If you’re just getting into PPC — pay per click, that is — you might find yourself a little lost in all the acronyms being thrown about. Here at ClickSweeper, we’ve assembled a friendly guide to common acronyms you’re likely to encounter as you delve into PPC.
CPC: cost per click. The CPC refers to the dollar amount you pay every time someone clicks your ad. How high or low your CPC is will depend on how competitive your industry or keywords are, your click through rate (CTR), and other factors.
CPM: cost per thousand [impressions]. For certain types of content network ads, you can opt to pay per thousand impressions (times your ad is shown) rather than by click. The minimum CPM Google allows is .25.
CPV/CPA: cost per conversion/cost per acquisition. The CPV is calculated by dividing the amount of money spent on advertising by the number of conversions. E.g., if you spent $1,000 in the month of June on clicks and had a total of 100 conversions, the CPV is $10.
CTR: click through rate. The number of clicks divided by the number of impressions (how many times your ad appears). If you have 2 clicks in 100 impressions, you have a 2% CTR. Anything above a 1% CTR is considered very good.
PPC: pay per click. A type of advertising on Google, Yahoo, and Bing in which a user’s query trigger ads targeting the same keywords. Advertisers pay only when a user clicks on their ad.
ROI/ROAS: return on investment/return on ad spending. ROI compares the amount of money you made with the amount of money you spent. Using our previous example, if you spent $1,000 on pay per click advertising and made a total of $5,000, your ROI would be 500%.
SEM: search engine marketing. Includes both pay per click advertising and search engine optimization (see below).
SEO: search engine optimization. Includes website, link-building, blogging, and social media strategies to push a page further up search engine results, ideally to the first page.
SERP: search engine results pages.
Now that you know what all those acronyms mean, you can probably also guess why we use and love the ROI and CPV-driven automated bidding strategies in our PPC management software. Try it for free today!