Click-Through Rate (CTR)

Click-through rate (CTR) is a metric that measures the number of clicks

advertisers receive on their ads per their number of impressions. Number is the
percentage of people who view your ad (impressions) and then actually go on to
click the ad (clicks). The formula for CTR looks like this:
(Total Clicks on Ad) / (Total Impressions) = Click Through Rate
Why Do Click-Through Rates Matter?

A high CTR is a good indication that users find your ads helpful and
relevant.
CTR is the number of clicks that your ad receives divided by the number of
times your ad is shown expressed as a percentage (clicks impressions =
CTR).
For example, if you had 5 clicks and 1000 impressions, then your CTR would
be 0.5%. Here's how it's calculated:

Click-through rate effects Quality Score .

(Quality Score is Google's rating of the quality and relevance of both your
keywords and PPC ads (PAY PER CLICK). It is used to determine your cost per
click (CPC) and multiplied by your maximum bid to determine your ad rank in the
ad auction process.)

Gives a base of visitors who will potentially convert

Impacts QS > which impacts CPC > impacts ROI
Helps gauge success relative to competitors and between campaigns
Aids in evaluating ad copy, specifically the call to action
Why its not important:
Doesnt necessarily mean a conversion
Does not tell you the quality of your visitor
Can include malicious or bad clicks
Impressions are not necessarily acknowledged by users, meaning these
values are a bit arbitrary.
CTR is based off other variables as well, including position, bid, and
competition.

Cost Per Click

(CPC) refers to the actual price you pay for each click in your pay-per-click (PPC)
marketing campaigns.

A "click" on one of your PPC text ads represents a visit, or an interaction with your
company's product or service offering. Every click in a PPC campaign represents
attention from a person who is searching for something that you offer. This
attention is what you're buying, as an advertiser, so it's important to note two
factors:

What type of attention youre going after, and

How much youre paying for it.

The actual formula for cost per click in AdWords is:

Cost-per click is important because it is the number that is going to determine the
financial success of your paid search campaigns. Since the overall ROI of your
campaigns is determined by how much youre paying for clicks and the quality of
traffic theyre bringing in, it is important to think about cost per click in terms of
both cost and value. You want to identify and target clicks that
are both inexpensive and valuable.

Impressions
How often your ad is shown. An impression is counted each time your ad is shown on a
search result page or other site on the Google Network.

Each time your ad appears on Google or the Google Network, it's counted as one
impression.

In some cases, only a section of your ad may be shown. For example, in Google Maps,
we may show only your business name and location or only your business name and
the first line of your ad text.

However, when someone searches using Google Instant, an impression can be

counted when one of these occur:
Person begins to type and then clicks anywhere on the page like a search

result, ad, or related search

Person types a search and then clicks the "Search" button, presses Enter, or

selects a predicted query from the drop-down menu

Person stops typing, and the results are displayed for a minimum of three

seconds

You'll sometimes see the abbreviation "Impr" in your account showing the number of
impressions for your ad.

Google Display Network

A group of more than a million websites, videos, and apps where your ads can appear. Sites
in this network show relevant AdWords ads.

The Display Network (formerly known as the Content Network) is one part of
the Google Network.

Your ads can be automatically matched to websites and other placements like mobile
phone apps, when your keywords are related to the sites' content. You can also choose
to target specific sites, pages about specific topics, demographic groups, and more.

To show your ads on the Display Network, set your ad campaign to "Display Network
only" or "Search Network with Display Select."

The Google Display Network is the #1 global display ad network, reaching over 90% of
internet users worldwide, with more than a trillion impressions served to over 1 billion users
every month. An array of flexible ad formats allow you to engage with potential customers
wherever they may be. And our powerful combination of placement, contextual and
audience targeting helps you find, reach and connect with your audience.
Why youd use it
Easily expand your campaigns across devices, reaching specific audiences all across the
web. Whether you have brand or performance goals or your business is local, regional or
global, the Google Display Network offers the scale and tools you need to help you make the
most of every dollar.
Details

Reach your customers at the right time across all screens - including mobile, tablet,
and desktop

Promote your brand with an array of engaging ad formats

Create demand by getting your message in front of your target audience

Optimize- manually or automatically- with a range of tools for maximum results

Quality Score: Definition

An estimate of the quality of your ads, keywords, and landing page. Higher quality ads can
lead to lower prices and better ad positions.

