Understanding Key PPC Metrics & Concepts

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Real-Time Bidding (RTB)

Definition

Buying and selling online ad impressions through real-time auctions, occurring as a webpage loads.

Return on Investment (ROI)

Definition

A performance measure evaluating investment efficiency.

Formula

ROI = (Current Value of Investment - Cost of Investment) / Cost of Investment

Quality Score

Definition

Google's rating of keyword and ad quality/relevance, impacting cost-per-click (CPC) and ad rank.

Negative Keywords

Definition

Keywords preventing ad display for specific searches.

Impressions

Definition

The number of times your content is displayed.

Call-to-Action (CTA)

Definition

A statement prompting an immediate response, guiding potential customers.

Conversion

Definition

A valuable website action beyond a simple visit, specific to industry and company.

Homepage

Definition

A website's main page, often named index.html, containing links to other pages.

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