If you are a newbie to PPC business it may be hard for you to grasp the meaning of all the PPC-related terms. What makes things even worse is that different networks may assign the same terms to slightly different concepts and PPC phenomena. To make you feel completely at ease in the PPC world here we are introducing our special PPC glossary.
2nd tier PPC Network − PPC Networks other than Google, Yahoo and Bing (these three are called 1st tier networks). As a rule they offer lower prices than 1st tier networks. Even if you run successful Google Adwords campaign, starting one in a 2nd tier network may help you diversify your ad placements and connect to small search engines and unique publishers that you otherwise won’t be able to reach.
Adometry score − an evaluation of traffic quality on the scale of 0 to 999 that reflects traffic ability to convert.
Advertiser − a businessman or/and website owner who wants to promote a product or a service. Advertisers submit their ads to advertising networks − the ads then get placed on ad platforms. Each ad leads to the landing page that contains information about what is being advertised.
Audience development − a set of activities aimed at growing your website audience.
Banner ad − as opposed to text ad − an ad that contains a picture or a small video.
Bidding system / Bid-based PPC – the payment system that implies that advertisers compete for the ad impressions by offering higher costs per click. This happens because the number of advertisements is higher than the number of available ad placements. The advertiser that bids higher has more chances to get his ad displayed. The opposite is a flat-rate PPC when there is a fixed rate for each click.
Conversion − an action you expect a person to make on your website (examples: purchases, subscriptions, video views).
CTR (Click-through-rate) − the number of clicks on the ad divided by the number of ad impressions. The figure may indicate the relevance between the audience on publisher website and the ad message. On the other hand it reflects the clickability of the ad text.
Display advertising − basically it’s synonymous to banner advertising. But in PPC context it is normally used to describe non-keyword targeted advertising as opposed to search advertising.
Fast click – very likely to be a bot-generated click. Fast clicks are identified by the suspiciously short time period between the impression and the click.
High RON, Ultra RON, Video RON − these are terms coined by REACH Network managers and stand for particular traffic quality types. Check Marketing Kit for Advertisers for detailed information on this.
Impressions − the action of the ad message being displayed on a website. In PPC you don’t pay for the number of impressions, but rather for the number of clicks. Still impressions work great for the online exposure of your ad.
Invalid click − a click generated by malware. The PPC system detects these clicks and redirects them to a special resource, so you don’t pay for the invalid clicks.
IPs Blocklists- the list of IPs spreading malware and generating bot traffic. In advertising these blocklists include IPs which send traffic that doesn’t convert. IPs blocklists are often put together by companies dealing with traffic quality. REACH Network offers an option to apply Adometry IPs blocklist when setting a campaign.
KPI (Key Performance Indicators) – specific measurements that evaluate particular activity within a business. Each business has its goal KPIs. If these are achieved − the business reaches its strategic objectives. In PPC KPIs normally refer to specific traffic parameters required by the advertiser for him to achieve his campaign goals. (KPI example: goal ToS = 2 min, goal PV = 4, goal view-through-rate = 65%).
Landing page − the page that your ad message leads to. Its performance is thoroughly tracked to determine the effectiveness of PPC advertising.
Media Network − a set of websites with huge amount of content normally owned by one publisher. The websites of a media network contain entertaining, regularly updated content and have a significant number of daily visits. Media Networks are ideal publishers.
Minimal bid − the smallest bid required to get the desired traffic type.
PPC / CPC (Pay-Per-Click/Cost-Per-Click) − an advertising model that implies that the advertiser pays for each time someone clicks on their ad text. Other models include CPM ( implies paying for a thousand impressions) and CPA (suggests payment for action/conversion). We on REACH Network only offer PPC.
PPC budgeting − the set of activities aimed at managing the spendings and earnings on PPC campaign accounts.
PPC management − set of activities aimed at monitoring and optimizing PPC campaigns.
PPC Network − a network that brings together publishers and advertisers so that 1) the advertisers may get their ads published on the web platforms of the publishers and 2) the publishers may monetize their traffic.
Publisher − an owner of a website or a blog with a strong desire to monetize their traffic through online advertising.
PV (Page views) − the number of pages viewed by the user. Specific number of PV is used as a KPI by the advertiser. Publisher traffic should feature certain PV value for a specific quality type to be assigned to it. For traffic arbitragers PV is a more significant parameter than ToS − that’s because the more pages the visitor views − the more ads he/she is exposed to.
ROI (return on investment) − the percentage of earnings in relation to costs (is estimated by dividing the former by the latter). Every online businessman is aiming at the highest possible ROI.
RON traffic (run-of-network traffic) − traffic that is not filtered by keywords. It’s cheaper than search traffic and considered great for building up brand awareness, website statistics improvement and other goals depending on quality level. Premium RON traffic also brings conversions.
Search traffic − traffic filtered by keyword or keyword phrases stated by the advertiser.
Text ad − an ad that basically consists of a title, a description and an URL of the landing page.
ToS (Time on site) − the amount of time spend by the user on the website. Specific value of ToS is used as a KPI by the advertiser. Publisher traffic should feature certain ToS value for a specific quality type to be assigned to it (for example, High RON or Ultra RON).
Traffic arbitrage − an activity that involves buying cheap traffic for your website (=advertising your website) and then selling it at a higher price (by becoming a publisher). The people involved in that activity are called traffic arbitragers.
Traffic monetization / Website monetization – the process of converting traffic on one’s website into money. Traffic monetization methods include affiliate marketing, creating membership areas and surely engaging in PPC.
And that would be the last term covered in this article. If some PPC terms seem unclear to you and are not mentioned in the article – ask for the definition in the comments!