Pay Per Click Terms Every Advertiser Should Know

 

When I started out with Bing Ads PPC, I had no clue what a lot of common terms meant. I understand that newbies may have the same problem, so I decided to go over a few PPC terms every advertiser should know.

 

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Impressions – The number of times an ad has been displayed on search results pages or other sites associated with Bing Ads.

Click Through Rate (CTR) – The number of times your ad was clicked divided by the number of times the ad was shown (impressions). For example, if your ads had 580 clicks out of 24,682 impressions, your CTR is 2.35%

Average Cost-Per-Click (CPC) – The total cost of all clicks on an ad divided by the number of clicks. This is the average amount you pay each time your ad is clicked. For example, if your ad had 12,199 clicks and the average CPC is $0.05, you spend $627.84.

Average Postion – The average position on the web page for ads that were delivered during this period. Although it does vary, positions 1-4 usually appear at the top of the search results page and positions 5-10 usually appear in other locations (for example, the sidebar).

Quality Score – A measure of how competitive your ads are in the marketplace. This has three components: 1.) Expected click-through rate, 2.) Ad relevance, and 3.) Landing page experience. Your quality score ranges from 1 to 10, with 10 being the best.

Conversions – A conversion is a click that results in a sale or another measure of success. Conversions are measured by adding a little bit of code to your website pages so that a visitor’s movement through your site can be tracked.

Delivery – Delivery status tells you if your campaign, ad group, ad, or keyword is operating correctly.

Search Bid – The default bid for all keywords (or dynamic ad targets) in this ad group. These bids apply to ads delivered on search results pages.

Content Bid – The default bid for all keywords (or dynamic ad targets) in this ad group. These bids apply to ads delivered on the content network. Note: The content network is available only in the United States.

Bid Strategy Type – How you want to manage your bids. Currently, there are three bid strategy options:

1.) Manual Bid: You set your ad group and keyword bids, and Bing Ads uses these bids every time.

2.) Enhanced CPC: You set your ad group and keyword bids, and Bing Ads automatically adjusts your bids in real time to increase your chances for a conversion.

3.) Maximize Clicks: Bing Ads automatically sets your bids in real time to get as many clicks as possible within your budget. Not everyone has this feature yet.

 

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