PPC Glossary

PPC Campaign – All that you need to know about it

To run, monitor and manage your PPC campaign effectively, you will need to understand the basics of a PPC Campaign. Here’s a quick list of some of the frequently used terms:

• Keywords: Keywords are the words or group of words that people use, to search in the different search engines.
• Keywords Matching: Keyword matching is the process by which you select those words or group of words that best describe your business, which are also used by the visitor in his query.

Types of keyword matching

The following are the main types of keyword matching most sites offer:

• Phrase Matching :This is a very specific way of matching your keywords. In this you choose the words such that your keyword will be matched with only those query strings that contain the keyword phrase in exactly that order. For e.g. if you choose dark chocolate as a phrase match, then only those queries that have 'dark chocolate' like melting dark chocolate or yummy dark chocolate etc. will show your ads and not those that contain chocolate dark, dark melting chocolate etc.
• Broad Matching: In this kind of match, you can use the keywords or phrase such that your ad would be shown for any query string containing these phrases anywhere in the string. For e.g. if your keyword is dark chocolate, then using broad keyword match, you can use it to get your ad displayed for any query that has dark chocolate like melting dark chocolate, dark melting chocolate, finding dark tasty chocolates and so on.
• Exact Matching :Exact matching is where the query string matching exactly with your keyword would alone be shown the ad. For e.g. if your keyword is dark chocolate, then the corresponding ad will be shown only to the query 'dark chocolate'.
• Negative Matching :Negative matching is when you choose the word for which you do not want your ad to be displayed for. For e.g. If you want your ads for only those looking for dark chocolate and not any chocolate, you can use chocolate as a negative matching keyword. This means that if the query is for chocolate alone, then your ads will not show up. This is very useful when you choose to use broad and/or phrase matching keywords.

Below are some of the common terms used in PPC Campaigns

• Impressions - is the total number of times the ad was displayed
• Clicks - is the total number of times the ad was clicked upon by visitors.
• Click Through Rate - commonly referred to, as CTR is the percentage of impressions that was converted to a click. It is calculated by the formula:
  CTR = (Clicks recieved/ impressions) x 100
  
• Daily Budget - is the maximum amount of spending that you allocate for your campaign.
• Max CPC/Max Bid - is the maximum cost you are quoting or willing to pay for every click you receive.
• Avg. CPC - is the average cost you will actually be paying for the click you receive.
• Position(Ranking) - is the position or the number at which your ad will be placed based on your and your competitors CPC/bid. All engines usually follow the simple rule of placing the sites bidding higher on top.
• Cost/Order - is the average cost incurred per order. It is obtained by Total cost/no of orders.

What next?

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