The components of Quality Score (expected clickthrough rate, ad relevance, and

landing page experience) are determined every time your keyword matches a
customer's search.

You can get a general sense of your ad quality in the "Keyword Analysis" field of your
account (reported on a 1-10 scale). You can find this by selecting the Keywords tab and
clicking on the white speech bubble

next to any keyword's status.

The more relevant your ads and landing pages are to the user, the more likely it is
that you'll see higher 1-10 Quality Scores and benefit from having higher quality
components of your Ad Rank, like a higher position or lower CPC.

Relevance: Definition
How closely the elements of your ad campaign match what a person seems to be looking for.

Your ads and keywords should directly relate to the content on your website,
especially the ad's landing page. When people see your ad, they should be able to
understand what kind of product, service, or other content they'll find on your site.

To encourage you to create relevant ad campaigns that accurately represent your

products or services, the AdWords pricing system is partly based on relevance. A highly
relevant ad, keyword list, and landing page is generally rewarded with a higher position
on the page for potentially less money.

Relevance is part of your Quality Score, a formula that Google uses to measure how
useful your ad, keyword, and website are to a customer. Relevant ads tend to get higher
Quality Scores.

Cost-per-thousand impressions (CPM)

CPM bidding means that you pay based on the number of impressions (times your ads are
shown) that you receive on the Google Display Network.

CPM stands for cost-per-thousand impressions, so you pay for each set of a thousand
views of your ad. You set CPM bids to tell Google how much you're willing to pay for that
set of impressions.

CPM bidding is best suited for advertisers who are focused on brand awareness. For
advertisers whose main goal is sales or website traffic, CPC bidding (pay for each click
on your ad) might be a better option.

You set a maximum CPM (or "max CPM") bid as the highest amount that you're
willing to pay for 1,000 views of your ad.

Cost-per-view (CPV)
A bidding method where you pay each time someone watches 30 seconds of your video or
engages with your video, whichever comes first. You set CPV bids to tell Google the
maximum amount you're willing to pay for each video play.

With CPV bidding, you pay only when a viewer watches 30 seconds of your video or
engages with your video, whichever comes first.

You can select a default maximum CPV bid for all ads in your campaign, or set
individual CPV bids. This means what you'll pay is equal to or below your bid, depending
on other advertisers' bids.

The CPV bidding option is only available when you choose to run TrueView video ads.
You can set the maximum CPV bidding by clicking the Campaigns tab in AdWords,
clicking All video campaigns, clicking the video campaign you want to review, and
then clicking the Targets tab.

What is PPC?
PPC stands for pay-per-click, a model of internet marketing in which advertisers pay a fee
each time one of their ads is clicked. Essentially, its a way of buying visits to your site,
rather than attempting to earn those visits organically.
Search engine advertising is one of the most popular forms of PPC. It allows advertisers to
bid for ad placement in a search engine's sponsored links when someone searches on a
keyword that is related to their business offering. For example, if we bid on the keyword
PPC software, our ad might show up in the very top spot on the Google results page.
Every time our ad is clicked, sending a visitor to our website, we have to pay the search
engine a small fee. When PPC is working correctly, the fee is trivial, because the visit is
worth more than what you pay for it. In other words, if we pay $3 for a click, but the click
results in a $300 sale, then weve made a hefty profit.
A lot goes into building a winning PPC campaign: from researching and selecting the right
keywords, to organizing those keywords into well-organized campaigns and ad groups, to
setting up PPC landing pages that are optimized for conversions. Search engines reward
advertisers who can create relevant, intelligently targeted pay-per-click campaigns by
charging them less for ad clicks. If your ads and landing pages are useful and satisfying to
users, Google charges you less per click, leading to higher profits for your business. So if
you want to start using PPC, its important to learn how to do it right.

