AdTech industry is vast and ever-changing. It might be hard to keep up with all the new slang, but worry not - our glossary will keep you properly updated!
The act of clicking a link that takes a user to a website. Even while clicking through on an ad is the most common response, it's not the only way people engage with it. Users can enter a firm's name directly into a search engine box or its URL into the browser bar to access information about the company.
However, this only applies if the firm name or URL appears in the advertisement. There are other ways for people to interact with ads than by clicking through to them. Instead of typing in a firm's URL, customers can use a search engine to look for the company name. If the firm name and URL appear in its advertisements, this is a given. Click-through must be accurately counted by removing “robot clicks” and “double clicks.” When click-throughs are utilized as the basis for payment, this is even more critical.
A good click-through is relative to your industry, the set of keywords you are bidding on, and individual campaigns within a PPC account. The number of people who click on your adverts isn't merely a measure of their relevance to searchers. The more people who click on your ad, the higher your Ad Rank will be on search engine results pages. Its ad rank determines your ad's position in the search results.
The highest bidder does not win the top spot. The highest Ad Rank advertiser wins. The Ad Rank methodology takes Click-Through into account heavily. The Quality Score measures how relevant an advertiser's keywords, ad copy, and landing pages are to potential customers. Higher Quality Scores are more likely if your ads and landing pages are more relevant to the user. Search engines use metrics such as click-through rate, ad relevancy, and user experience on the landing page to determine Quality Scores. Greater Quality Scores are easier to come by with a higher CTR.
PPC ads should be cost-per-sale optimized if you want to maximize sales while minimizing costs. Suppose your objective is to create leads at or below a pre-determined price per lead level. CTR should not be your primary KPI unless your company's goal is to generate a large amount of PPC traffic. In reality, there are instances in which a low CTR is acceptable — and even beneficial. When working with uncertain terms, one of such instances comes up. It's impossible to run a PPC program without some degree of ambiguity. When looking for your product or service, they may use general terms that have varying degrees of meaning to various individuals.
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