Basic PPC terms you need to know

In PPC, you will come across a variety of abbreviations, concepts and tracked metrics that you might not understand. Here are the most used:

PPC – Pay-Per-Click, advertising pricing.

CPC – Cost-Per-Click, the cost of a single ad click. Sometimes the Czech language uses the CPC (cost-per-click) equivalent.

Impression – indicates the number of times an ad is displayed. In search, this means how many times your keyword was searched for and your ad appeared.

Clicks – The number of times someone clicked your ad.

CTR (Click-Through-Rate) – How many percent of those who saw your ad clicked on it. That is, the proportion between clicks and impressions. If your ad had 100 impressions and 5 clicks, the CTR is 5%.

Conversions – Goal Count You can track different goals – subscriptions, newsletter sign-ups, contact submissions, and so on. Once a user has met this goal, you’ve achieved a conversion.

Conversion rate – conversion rate – how many percent of those who clicked your ad converted. In other words, the ratio between conversions and clicks. If 100 users clicked on your ad and you received one order (conversion), the conversion rate is 1%.

Conversion value – How much conversion value was worth to you. In the case of an order, it is the price of goods in the basket that the customer has purchased.

ROAS – Return On Ad Spend is calculated by dividing your revenue by expressing the percentage you earned. If your campaigns resulted in 100,000 conversions and cost 10,000, ROAS is 1000%. It is therefore the reciprocal of the PNO.