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These terms are commonly used in pay per click
advertising networks. Understanding the terminology
will assist webmasters in determining how they
should set up their campaigns.
Ad Inventory - The types of advertisements
that are available in an advertising network.
Bid - Bid refers to the amount that each
advertiser is willing to pay for each click.
Click Fraud - Click Fraud involves sending
fraudulent clicks to a PPC listing. The clicks
can be artificially generated via automated technology
methods (bots) or via manual clicking. The intent
of the fruad may be to raise money for the site
hosting, ad space, or to financially hurt the
advertiser. *Yahoo encourages users to contact
them if they see a dramatic change in the number
of clicks, the click-through rate, or if there
are discrepancy in the server logs and number
of reported clicks.
Conversion Rate - The number of clicks
that result in the visitor taking the desired
action. Usually this the number of users that
end up purchasing.
CPC (Cost Per Click) - Amount of money
the advertisers is willing to pay per click
CTR (Click Through Rate) - The number
of clicks divided by the number of impressions
a specific keyword or ad received.
Impressions - The number of times an advertisement
appears.
Max Bid - The most that an advertiser
is willing to pay for each click.
PPC (Pay Per Click) - Advertisers only
pay when their advertisement is clicked.
ROI (Return on Investment) - The amount
of money made when compared to the amount spent
for a specific advertising model.
Tracking URL - A specialized url that
incorporates the keyword search query that resulted
in the traffic. Marketers use tracking URLs so
that they can track what keywords or phrases result
in traffic, and convert to sales.
Related Articles:
What is Pay Per Click?
Pay Per Click Math
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Developer
101
Pay Per Click Terms