What is PPC? 11 Basic Terms Explained for Beginners

Learn everything about PPC in this simple guide on what is PPC

PPC, short for pay-per-click, is a framework of internet marketing. PPC is a type of advertising in which advertisers have to pay a fee to boost traffic on their website. It’s a way of buying visits to have the website ranked on SERP, also known as the search engine result page. Advertisers bid for the ad placement, the SERP will then direct the visitors to the website through these ads. A certain fee is paid by the advertisers every time a visitor clicks their ad.

Terms to know

We have put together a glossary to help you have a basic understanding of all the factors involved in PPC advertising.

1. Search Engine Marketing or SEM

Search engine marketing is a blanket term that refers to digital marketing strategies. SEM involves the promotion of websites by creating ad campaigns. This helps create a seamless user journey that boosts the ranking of the website on the search engine result pages.

2. Cost Per Click or CPC

CPC is the form of bidding that decides the placement of the ad in an auction. It refers to the price advertisers pay for each click on their ad. The higher the bid better is the placement of the ad. 

3. Ad Rank

It’s a value that determines the fate of your ad in SERP. As the name suggests, ad rank decides the position of the ad. The ranking of the ad depends on certain factors including, quality score, ad text, and landing page.

4. Quality Score

Quality score acts like a tool that determines how relevant your ad and landing page are. Quality score is the way Google rates the quality and usefulness of your ad compared to other advertisers.

5. Ad Text

Ad text is a form of link used by advertisers to draw attention to their service or brand. Ad text plays a part in determining the quality score, therefore, it should match the targeted keywords used in the ad.

6. Landing Page

A landing page plays a crucial role in marketing strategy by converting visitors into leads. It is a static page on the website where the visitor will “land” after clicking your ad. 

7. Keywords

Keywords are the search terms that searchers enter into search engines. Keywords targeted in the ad determine whether to bring the visitors to your website or not. Keywords should be selected wisely as they help promote traffic on your site.

8. Ad Group

An ad group contains a series of ads based on relevant keywords used in the marketing campaign. Ad group organizes ads that share a common theme. Creating compelling ad groups in PPC marketing can help drive more traffic and increase conversions. 

9. Campaign

An ad campaign is a series of organized, strategic activities with an approach to foster a specific goal. The purpose of an ad campaign is to raise awareness about a certain product or service for increasing conversions or promoting sales. Setting up target-specific ad campaigns is usually the first step in PPC marketing.

10.  Cost per Mille or CPM

Cost per Mille is a form of measurement used in advertising. CPM is used to determine the cost that an advertiser has to pay once his advertisement reaches one thousand views or impressions. Therefore, it is also referred to as cost per thousand.

11.  Maximum Bid

The maximum bid refers to the highest amount the advertisers are ready to pay per click on their ad. A maximum bid can be allocated to a whole group of keywords or a single keyword. It affects overall PPC costs.

If you are eager to know more about PPC, Local Marketing Vault is the ideal online course for learning all about PPC. At The Daily SEM, our experts keep you up to date with the latest content.