KPI Definitions Flashcards
Impressions
An impression is when an ad is fetched from its source, and is countable. Whether the ad is clicked is not taken into account. Each time an ad is fetched, it is counted as one impression.
Clicks
When someone clicks your ad, like on the blue headline or phone number of a text ad,Google Ads counts that as a click. A click is counted even if the person doesn’t reach your website, maybe because it’s temporarily unavailable. Relevant, highly-targeted ads are more likely to receive clicks.
CPC
Pay-per-click is an internet advertising model used to drive traffic to websites, in which an advertiser pays a publisher when the ad is clicked. Pay-per-click is commonly associated with first-tier search engines.
CPL
Showsthe ratio of expenses for a specific channel to the total number of leads this channel has brought over a specific period. The formula for calculating the cost of a lead is the following: For example, say you spent $1000 on an advertising campaign in Google Ads.
CTR
Click-through rate is the ratio of users who click on a specific link to the number of total users who view a page, email, or advertisement. It is commonly used to measure the success of an online advertising campaign for a particular website as well as the effectiveness of email campaigns.
Underspending
Underspending may happen if you choose a bid option of Target and Bid instead of Bid only. With Target and Bid, you restrict ads to a specific targeting method. … With Bid only, you are not restricted to the selected targeting method. With a group that is underspending, change the bid type to Bid only.
Lead Rate
Aratio showing howoften people who see your ad or free product listing end up clicking it. Clickthrough rate (CTR) can be used to gauge how well your keywords and ads, and free listings, are performing.
Quality Score
Quality Score is a metric used by Google, Yahoo!, and Bing that influences ad rank and cost per click of ads. To determine the position of the ad on a search engine, each ad is allocated using a process which takes into account the bid and the Quality Score.
3 Factors of Quality Score:
Click-through rate (CTR),ad relevance and.landing page experience
Impression Share
Impression share (IS) isthe percentage of impressions that your ads receive compared to the total number of impressionsthat your ads could get. Impression share = impressions / total eligible impressions.
Lost IS (rank)
Search Lost Impression Share (Rank) isthe percentage of search impression share lost out of the total eligible impressions, due to Ad Rank. Ad Rank depends on factors such as relevant keywords and targeted ads.
Lost IS (budget)
Search Lost Impression Share (Budget) isthe percentage of Search Impression Share lost out of the total eligible impressions, due to campaign budget. It is generally measured at the campaign level on digital advertising platforms.
