PPC Terminology explained part 2

PPC Terminology Explained – Pt 2


In the last article, we covered some of the mind blowing terminology used in PPC advertising. If you missed it, here it is PPC Terminology Explained Pt 1 Today, we continue to assist your understanding of the industry.

Click Through Rate

Click Through Rate or CTR as your Pay Per Click consultant calls it, is the number of clicks your ad receives divided by the amount of times the ad is shown (impressions). For example if your ad campaign had 10 clicks and was shown 1100 times, you would have a 1.1% CTR. It is considered acceptable to achieve anything over 1% . This can be measured at all levels of the campaign i.e. Overall campaign, Ad Group, Ads and keywords

Cost Per Click

Cost Per Click (CPC) is what you are paying per click. In AdWords you set a maximum CPC which is the highest price you are prepared to pay for a click on a particular keyword (you usually pay less) and the actual CPC is what you eventually pay and this can differ for the same words every time a search is carried out. For example you could set your maximum CPC at £5.00 but your actual cost per click is £4.23. Next time that keyword is shown, it may cost you £4.76. All clicks are then averaged which gives you your average CPC. (total actual spend divided by how many clicks)

Cost Per Acquisition

CPA (more commonly referred to as Cost Per Conversion) is what you need to spend on your campaign to achieve a desired action, i.e sale, contact form, phone call etc. It is worked out by your spend on AdWords divided by the amount of conversions the campaign has achieved. For example if you spent £100 on your AdWords campaign and achieved 10 conversions for this spend, your CPA would be £10.

Ad Extensions

These are where you can add more detail to appear in your adverts. The three ad extensions commonly used are:-

  • Sitelink Extensions – These are where you can add additional landing pages for buyers to choose from, showing more that you have to offer. For example, a link directly to your special offers page or contact us details. These are displayed under your ad (See below)

sitelink extensions


  • Call Extensions – This is where you can add a telephone number to appear on your ad. This can be a great way to gain Free results as the buyer can contact you without clicking on the ad. (See below)

Call extensions



  • Call-out Extensions – These are very similar to sitelink extensions except they are not clickable links. These are used to advertise USPs for your business. (See below)

callout extensions



Bid Adjustments

Bid adjustments allow you to show your ads more or less frequently based on where, when, and how people search. For example, sometimes a click is worth more to you if it comes from a smartphone, at a certain time of day, or from a specific location. This bid is adjusted in the form of a percentage and can be '+' or '-' the original bid for a particular keyword. For example, if you can see more conversions from ads seen on mobile devices, you can choose to increase the maximum amount you are willing to pay for a click for searches carried out on smart phones.

Current Max Click Per Cost - £3.00

Bid Adjustment on mobile +20%

Potential Cost Per Click on Mobile - £3.60

Different types of bid adjustments include device, location, Ad scheduling, and demographics.

Final URL

This is the website page that your ad is sending traffic to when someone clicks on it.  It is recommended to send your visitors to a page that is most relevant to the ad as this increased the Quality Score, which can give you better ad position and lower click costs.

Display Path

This is the webpage address that is shown with your ad. This begins with your main domain address i.e. www.marketingwithethics.com, and then you have 2 'Paths' that can be added with up to 15 characters each, which can be used to add additional keywords that are relevant to your ad. For example, Display URL would show as www.marketingwithethics.com/Path1/Path2 which could be www.marketingwithethics.com/AdWords/Specialists. We do not have an actual webpage with that name, but it does give extra credibility to our ad and is relevant to the where the ad is sending people.


So next time your Pay Per Click consultant tries to bamboozle you with jargon, you are on the same page. Have you heard any other terminology they I haven't covered here? If so, comment below and I will clear it up for you.
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Posted in Google AdWords.

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