I thought it might be helpful to explain some of the common acronyms associated with pay per click advertising. Here are some terms you need to know:
CTR – Click Through Rate. This is the number of times that viewers of your ad click to go through to your website. It is expressed as a percentage based on the number of viewers divided by the number of clickers.
CPC – Cost Per Click. This is how much you are paying for ad clicks. It is usually expressed as an average because most of the time you will not be paying the same amount. The actual cost per click fluctuates depending on the market at that time, but it is always within the range of your preferences.
CPM - Cost Per Thousand Views – This is how much you are paying every time 1,000 people view your ad.
Before you start your pay per click advertising campaign you should familiarize yourself with the terms in your report and understand what the reports are telling you. Otherwise, you might make a decision based on an incorrect assumption.
