The Ultimate Glossary of Terms about Pay Per Click

Taking a hard look at the budget to see where cuts can be made? You’re not alone. Thanks to recent events, almost every department in your company is likely to experience some cuts. You can’t just stop advertising, though. How do you make the most of what you have to spend? Many are looking to Pay Per Click, or PPC, ads as the answer.

Why Pay Per Click?

According to a 2019 Hanapin Marketing Study, nearly 79% of marketers say PPC ads are incredibly important for their companies. Wondering why so many even consider this form of advertising? It offers some serious advantages. It works well even for smaller budgets, a must in a time where every budget is stretched thin. It accesses highly targeted traffic, and it’s a fast form of advertising that pays off just as quickly. Moreover, PPC is incredibly flexible, allowing you to change your targets as soon as you realize you’re off track.

With so many benefits, why don’t more companies deploy and stick with this strategy? It’s simple – it has the potential to drain a marketing budget very quickly. If it’s done well, though, you have additional dollars to reinvest and expand your marketing campaign. Ensuring added revenue is the outcome, though, isn’t easy, and before you can even develop the right strategy, you have to understand exactly what you’re doing, and that can start with a better understanding of the terminology involved.

The Ultimate Glossary of Terms about Pay Per Click

A Quick Glossary

Any how-to guide will throw quite a bit of vocabulary at you quickly, so if you’re considering PPC advertising, you’ll want to start by taking a closer look at the terms involved with the practice. This comprehensive list should help you better understand the nature of this type of advertising as well as how your company should move forward.

Auto Bidding: Depending on where you plan to place your ad, you may be able to auto bid for certain terms. Should other companies be bidding on a given keyword, your bid will automatically increase within the limits you’ve set by $0.01 per bid. It can actually mean lower costs in the long run, but it could get expensive if you don’t set the right limits.

Bounce Rate: This is a PPC metric that helps you understand how many times web visitors leave your site without visiting any other pages. It helps you understand that while the ad was effective enough to allow them to click in, the landing page didn’t interest them enough to click any further.

Conversion: This term refers to a visitor to your site turning into a buyer from your site. Sometimes called the “conversion rate,” it is expressed as a percentage and used as a metric to evaluate the success of given ads.

Copy: These are the words involved in your ad. Copy can include the headline and the text of your site, and ensuring that it is as persuasive as possible for a given audience is an absolute must.

CPC: This acronym stands for Cost-Per-Click. It’s how much you end up paying the ad publisher for each click that ends with a visitor on your site.

CPL: This acronym stands for Cost-Per-Lead. It’s the amount you actually pay the publisher to end up with a single lead on your advertisement. It’s different from CPC, as you have to evaluate how often those clicks actually end in real, usable leads.

CPM: This one stands for Cost-Per-Mille, a Latin term that means thousand. So, it actually stands for Cost per Thousand Impressions. It’s the price you’ll pay to get to 1000 visitors. 

CTR: Another acronym, this one stands for Click-Through-Rate. It’s a metric you can find by dividing the number of clicks with the number of impressions.

Impressions: This is the number of times the published of your ad actually displays it in the results of a search.

Quality Score: This term typically only applies to Google AdWords PPC ads. For every term you consider creating an ad campaign around, you’ll get a quality score on that term. It helps to measure just how relevant that word is both to your ad and a given search query. Higher quality scores typically mean you can rank for lower amounts of money.

ROAS:This is an acronym for Return-On-Ad-Spend. It’s essentially the amount of revenue you generate for every dollar you’ve spent. If you’re familiar with the term Return-on-Investment (ROI), this is essentially the same thing. It can help you decide if your advertising strategy actually converts to sales at the right overall rate.

PPC advertising can be the right choice for your company, but the jargon that you’ll see as soon as you try to understand it,this type of advertising can be also overwhelming. Knowing terms like these can help you get a better feel for this helpful, yet sometimes complex form of advertising and it may even help you decide if it’s right for you.

Author’s Bio:    

Hitesh is a digital marketing strategist and entrepreneur with more than 12 years of experience in digital marketing, start-ups, branding, and customer acquisition strategies. Hitesh is the CEO and Founder of Reposition Group, which encompasses a number of companies in the digital sector including,, and, amongst others.

Leave a Reply