We believe this glossary will help you understand how PPC is really calculated. If it does not make Sense it does not make Dollars.

• Lead -A click to the site from a Pay Per Click ad.
• Conversion – An online Sale.
• Conversion Rate – The rate in which Leads are Converting into Sales.
• CPA – Cost Per Acquisition or Cost Per Customer.
• Cost – Actual Spend of Advertising Channel being tracked.
• Revenue – Actual dollar amount as a result of the online sales transactions.
• Avg. Rev. Per Sale – Total Revenue divided by the number of Conversions.
• ROAS – Return On Ad Spend. (100% ROAS = break even. $1 spent = $1 in return)
• CPL – Cost Per Lead or Cost Per Click

 

This entry was posted on Tuesday, May 27th, 2008 at 6:07 pm and is filed under Pay Per Click. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.