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PPC Advertising Essentials

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PPC

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Pay-Per-Click (PPC) is an online advertising model in which advertisers pay a fee each time one of their ads is clicked.

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CPC

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Cost Per Click (CPC) refers to the actual price you pay for each click in your pay-per-click (PPC) marketing campaigns.

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CPM

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Cost Per Mille (CPM) is a marketing term that represents the price of 1,000 advertisement impressions on one webpage.

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CTR

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Click-Through Rate (CTR) is the percentage of people who click on your ad after seeing it. It can be calculated using the formula CTR=TotalClicksTotalImpressions×100CTR = \frac{Total Clicks}{Total Impressions} \times 100.

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Quality Score

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Quality Score is a Google AdWords metric that influences ad rank and cost by measuring the relevance of ads, keywords, and landing pages to the user.

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Ad Rank

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Ad Rank determines your ad position on a search engine page and is influenced by your bid amount, quality score, and other relevancy factors.

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Conversion Rate

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Conversion Rate is the percentage of users who take a desired action after clicking on an ad. It can be calculated as ConversionRate=TotalConversionsTotalClicks×100Conversion Rate = \frac{Total Conversions}{Total Clicks} \times 100.

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Remarketing

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Remarketing is a type of PPC advertising that allows you to display ads to users who have previously visited your website or used your app.

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Display Network

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The Display Network is a group of more than two million websites, videos, and apps where your ads can appear.

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Search Network

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The Search Network includes the search-related websites where your ads can appear when users search for terms related to your keywords.

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Keyword

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Keywords in PPC are the words or phrases that advertisers bid on, with the goal of causing their ads to appear in the search engine results for those terms.

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Long-Tail Keyword

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Long-tail keywords are longer and more specific keyword phrases that visitors are more likely to use when they're closer to a point-of-purchase or when they're using voice search.

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Ad Extension

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Ad Extensions are additional pieces of information about your business, like a phone number or links to specific pages, which can be added to your PPC ads.

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Bid

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In PPC, a Bid is the maximum amount of money you're willing to pay for a click on your ad.

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Landing Page

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The Landing Page is the web page a user is taken to after clicking on a PPC ad. It's typically crafted to continue the ad's message and convert visitors.

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Impressions

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Impressions refer to the number of times your ads appear on screens.

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Ad Copy

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Ad Copy is the text of an advertisement. In PPC, it's important for the ad copy to be relevant and compelling to encourage clicks.

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Split Testing (A/B Testing)

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Split Testing, or A/B Testing, is the process of comparing two versions of a webpage or ad to see which one performs better.

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Conversion Tracking

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Conversion Tracking is a tool that shows you what happens after a customer interacts with your ads - whether they purchased a product, signed up for a newsletter, called your business, or downloaded your app.

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Geotargeting

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Geotargeting allows advertisers to target their ads to appear in specific geographic locations.

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Negative Keywords

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Negative Keywords prevent your ads from displaying for certain words or phrases, ensuring your ads only appear for your target audience.

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Max CPC Bid Strategy

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Max CPC Bid Strategy is a PPC bidding method where you set the maximum amount you're willing to pay for each click on your ad.

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Daily Budget

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The Daily Budget in PPC is the amount of money you're willing to spend on a campaign each day.

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Campaign

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In PPC, a Campaign is a set of ad groups (ads, keywords, and bids) that share a budget, location targeting, and other settings.

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Ad Group

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An Ad Group is a container for your ads, keywords, and landing pages. Each ad campaign can have one or more ad groups.

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Automated Bidding

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Automated Bidding is a feature that allows the system to automatically adjust your bids in real-time to achieve your advertising goals.

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Broad Match

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Broad Match is the default keyword matching option that allows your ad to show on searches that include misspellings, synonyms, related searches, and other relevant variations.

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Exact Match

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Exact Match is a keyword matching option that allows your ad to show only when someone's search exactly matches your keyword or close variations of your exact keyword.

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Phrase Match

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Phrase Match is a keyword matching option that allows your ad to show for searches that contain the exact phrase, or close variations of the phrase, with additional words before or after.

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Return on Ad Spend (ROAS)

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Return on Ad Spend (ROAS) is a marketing metric that measures the amount of revenue earned for every dollar spent on advertising. It can be calculated as ROAS=RevenuefromAdCampaignCostofAdCampaignROAS = \frac{Revenue from Ad Campaign}{Cost of Ad Campaign}.

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Managed Placements

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Managed Placements is a targeting option in Google Ads that lets advertisers choose specific locations on the Display Network where their ads will appear.

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