Top 10 Pay-Per-Click Acronyms

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Top 10 Pay-Per-Click Acronyms

Did you know we also manage digital marketing with FZA Digital? Here are some common PPC terms to know, straight from the digital marketing experts at FZA Digital!

Whether you’re new to the world of PPC or could just use a refresher, the fusionZONE team has compiled the top PPC acronyms everyone should know. Here, we’ll not only take a look at what these popular PPC acronyms stand for but how they differ from similar terms when you should consider each ad campaign model, and more.

1. PPC

Let’s start with Pay Per Click. PPC is both a general, blanket term for online paid advertising as well as a more specific term that means you are paying when a user takes a certain action, such as clicking on your ad.

2. CPC

Cost Per Click is sometimes used interchangeably with the term “PPC,” but CPC typically refers to the specific cost that you pay for each click. If you pay $1 for every ad click and ten users click on your ad, then your CPC is $1, and your total cost for that ad campaign is $10.

3. CPM

In contrast to CPC, Cost Per Thousand Impressions or CPM is an advertising model where the advertiser pays for each ad view, not click. CPM ad campaigns are often utilized when a business or advertiser seeks to create awareness around a brand, product, service or website.

When considering Cost Per Thousand Impressions for your ads, keep in mind that CPM does not distinguish unique views. In other words, if one user is served your ad five times, that’s five impressions, even though only one user viewed them.

4. CPL

Another ad pricing model is CPL, or Cost Per Lead, where you’ll only pay when a lead is delivered to you via the ad campaign. Examples of leads typically initiated through CPL advertising include filling out a form or submitting contact information.

5. CPA

The Cost Per Acquisition is a lot like CPL but focuses on turning users from a lead into a customer in some form. In other words, CPA is the cost of acquiring a new customer via a specific campaign.

What constitutes a customer acquisition? Well, it depends on your business and campaign goals. The advertiser decides which action they’d like a user to take, which determines when an acquisition occurs or when you pay for that ad conversion.

6. KPI

Determining your goals and success metrics for any advertising campaign is crucial. That’s where Key Performance Indicators play a major role. They are the metrics you plan to measure, whether clicks, impressions, acquisitions or other factors.

Determining these indicators for success can help you decide which type of ad campaign will best align with your goals.

7. CTR

The Click Through Rate is a campaign’s ratio of clicks to impressions. CTR is represented by a percentage, where total clicks are divided by the total number of times your ad has been shown, then multiplied by 100. So, if your ad receives three clicks on 100 impressions, its CTR is 3%.

8. VTC

A View Through Click captures users who do not click on your ad but later convert on your website during a separate session. VTC helps measure campaign effectiveness beyond simply ad clicks, leads or acquisitions, since it considers a later action the user takes that may have resulted from the initial ad impression.

9. PPV

Pay Per View or PPV is an online advertising model that relies on an ad being visible on the page and in clear view of the user for a given duration of time. Utilizing a PPV campaign strategy helps ensure that an ad impression is actually seen by the user and is especially helpful to combat quick scrolling or brief page visits.

10. RTB

When CPM ad inventory goes unsold, advertisers can utilize Real Time Bidding through a programmatic auction to purchase the ad space, potentially at a reduced price. The RTB auction’s highest bid takes the ad inventory’s priority.

Want Help With Making Sense of PPC?

If you’d like assistance with optimizing your PPC advertising efforts, don’t hesitate to contact the experts at fusionZONE Automotive. Our team of PPC specialists can help ensure you’re getting the most out of your ad spend.

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