Understanding bidding basics

AdWords gives you several ways to bid for your ads, depending on what matters most to you
and your business. Most advertisers focus on clicks, impressions, or conversions.
Now that you're advertising on AdWords, you probably have a clear goal in mind for your
ads. If you sell coffee, maybe you want to get more people to visit your shop. If you run a
hiking club, maybe you're aiming to get more people to sign up for your newsletter. And so
on.
Knowing what you want your ads to do will help you decide how to bid.
Tip
AdWords runs an auction every single time it has an ad space available -- on a search
result, or on a blog, news site, or some other page. Each auction decides which AdWords
ads will show at that moment in that space. Your bid puts you in the auction.
You can focus on three different things when you bid: clicks, impressions, or conversions.
Which would you choose? Let's look at these more closely.

Focus on clicks
If your main goal is to have people visit your website, then clicks are a good place to start.
Use cost-per-click (CPC) bidding and you'll pay only when someone actually clicks on your ad
and comes to your site.
CPC bidding gives you these choices:

Automatic bidding
This is the easiest way to bid. Set a daily budget and let AdWords adjust your CPC bids
to bring you the most clicks possible within that budget.

Manual bidding
Take full control of your CPC bids. Manual bidding lets you set bids at the ad group level,
or for individual keywords or ad placements, so you know you're bidding just what you
want for the clicks that mean the most to you.

Ad extensions
A feature that shows extra business information with your ad, like an address, phone
number, store rating, or more webpage links.

Enhance your ad with extensions

Understand how extensions work

See where extensions can be shown

Choose extensions suited to your business goals

Set up and manage your extensions

See how a business like Main Street Flowers uses sitelinks, call, and location extensions to
enhance its ads. By adding extra pieces of information about the business to their ads,
they're giving customers more reasons to click.
Ad extensions create more reasons to click your ad
Ad extensions are a type of ad format that show extra information (extending from your
text ads) about your business. Some can be added manually and others are automated.
Improved visibility: Ad extensions tend to improve your ads visibility. They often
appear above the search results, rather than along the sidebar. If two competing ads have
the same bid and quality, the ad with greater expected impact from extensions will generally
appear in a higher ad position than the other.

Better return on investment: Extensions can help improve the clickthrough rate
(CTR) of your ads. More clicks means more customer traffic.
How ad extensions work
AdWords shows one or more extensions with your ad when it calculates that the extension
(or combination of extensions) will improve your campaign performance, and when your Ad
Rank is high enough for it to appear. Adding an extension wont guarantee that it will show
with your ad, but you can keep track of when your extensions are appearing on the Ad
extensions tab. Learn why extensions might not show with your ad.
Automated extensions: AdWords creates and displays the automated extensions formats
(seller ratings, consumer ratings, social extensions, and previous visits) when it predicts that
theyll improve your ads performance. No setup is required, so the option to create
automated extensions doesn't appear in the drop-down menu of the Ad extensions tab.
What ad extensions cost
There's no cost to add extensions to your campaign, but you're charged as usual for clicks
on your ad, as well as for certain interactions that extensions provide. For example, you're
charged for clicking on a download button (app extensions), on a call button (call
extensions), on a directions icon (location extensions), and so on. Clicks on review
extensions, social extensions, and seller ratings are an exception: we dont charge you for
these. AdWords charges no more than two clicks (per impression) on each ad and its
extensions.
The cost of these clicks are set in the same way as headline clicks: the most you'll pay is
what's minimally required to keep your extensions and ad position. Learn more about actual
cost-per-click (CPC).
Where extensions can be shown
Ad extensions appear with ads on the Search network, and depending on the extension
might also appear with ads on the Display network. Check the table below to see which
extensions need you to choose the All features subtype. Learn more about how to choose
the right campaign type.

