pay per click advertising solution

some common online advertising glossary you need to know

Pay Per Click Advertising- an advertising model in which becontext pays publishers according to a pre-determined amount each time a user clicks on an ad; the amount is determined by the advertiser and is known as CPC.

Contextual Advertising- an advertising model in which advertisements on a site are targeted to users based on the site’s content. Becontext’s contextual advertising is highly specific as it recognizes the meaning of a particular sentence and matches it to the highest paying ad of the same topic.

In-Text Advertising- a form of contextual advertising in which ads are served within the content of a site through highlighted keywords. Becontext’s algorithms analyze content and extract keywords in order to match them to ads. The ads appear as the user hovers over a highlighted keyword with his mouse.

CTR- (Click-Through Rate) the average rate at which a site’s users click on an ad; this is calculated by dividing the number of clicks by net impressions to yield a percentage.

CPC- (Cost Per Click) the dollar amount that an advertiser offers for a click on a particular ad. CPC isn’t a fixed rate and varies from one advertising campaign to the next according to advertiser’s specifications.

eCPM- (Effective Cost Per Thousand)- the revenue for each 1,000 net impressions that a publisher’s site generates; a key tool in estimating revenue projections based on impressions.

Ad Copy: The actual text of an advertisement that explains what product or service is being advertised.

Auto Bidding: The opposite of Fixed Bidding. A type of keyword bidding in which an advertiser sets a maximum bid for a specific keyword but may pay less for each clickthrough of that keyword. For example, if Advertiser A bid $0.10 on a keyword, but the next highest bid (Advertiser B) on that keyword is $0.05, then Advertiser A will pay only $0.06 for each clickthrough. However, if Advertiser B changes his/her bid from $0.05 to $0.09, then Advertiser A will pay the full $0.10 (Advertiser A’s maximum bid) for each clickthrough.

Bid (Keyword Bid): The maximum amount of money that an advertiser is willing to pay each time a Web searcher clicks on an ad and visits their Web site.

Click Fraud: Activity that occurs in PPC advertising when an ad is repeatedly clicked by a person, group of people, or some type computer program or software.

Revenue Share- the percentage of a click’s revenue which is received by the publisher.

Click-through Rate (CTR): The amount of clicks that an ad receives, divided by the number of times that ad is displayed (clicks/impressions). For example, if an ad is displayed 100 times and is clicked on 7 times, that ad has a clickthrough rate of 7% (7/100).

Conversion Rate: The number of visitors (expressed in a percentage) who “convert” after visiting a site through an ad. “Convert” can mean purchase an item, sign up for a newsletter, etc. That varies from site to site. For example, if an ad has 50 click-throughs and 4 of the 50 people who clicked on the ad proceed to convert, the conversion rate = 8% (4/50 * 100). Higher conversion rates generally translate into more successful PPC advertising campaigns.

Fixed Bidding: The opposite of Auto Bidding. A type of keyword bidding in which you pay exactly what you bidded for each clickthrough. For example, if you bid $0.10 on a keyword, you will pay $0.10 for each clickthrough, regardless of other advertiser bids. See “Auto Bidding” for further explanation.

Impressions- the number of times a website is loaded by internet users; this is calculated by totaling all loads of all pages within the specified site. One impression = one display of an ad. If an ad is displayed 1,000 times, that is considered to be 1,000 impressions.

Keyword: A specific word or group of words (keyword phrase) that a Web searcher might type in when searching for the product or service that a Web site offers. For example, possible keywords for a site selling apples would be “apple,” “red apple” and “green apple.”

Landing Page: The specific Web page that a potential customer ends up on (or lands on) after clicking on an ad.

Minimum Bid: The lowest amount of money that a Pay Per Click Search Engine allows advertisers to bid for a certain keyword. This amount is usually $0.01, $0.05, $0.10, $0.20, or $0.50.

Paid Inclusion: A service that guarantees (for a fee) that a Web site’s pages will be indexed. The fee guarantees inclusion within the search engine’s results (and also that the search engine will spider the pages often) for a set period of time, usually one year. Paid inclusion guarantees that a Web site will be included in search results, but does not guarantee top placement within the search results.

Pay Per Click Search Engine (PPCSE): A type of search engine in which search results are determined by advertiser bids. Generally speaking, the advertiser that bids the highest amount on a specific keyword will show up as the No. 1 search result for that specific keyword.

PPC Management: A service that helps pay per click advertisers manage their various PPC advertising campaigns across multiple PPC search engines.

Return on Investment (ROI): The amount of money you receive in relation to the amount of money you spend. In terms of PPC advertising, the formula would be: (Revenue – Expenses) / Expenses. For example, if you spend a total of $100 on advertising and receive $150 in revenue from those advertising efforts, your ROI would be 50% –> ($150-$100)/$100 = $50/$100 = 50%.

Search Engine Optimization: An entire field devoted to increasing a Web site’s (or specific Web page’s) placement within the organic search results of one or more search engines.

Unique Visitor: A specific person who visits a specific Web site. Even if this person visits the Web site 12 times in one day, he/she is still considered only one unique visitor (not 12).

Visitor: A person who clicks on an ad or search engine results and actually views a Web site.