After 1 week training, my PPC trainee asked me what is CTR, what is CPC and Quality Score. Then only I remembered that I forgot to explain her these terms. Ok. Here I am explaining some of the common acronyms associated with pay per click advertising. Before starting your PPC advertising, you should understand these terms thoroughly. Otherwise, you might make a conclusion based on an incorrect guess.

CTR - Click Through Rate. This is the number of times that viewers of your ad click to go through to your website. We can calculate CTR by this formula-

CTR=Clicks/Impressions * 100

CPC - Cost Per Click. This is how much you are paying for clicks on your ads. It is usually expressed as an average because most of the time you will not be paying the same amount. The actual cost per click varies depending on many factors like competition and some other factors, but it is always within the range of your pre-set values.

CPC= Costs/Clicks

CPM - Cost-per-thousand Impressions - This is how much you are paying for each 1000 impressions of your ads. That means, for every 1000 views of your ads, you have to set a budget and pay that.

Labels: google adwords, MSN adcenter, pay per click, PPC management, yahoo search marketing

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