Pay Per Click Advertising | Social Media Management Video Marketing | Search Engine Optimisation
July 22nd, 2015 | By: Suzii Fido
PPC Terminology Explained – Part 2
PPC Terminology continued – OK so last week we covered some of the mind blowing terminology used in PPC advertising. If you missed it, here it is PPC Terminology Explained Part 1 Today, we continue to assist your understanding of the industry.
Click Through Rate
Click Through Rate or CTR as your Pay Per Click consultant calls it, is the number of clicks your ad receives divided by the amount of times the ad is shown (impressions). For example if your ad campaign had 10 clicks and was shown 1100 times, you would have a 1.1% CTR. It is considered acceptable to achieve anything over 1% . This can be measured at all levels of the campaign i.e. Overall campaign, Ad Group, Ads and keywords
Cost Per Click
Cost Per Click (CPC) is what you are paying per click. In AdWords you set a maximum CPC which is the highest price you are prepared to pay for a click on a particular keyword (you usually pay less) and the actual CPC is what you eventually pay and this can differ for the same words every time a search is carried out. For example you could set your maximum CPC at £5.00 but your actual cost per click is £4.23. Next time that keyword is shown, it may cost you £4.76. All clicks are then averaged which gives you your average CPC. (total actual spend divided by how many clicks)
Cost Per Acquisition
CPA (more commonly referred to as Cost Per Conversion) is what you need to spend on your campaign to achieve a desired action, i.e sale, contact form, phone call etc. It is worked out by your spend on AdWords divided by the amount of conversions the campaign has achieved. For example if you spent £100 on your AdWords campaign and achieved 10 conversions for this spend, your CPA would be £10.
Top vs. Side
Top vs. side is not all about beef. If refers to the positioning as to where your ad shows. As a Pay per Click specialist I have my own targets for this. I always aim for the average position (Ave Pos) between 1.9 and 2.4 which means the ads will appear in the top 3 positions, usually 2nd. This usually generates much higher volume of quality leads in these positions. Why don’t I aim for Position 1? I have noticed that unless the potential customer is looking for an emergency service i.e. 24hr Locksmith or Emergency Gas Engineer then there appears to be a psychological barrier preventing them from clicking on the first ad they see and I have actually seen reduced clicks as a result of the positioning being too good
These are where you can add more detail to appear in your adverts. The four ad extensions commonly used are:-
Sitelink Extensions – These are where you can add additional landing pages for buyers to choose from, showing more that you have to offer. For example, a link directly to your special offers page or contact us details. These are displayed under your ad (See below)
Call Extensions – This is where you can add a telephone number to appear on your ad. This can be a great way to gain Free results as the buyer can contact you without clicking on the ad. (See below)
Location Extensions – These are used especially when advertising for local business as this tells a buyer your address when they are looking for somewhere close to them. (See below)
Call-out Extensions – These are very similar to sitelink extensions except they are not clickable links. These are used to advertise USPs for your business. (See below)
So next time your Pay Per Click consultant tries to bamboozle you with jargon, you are on the same page. Keep an eye out for our series of blogs which will go into more details on how to get the most out of your Google AdWords campaigns.
If you have already been brave enough to have a go at creating a Pay Per Click campaign yourself, click the button below and I will carry out a FREE Performance Check on your existing account and show you how you can optimise your budget. Even if you have a PPC Agency currently looking after you, the FREE Performance Check will let you know if they are giving you the best results possible.