Conversion Rate Optimization (CRO):

Conversion rate optimization (CRO) is the process of optimizing your sponsored
search ads, landing pages, and overall website design to raise your conversion
rate. In other words, the goal is for the highest possible percentage of visitors to
your site to convert, or complete your desired action. CRO is quickly gaining in

popularity because it's seen as a way to increase profits from sales without
raising your advertising spend.

AdSense
A Google product that provides a way for website publishers of all sizes to earn money by
displaying targeted Google ads on their websites.

If the website publisher is approved to show AdWords ads, Google gives them a piece
of code to put on their site. The publisher chooses where to place ads and then earns
money when visitors click on (or view, in some cases) the ads.

Your ads may show on AdSense sites when you run a Display Network campaign.

Landing page - Definition

The webpage where people end up after they click your ad. The URL of this page is usually
the same as your ad's destination or final URL.

For each ad, you specify a destination or final URL to determine the landing page
where people are taken when they click your ad.

Google's policy is that your landing page and display URL (the webpage shown in
your ad) must share the same domain.

Your landing page experience is one of several factors that helps determine a
keyword's Quality Score. The experience of a landing page is represented by such
things as the usefulness and relevance of information provided on the page, ease of
navigation for the user, and how many links are on the page.

What is eMarketing and how is it better than traditional

Marketing?
The terms eMarketing, Internet marketing and online marketing, are frequently interchanged, and can
often be considered synonymous. eMarketing is the process of marketing a brand using the Internet. It
includes both direct response marketing and indirect marketing elements and uses a range of
technologies to help connect businesses to their customers. By such a definition, eMarketing
encompasses all the activities a business conducts via the worldwide web with the aim of attracting
new business, retaining current business and developing its brand identity.

The benefits of eMarketing over traditional marketing:

Reach
The nature of the internet means businesses now have a truly global reach. While traditional media
costs limit this kind of reach to huge multinationals, eMarketing opens up new avenues for smaller
businesses, on a much smaller budget, to access potential consumers from all over the world.
Scope
Internet marketing allows the marketer to reach consumers in a wide range of ways and enables them
to offer a wide range of products and services. eMarketing includes, among other things, information
management, public relations, customer service and sales.
Interactivity
With a two-way communication channel, companies can feed off of the responses of their consumers,
making them more dynamic and adaptive.

Immediacy
Internet marketing is able to, in ways never before imagined, provide an immediate impact. Can easily
transform to actual acquisition. By closing the gap between providing information and eliciting a
consumer reaction, the consumers buying cycle is speeded up and advertising spend can go much
further in creating immediate leads.
Demographics & targeting
Access to niche markets
Adaptivity and closed loop marketing
Closed Loop Marketing requires the constant measurement and analysis of the results of marketing
initiatives. continuously tracking the response and effectiveness of a campaign, dynamic in adapting to
consumers wants and needs. in real-time and campaigns can be tweaked continuously. minimal
advertising spend wasted on less than effective campaigns. Maximum marketing efficiency.

SEO
Search engine optimization (SEO) is the process of affecting the visibility of a website or
a web page in a search engine's unpaid results - often referred to as "natural," "organic," or
"earned" results. In general, the earlier (or higher ranked on the search results page), and
more frequently a site appears in the search results list, the more visitors it will receive from
the search engine's users. SEO may target different kinds of search, including image
search, local search, video search, academic search,[1] news search and industryspecific vertical search engines.
As an Internet marketing strategy, SEO considers how search engines work, what people
search for, the actual search terms or keywords typed into search engines and which search
engines are preferred by their targeted audience. Optimizing a website may involve editing
its content, HTML and associated coding to both increase its relevance to specific keywords
and to remove barriers to the indexing activities of search engines. Promoting a site to
increase the number of backlinks, or inbound links, is another SEO tactic.

