Some Basic SEM | Google Adwords Definitions for Beginners

Impressions : The total no of times the Google Ad Appears on the Right hand side of Search Engine Result Page or If we have Selected Content Network  , in that case on Content Network , It is called as Impressions.

Clicks : Clicks are , Each time user sees the Ad and Actually clicks on the same . This is counted as Click.


CTR  : CTR stands for Click Thru Rate , Which actually means Percentage of Clicks over Impressions.

i.e How many times out of those Impressions my ad actualy got clicked.

Mathematically that would be Clicks / Impressions * 100.

For Eg : we got 10 Clicks from 1000 Impressions , my CTR would be 10/1000* 100
  =  1 %

Normally CTR Ranges from 1% - 5 % in a normal Industry Campaign.
CPC

Maximum CPC : Max CPC ( Cost / Click ) is the Amount an Advertiser is Ready to pay to the Google for Each Click that happens in the account.

Average CPC : Average CPC is the Average Cost per click which actually is being reflected in the Google Adword Account.

Conversion or  Lead : Lets Say if user clicks and Lands up to some form page kind of stuff, Which means advertiser is wanting him to fill the form and become his Prospective Customer. We call these kind of pages as Form Page / Lead Page Etc.

Or Lets Say if a User clicks on Ad and Lands to a E commerce Website , Which means an Advertiser is wanting him to do some Shopping from his site, in such a Case when user actualy does Shopping from the site or fills the form etc , this is called as Conversion.

Cost / Lead  : An Advertiser Spends some Total Amount for doing Google Campaign, Lets Say an Advertiser spends 10,000 Rs on Monthly basis and Gets some 500 Forms Filled out of this Activity, Our Cost / Lead would be  10,000/500 , which Equals to 20 INR.

More on Adwords in my more Postsss