Friday 11 May 2007

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Terms You Need to Know If You Want To Make Money Online

Pay Per Click (PPC): Fix cost per click. Advertiser sets a price for each unique click on a the publisher network. Publisher gets paid per click, after deduction made by the ad network. For example, an advertiser pays $0.8 per click to adwords. But adsense publisher (adsense) receives money after deduction is made by the ad network.
Bid: The maximum amount that an advertiser is willing to pay for a click.
Budget: Daily, weekly or monthly spending for an advertising campaign.
Clickthrough Rate (CTR): It is reflection of clicks on a link per page views. Lets say there is 100 page views, but 4 clicks on the links. So CTR will be 0.04.
Conversion Rate: Percentage of the clicks resulted on sale.
Cost Per Click (CPC): The cost or cost-equivalent paid per click-through to an advertiser's website.
Cost Per Thousand (CPM): The money paid per 1000 page views.
Advertising Campaign: Configuration of an advertisement with all its parameters. Ad link, link text, CPC, duration, keywords, countries...
Banning: Going against Terms and Conditions of ad network.
Geo-Targetting: Targeting specific location in the world. This can be country or a city. It is determined by IP address of the visitor.
Impressions: It shows number of times ads are displayed on a site.
Keywords: Words or phrases that are set for an ad campaign. Your ads are displayed, when those words or phrases are used in the search.
Landing Page: Page that is displayed after the ad is clicked in search search results. This page is mostly used to make your sales or referrals.
Linking Text: The title of your ad link.
Rank: Performance of a site or an ad campaign in the search results.
Return On Investment (ROI): Return of investment. Lets say, you spend $200 on advertising and made $400 on sales and referrals. Your ROI is $200.
Paid To Read (PTR): Getting paid for reading mails or visiting ads. Most PPC and affiliate networks don't allow PTR to promote page.