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Business LibreTexts

11.2: Key terms and concepts

  • Page ID
    24922
  • Table 11.2.1
    Term Definition
    Clickthrough A click on a text ad link that leads to a website.
    Clickthrough rate (CTR) The total clicks on a link divided by the number of times that ad link has been shown, expressed as a percentage.
    Conversion rate The number of conversions divided by the number of visitors, expressed as a percentage.
    Cost per action (CPA) The amount paid when a certain action is performed by a user.
    Cost per click (CPC) The amount paid when a link is clicked on.
    Google AdWords Google’s search advertising program, which allows advertisers to display their adverts on relevant search results and across Google’s content network.
    Impression Each time an advert is shown.
    Key phrase Two or more words that are combined to form a search query, often referred to as keywords.
    Keyword A word found in a search query. For example, a search for ‘blue widgets’ includes the keywords ‘blue’ and ‘widgets’.
    Organic results Also known as natural results. Search results served by the search engine’s algorithm. The search engine does not charge website owners to list these results.
    Paid search advertising Usually refers to advertising on search engines, sometimes called pay-per-click or PPC advertising. The advertiser pays only for each click on the ad.
    Quality score (QS) A measure used by Google AdWords to indicate how relevant a keyword is to an ad text and to a user’s search query.
    Return on investment (ROI) The ratio of profit to cost.
    Search term The keywords a user enters when searching on a search engine.
    Search engine results page (SERP) The actual results returned to the user based on the search query. Sponsored results are search engine results that are paid for by the advertiser.
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