First of all, I want to share one of the most used formula in PPC with you: i.e.
Pay per click ($) = Advertising cost ($) ÷ Number of ad clicks
It is a collection of relevant keywords under one name. Maximum 20,000 keywords can be added into an Ad Group.
An Ad Network is an online business that specializes in matching up of advertisers to the websites looking to host the ad. Ad networks work as brokers for both suppliers (sites with content that can host ads, for example, tutorialspoint.com) and buyers (the advertisers). An ad network relieves the websites from having to set up and invest in their own ad servers and tracking software.
Ad position is the order in which an ad is displayed on a webpage. For example, ad position "1" means the ad is displayed first on the webpage.
It is a value used to determine the Ad Proposition.
This is a marketing term used for the action you want the website visitor to take.
It is a series of relevant ad groups.
It is a metric showing how often a visitor clicks your ad after seeing it. It can be defined as the number of clicks per thousand impressions. CTR contributes to Ad Rank.
Conversion is the action the user wants when he clicks on an ad. It occurs when a visitor takes action. For example, the user makes purchases, signs ups, submits enquiry forms, views a page, or downloads, depending on the program's goals.
It is the measurement of the success of a paid campaign. It is measured by the number of potential visitors performing any of the desired actions such as buying a product, filling a form, etc.
For example, if there are 100 visitors to a particular webpage via a PPC ad, and three of those 100 visitors buy the product the website sells, then the conversion rate for that particular ad is three percent. The larger the conversion rate, the more successful the website is.
Cost Per Action or Cost Per Acquisition (CPA)
It is the amount you pay for every lead, sign-up, or purchases.
Cost Per Click (CPC)
It implies the amount you pay for every single click on your ads.
Cost Per Mille (CPM)
It is the amount paid for every thousand views of the PPC ad.
It is where you want the user to land when he clicks on the ad.
It is the name of a page of the website.
Delivery of ads to a particular geographic location of the users. It allows the advertisers to choose specific locations where they wish to show their ads.
In the context of online advertising, it is a measure of the number of times an ad is seen irrespective of clicking on it. Each time the ad displays, it is counted as one impression.
It is a search query made by a user. A word or a phrase of words entered in the search box by the user. The search engine matches your keywords and gives you relevant results on the Search Engine Result Page (SERP).
It is any standalone webpage distinct from the main website on which the visitor lands.
They are the ones for which you do not want your ad to appear.. Negative keywords are an important part of the keywords list.
They make sure that an ad appears only for a particular product the seller sells. They serve as ad filters. A negative keyword ensures that an ad does not appear for that particular term and reaches only the best potential audience.
For example, here is a list of typical negative keywords for books and manufacturing:
Books - Download, Audiobooks, Kindle, eBooks, Films, Movies, DVDs, and CDs.
Manufacturing - second-hand, used, rental, rent, hire, repair, and service.
Negative keywords can:
Prevent the users from browsing for other products the seller is not offering.
Help avoid paying for useless clicks.
Reduce average Cost-Per-Click (CPC) and increase return on the investment (ROI).
Increase overall Click-Through-Rate (CTR) of the PPC account in the long run.
Help create more relevant keyword groups with higher CTR.
Raise the Quality Scores.
Lower the investment cost.
Adding negative keywords is an important task in PPC strategy, which is scheduled once in a month. It is scheduled even more frequently, in case of large ads.
It is the maximum amount of fees an advertiser is ready to pay for a click.
Prospect is a potential user who can buy a product/service being advertised.
It is a dynamic metrics assigned to each of your keywords and ads. It determines the quality of your keyword, ad, and the landing page. High quality score boosts the ad rank.
Search Engine Result Page (SERP)
The page that lists the results returned by the search engine in response to a user query.
It is a classic method of testing an ad to determine the effectiveness of a PPC ad. It compares two versions of an ad that are identical except for one specific difference of a word or an image.
Keyword Research Tools
Keyword research tools help you to expand the list of keywords in most relevance of the seller’s product or service. These tools suggest numerous variations of the words from which we can select the appropriate one.
These tools include:
Google AdWords Keyword Planner
SEO Book Keyword Suggestion Tools
Geographic Location of Users
Publishing an ad for the customers where they are located elevates the popularity of the product and the possibility of higher ROI.
The method of determining the geolocation of the visitor with respect to country, state, region, IP address, or device ID of the user’s device, and showing ads as per the user’s location is termed as Geo Targeting.
The geographic location can vary from within a few kilometers distance from the seller’s business to faraway countries. If the business serves in several areas, the seller might wish to create separate ads for each location to track the performance separately.
Demographics of Users
User demographics are an important factor while targeting a market. Demographics include age, gender, income, occupation, marital status, literacy, and lifestyle of the ad recipients.
You need to consider the following demographics while creating an ad:
Age - Users’ needs and demands change with age.
Gender - Male and female users react differently towards consumer products, jewelry, magazines, etc.
Income - Users’ affordability varies depending upon their income levels.
Occupation - Users’ occupation affects their lifestyle which in turn affect the product or service they opt for.
Marital status - Experts say, single customers buy a specific product frequently than those who are married. Also, married people are inclined to pay more price. Marital status is an important factor.
Literacy - Awareness and comfort level of the users with handling internet activities affect PPC ads and in turn the seller’s business targets.
Lifestyle - The acceptance of a product is highly driven by the people’s day-to-day lifestyle.
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