SEM
Search engine marketing (SEM) is a form of Internet marketing that involves the promotion
of websites by increasing their visibility in search engine results pages (SERPs) through optimization
and advertising. SEM may use search engine optimization (SEO), which adjusts or rewrites website
content to achieve a higher ranking in search engine results pages, or use pay per click (PPC) listings.

SEO: Earning traffic through unpaid or free listings

SEM: Buying traffic through paid search listings

SEM (Search Engine Marketing) is the process of gaining website traffic by purchasing ads on search
engines.

HASHTAG

FB
Hashtags turn topics and phrases into clickable links in your posts on your personal Timeline or Page.
This helps people find posts about topics theyre interested in. To make a hashtag, write # (the number
sign) along with a topic or phrase and add it to your post. For example:
I just saw the cutest puppy! #dogs

When you click a hashtag, youll see a feed of posts that include that hashtag. You may also see some
related hashtags at the top of the page.
Please keep in mind:

A hashtag must be written as a single word, without any spaces

You can include numbers in a hashtag, but punctuation and special characters (like $ and
%) won't work

You can search for a hashtag using the search bar at the top of any page

You'll only see posts that were shared with you

TWITTER
Definition: The # symbol, called a hashtag, is used to mark keywords or topics in a
Tweet. It was created organically by Twitter users as a way to categorize messages.

Using hashtags to categorize Tweets by

keyword:
o

People use the hashtag symbol # before a relevant keyword or phrase (no spaces) in
their Tweet to categorize those Tweets and help them show more easily in Twitter Search.

Clicking on a hashtagged word in any message shows you all other Tweets marked
with that keyword.

Hashtags can occur anywhere in the Tweet at the beginning, middle, or end.

Hashtagged words that become very popular are often Trending Topics.

Example: In the Tweet below, @eddie included the hashtag #FF. Users created this as
shorthand for "Follow Friday," a weekly tradition where users recommend people that others
should follow on Twitter. You'll see this on Fridays.

Using hashtags correctly:

o

If you Tweet with a hashtag on a public account, anyone who does a search for that
hashtag may find your Tweet

Don't #spam #with #hashtags. Don't over-tag a single Tweet. (Best

practices recommend using no more than 2 hashtags per Tweet.)

Use hashtags only on Tweets relevant to the topic.

Email Marketing
Email marketing is directly marketing a commercial message to a group of people using email. In its
broadest sense, every email sent to a potential or current customer could be considered email
marketing. It usually involves using email to send ads, request business, or solicit sales or
donations, and is meant to build loyalty, trust, or brand awareness. Email marketing can be done to
either sold lists or a current customer database. Broadly, the term is usually used to refer to
sending email messages with the purpose of enhancing the relationship of a merchant with its
current or previous customers, to encourage customer loyalty and repeat business, acquiring new
customers or convincing current customers to purchase something immediately, and
adding advertisements to email messages sent by other companies to their customers.

Social media marketing

Social media marketing is the process of gaining website traffic or attention through social media
sites. Social media marketing programs usually center on efforts to create content that attracts
attention and encourages readers to share it across their social networks. The resulting electronic
word of mouth (eWoM) refers to any statement consumers share via the Internet (e.g., web sites,
social networks, instant messages, news feeds) about an event, product, service, brand or
company.[2] When the underlying message spreads from user to user and presumably resonates
because it appears to come from a trusted, third-party source, as opposed to the brand or company
itself,[3] this form of marketing results in earned media rather than paid media .

Affiliate marketing
Affiliate marketing is the process of earning a commission by promoting other peoples (or
companys) products.
You find a product you like, promote it to others, and earn a piece of the profit for each sale that
you make.

Youre happy because you earned a commission

The company is happy because they have a new sale from a customer that they might not
have normally been able to reach

And the customer is happy because they learned about a product from you that will
hopefully fulfill a need or desire.

