PPC & Search Engine Marketing Glossary
- Ad Copy
- The text of a PPC advertisement, including the headline, description, and display URL. Effective ad copy is concise, relevant to the keyword, and includes a clear call to action.
- Ad Group
- A set of related keywords and ads within a PPC campaign. Organizing keywords into tightly themed ad groups improves relevance and quality scores.
- Bid
- The maximum amount an advertiser is willing to pay for a single click on their ad. The actual cost per click may be lower depending on competition and quality score.
- Click Fraud
- Invalid or malicious clicks on PPC ads, often generated by competitors or automated scripts to deplete an advertiser's budget. Reputable PPC engines employ detection systems to filter fraudulent clicks.
- Click-Through Rate (CTR)
- The percentage of people who click on an ad after seeing it. Calculated as clicks divided by impressions, multiplied by 100. A higher CTR generally indicates more relevant ad copy.
- Conversion
- A desired action completed by a visitor after clicking an ad, such as making a purchase, filling out a form, or signing up for a newsletter.
- Conversion Rate
- The percentage of ad clicks that result in a conversion. Calculated as conversions divided by clicks, multiplied by 100.
- Cost Per Acquisition (CPA)
- The average cost of acquiring one conversion. Calculated as total ad spend divided by the number of conversions. Also called cost per action.
- Cost Per Click (CPC)
- The actual amount an advertiser pays each time a user clicks on their ad. This may be less than the maximum bid depending on the auction mechanism used by the PPC engine.
- Cost Per Mille (CPM)
- The cost per one thousand impressions. Used primarily in display advertising rather than search-based PPC.
- Daily Budget
- The maximum amount an advertiser is willing to spend on a PPC campaign in a single day. Once the budget is reached, ads stop showing until the next day.
- Deposit
- The initial payment required by a PPC engine to fund an advertiser's account. Minimum deposits range from $5 to $100+ depending on the platform.
- Display URL
- The URL shown in a PPC ad. It may differ from the actual destination URL but should reflect the domain the user will land on.
- E-Gold
- A digital gold currency payment system accepted by some PPC engines as an alternative to credit cards or PayPal.
- Impression
- A single instance of an ad being displayed to a user in search results. An ad that appears 1,000 times has received 1,000 impressions.
- Keyword
- A word or phrase that an advertiser bids on in a PPC campaign. When a user searches for that term, the advertiser's ad may appear in the results.
- Landing Page
- The web page a visitor arrives at after clicking a PPC ad. Optimized landing pages match the ad's promise and focus on driving conversions.
- Long-Tail Keyword
- A longer, more specific keyword phrase (e.g., "red leather women's wallet" vs. "wallet"). Long-tail keywords have lower search volume but higher conversion rates and lower bids.
- Minimum Bid
- The lowest amount a PPC engine allows an advertiser to bid on a keyword. Varies by platform, from $0.001 to $0.10.
- Negative Keyword
- A keyword that prevents an ad from showing when included in a search query. Used to filter out irrelevant traffic and reduce wasted spend.
- Organic Results
- Search engine results that appear based on relevance and SEO rather than paid advertising. PPC ads typically appear above or alongside organic results.
- Pay-Per-Click (PPC)
- An advertising model where the advertiser pays only when a user clicks on their ad, rather than paying for impressions or flat-rate placements.
- Quality Score
- A metric used by some PPC engines (notably Google AdWords) to rate the relevance and quality of keywords, ads, and landing pages. Higher scores lead to better ad positions at lower costs.
- Return on Investment (ROI)
- A measure of profitability calculated as (revenue from PPC − cost of PPC) ÷ cost of PPC, expressed as a percentage. A positive ROI means the campaign is generating more revenue than it costs.
- Search Engine Marketing (SEM)
- The broader practice of promoting websites through paid search ads (PPC) and sometimes including SEO. SEM encompasses all marketing activities related to search engines.
- Search Query Report
- A report showing the actual search terms users typed before clicking on your ad. Useful for discovering new keyword opportunities and identifying negative keywords.
- Split Testing (A/B Testing)
- Running two or more variations of an ad simultaneously to determine which performs better. The winning version is kept while the loser is replaced with a new challenger.
- Tracking Pixel
- A tiny image or script placed on a conversion page (e.g., order confirmation) that fires when a visitor completes a desired action, enabling accurate conversion tracking.