 8

ROAS: Return on Advertising Spend

ROAS represents the total amount of ad revenue generated compared to the total ad spend. This is similar to ROI (return on investment) but focuses solely on ad spend as opposed to the entire investment made into advertising.

ROAS = (Total Ad Revenue - Total Ad Cost) / Total Ad Cost

WHAT DOES CRO MEAN? 9

CRO: Conversion rate optimization

CRO is the practice of optimizing a website's design and user experience in combination with your search marketing ads in an effort to improve conversion rate.

WHAT DOES AOV STAND FOR? 10

AOV: Average Order Value

AOV represents the average amount of revenue generated by an online sales or transactions. AOV is calculated by dividing the total revenue generated by the total number of sales.

AOV = Transactions / Revenue

STILL CONFUSED? 11

Contact Us to learn more!

Further your PPC learning and get more great information while learning about our monthly PPC management services.

http://www.ppc-essentials.com

ppc-essentials@portent.com