Lead: A
click to the site from a Pay Per Click ad. Click Through Rate (CTR):
Number of clicks divided by the number of impressions. CTR is very important to
paid search. A good CLR can get an ad a higher position and lower cost per click. Less general terms, the correct keyword "match type" (Broad, Phrase or Exact) and targeted ad can go along way to improve your CTR. The higher the better as long as you are getting the desired results, conversions. Conversion:
An online Sale or generated lead. 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. ROAS = Profit from online sale/ad spend. Profit =$100.00 and
your ad spend was $50.00 your ROAS = 100.00/50.00=200%. 100% ROAS is breakeven.
Less than 100% the ads are costing money. Always use your "profit margin" to
calculate ROAS. If you use "total revenue" you may look good on paper but that
will not be the true picture. ROAS only measures what the search engine tracks.
True ROAS also takes into consideration, phone orders, the lifetime value of a
customer and the value of branding. CPL:
Cost Per Lead or Cost Per Click Contact us right away for a free SEO/PPC site
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For More Information:
Understanding Search Engine Marketing: Search Engine Marketing Articles
Using video marketing to create trust and get visitors attention: Rush Hour Video Marketing
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