The beauty of affiliate marketing is that you dont have to invest the time and effort to create a
product to sell. You can begin selling something as an affiliate as soon as you have a platform to
sell it on.
Affiliate marketing is something Ive been doing ever since I started my first business online on
my LEED Exam website promoting a third party companys practice exam software along with my
own published eBooks and audio guides.
I also do affiliate marketing here on the Smart Passive Income blog, sharing many of the tools and
services that I use to run my online businesses, and if you or anyone else purchases through my
affiliate links I earn a commission. If youve purchased from my links before, thank you so much! I
greatly appreciate your support!

Viral marketing
a marketing strategy that focuses on spreading information andopinions about a product or service fro
m person to person, especiallyby using unconventional means such as the Internet or email.
a direct marketing technique in which a company persuades internetusers to forward its publicity mate
rial in e-mails (usually by includingjokes, games, video clips, etc)

Viral marketing, viral advertising, or marketing buzz are buzzwords referring

to marketing techniques that use pre-existing social networking services and other technologies to try
to produce increases inbrand awareness or to achieve other marketing objectives (such as product
sales) through self-replicating viral processes, analogous to the spread of viruses or computer
viruses (cf. Internet memes andmemetics). It can be delivered by word of mouth or enhanced by the
network effects of the Internet and mobile networks.[1] Viral advertising is personal and, while coming
from an identified sponsor, it does not mean businesses pay for its distribution. [2] Most of the wellknown viral ads circulating online are ads paid by a sponsor company, launched either on their own
platform (company webpage or social media profile) or on social media websites such as YouTube.
[3]
Consumers receive the page link from a social media network or copy the entire ad from a website
and pass it along through e-mail or posting it on a blog, webpage or social media profile. Viral
marketing may take the form of video clips, interactive Flash games, advergames, ebooks, brandable
software, images, text messages, email messages, or web pages. The most commonly utilized
transmission vehicles for viral messages include: pass-along based, incentive based, trendy based, and
undercover based. However, the creative nature of viral marketing enables an "endless amount of
potential forms and vehicles the messages can utilize for transmission", including mobile devices.

Online advertising
Online advertising, also called online marketing or Internet advertising, is a form of marketing and
advertising which uses the Internet to deliver promotionalmarketing messages to consumers. It
includes email marketing, search engine marketing (SEM), social media marketing, many types
of display advertising(including web banner advertising), and mobile advertising. Like other advertising
media, online advertising frequently involves both a publisher, who integrates advertisements into its
online content, and an advertiser, who provides the advertisements to be displayed on the publisher's
content. Other potential participants include advertising agencies who help generate and place the ad
copy, an ad server which technologically delivers the ad and tracks statistics, and advertising
affiliates who do independent promotional work for the advertiser.

Mobile advertising
Mobile advertising is a form of advertising via mobile (wireless) phones or other mobile devices. It is a
subset of mobile marketing.
Mobile marketing is marketing on or with a mobile device, such as a smart phone.[1] Mobile marketing
can provide customers with time and location sensitive, personalized information that promotes goods,
services and ideas.[2] In a more theoretical manner, academic Andreas Kaplan defines mobile
marketing as "any marketing activity conducted through a ubiquitous network to which consumers are
constantly connected using a personal mobile device".

Content marketing
Content marketing is a strategic marketing approach focused on creating and distributing valuable,
relevant, and consistent content to attract and retain a clearly-defined audience and, ultimately, to
drive profitable customer action.
Content marketings purpose is to attract and retain customers by consistently creating and
curating relevant and valuable content with the intention of changing or enhancing
consumer behavior. It is an ongoing process that is best integrated into your overall marketing
strategy, and it focuses on owning media, not renting it.
Basically, content marketing is the art of communicating with your customers and prospects without
selling. It is non-interruption marketing. Instead of pitching your products or services, you are
delivering information that makes your buyer more intelligent. The essence of this content strategy is
the belief that if we, as businesses, deliver consistent, ongoing valuable information to buyers,
they ultimately reward us with their business and loyalty.

QR code in mobile advertising