There are several terms that are related to search engine marketing very closely. For someone who is not very close to the world of Internet marketing, these terms might seem like a riddle. Here, we will discuss 5 such terms:

CPM stands for Cost Per Mille. In Latin mille means thousand, therefore CPM is the amount charged by the website owner for every 1000 views of an Internet advertisement on his/her website. CPM is a way to monetize a high traffic site through displaying ads or banners on it. The CPM is decided as part of the agreement between the website owner and the advertiser.

PPC stands for Pay Per Click. It is an advertising technique, which is used on websites, advertising networks, as well as search engines. Here, the advertiser pays a pre-agreed amount to the website owner for every click that leads a visitor from website owner’s website to the advertiser’s website. Such ads are called “sponsored links” or “sponsored ads” or just “advertisement”.

PPL is the acronym for Pay Per Lead. It is a system where the receiving sites pay certain amount to the referring sites for every new lead. Lead refers to a potential customer’s contact details. There are companies, which don’t sell online but instead use their sites to generate leads, which are then followed up on in a quest to convert them to sales.

PPS stands for Pay Per Sale, which is an online advertising payment model wherein payment is based solely on qualifying sales. Here, advertisers only pay for sales generated through visitors that come to advertiser’s website through another website (the website that hosts the advertiser’s advertisement). Note that this is different from PPC in the sense that in PPC the advertiser has to pay irrespective of whether a sale happens or not. In PPC, the criterion is ‘Click’ whereas in PPS it is ‘Sale’.

CTR or Click Through Rate is the average number of click-throughs per hundred ad impressions, expressed as a percentage. It measures the percentage of people clicking on a displayed ad in order to arrive at the destination site. Note that an impression refers to a single instance of an online advertisement being displayed.

Stumble it!