The Terminology of Google PPC
Google search marketing uses precise terminology
There are only a handful of terms that make up the pay per click “lingo”, but they are important terms with very precise meanings. It is quite important that you understand these.
- Search Terms
If your potential customer is searching on Google, the words they type in are called: search terms.
If you want your ad to show for those search terms, you need to match them with one of your keywords.
- Search Engine Results Page
The page that Google returns for a search is called a search engine results page or SERP, where Google decides which ads to show and in which order.
When the match is close enough and your bid is high enough, Google decides to show the searcher your ad. This is called an impression.
If they click on the ad, it’s called a click and they are taken to your site’s landing page (which is just your main website or a page that has been customized).
- MaxCPC Bid
You can set the maximum amount you would pay for a click – your maximum cost per click bid (maxCPC bid) for your keywords.
- Cost per click
The actual amount your are charged for a group of clicks divided by the number of clicks is called your cost per click, or CPC.
- Click thru rate
The ratio of clicks to impressions is called: click thru rate or CTR.
If they buy from you (or do the action you were hoping for), it’s called a conversion.
- Conversion rate
The ratio of conversions to clicks is called: conversion rate.
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