Posts Tagged ‘ROI’

PPC terms

Thursday, October 4th, 2007

  • CPC: Cost per click. The actual dollar value you pay. Some people reserve CPC for banners that charge by the click and PPC for sponsored ads on search engines.
  • CPM: Cost per thousand impressions. Allows you to compare costs from one ad venue, or type, to another. If an ad costs $500 for 10,000 impressions, your CPM is $500 divided by 10, or $50. Because most PPC sites also provide the number of impressions, you can compute CPM for your PPC campaign.
  • CTR: Click-through rate. The number of clicks divided by the number of impressions. Expect costs for a click-through to be higher than costs for an impression.

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