Pay-Per-Click (PPC)

Pay-Per-Click (PPC) is a digital advertising model where advertisers pay each time a user clicks on one of their ads. PPC campaigns can be set up on search engines, social media platforms, and other websites that offer advertising space.

Ad Rank: The position of an ad on a search engine results page (SERP) based on its relevance and bid amount.

Click-Through Rate (CTR): The percentage of users who click on an ad after seeing it. CTR is calculated by dividing the number of clicks by the number of impressions.

Conversion Rate: The percentage of users who complete a desired action, such as making a purchase or filling out a form, after clicking on an ad.

Cost-Per-Click (CPC): The amount an advertiser pays each time a user clicks on their ad.

Impressions: The number of times an ad is displayed to users.

Keyword: A word or phrase that advertisers target in their PPC campaigns to show their ads to users searching for that term.

Landing Page: The webpage that users are directed to after clicking on an ad. Landing pages should be designed to encourage users to take a specific action, such as making a purchase or filling out a form.

Quality Score: A metric used by search engines to evaluate the relevance and quality of an ad and the landing page it leads to. A higher Quality Score can lead to a higher Ad Rank and lower CPC.

Search Engine Marketing (SEM): The practice of using PPC advertising to promote a website on search engines.

Targeting: The process of selecting specific demographics, interests, and behaviors to show ads to the most relevant audience.

PPC advertising can be a highly effective way to drive traffic and conversions for businesses of all sizes. By understanding the key terms and metrics associated with PPC campaigns, product managers can make informed decisions about their advertising strategies and optimize their campaigns for maximum ROI.