Understanding basic PPC terminology makes it much easier to plan campaigns, set goals, and talk to agencies or freelancers without getting lost in jargon.
This glossary‑style guide explains key PPC terms in plain language and points you to deeper resources when you want more detail.
If you already know the basics of PPC and want to move straight into numbers, you can also read your strategy guide How to Set PPC Goals, Budgets, and KPIs.
Core PPC Concepts
Pay‑Per‑Click (PPC)
PPC (pay‑per‑click) is an online advertising model where you pay a fee each time someone clicks your ad. It covers search ads, display ads, shopping ads, and many social media ads that charge per click.
External resource: WebFX’s PPC Terms: A Complete Glossary for Beginners has a concise definition you can use as a cross‑reference.
Impressions
Impressions are the number of times your ad was shown on a screen, whether or not anyone clicked. High impressions with low clicks usually mean your targeting or ad copy needs work.
Click
A click is counted when a user interacts with your ad by tapping or clicking the ad link. In a PPC model, you are charged for this interaction rather than for the impression.
Click‑Through Rate (CTR)
CTR is the percentage of impressions that turned into clicks. It is calculated as:
text\text{CTR} = \frac{\text{Clicks}}{\text{Impressions}} \times 100
Higher CTR typically indicates that your ad is relevant and compelling to the audience seeing it.
Cost and Bidding Terms
Cost‑Per‑Click (CPC)
CPC is the amount you pay for each click on your ad, on average. It is calculated by dividing total cost by total clicks and is one of the most watched metrics in PPC.
External resource: WebFX, Submerge, and Thryv all provide easy explanations of CPC as a foundational metric.
Cost‑Per‑Mille (CPM)
CPM (also called cost‑per‑thousand impressions) is how much you pay for every 1,000 ad impressions. It is common in display and video campaigns that optimize for reach rather than clicks.
Cost‑Per‑View (CPV)
CPV is the average cost you pay for each view on a video ad, often used in YouTube and other video placements. Platforms count a “view” when someone watches enough of the ad to be considered engaged.
Cost‑Per‑Lead (CPL) and Cost‑Per‑Acquisition (CPA)
- CPL is how much you pay on average to generate one lead (a form fill, signup, or similar contact).
- CPA is how much you pay on average to acquire one paying customer or completed action like a purchase.
Both CPL and CPA are essential when you start connecting PPC performance to business outcomes, and they feature heavily in How to Set PPC Goals, Budgets, and KPIs.
Conversion and Performance Terms
Conversion
A conversion is any action you define as valuable: a purchase, lead, phone call, booking, or app install. You configure conversions in your ad platform and analytics tools so they can be tracked and optimized.
Conversion Rate (CVR)
Conversion rate is the percentage of clicks that turn into conversions. It is calculated as:
text\text{CVR} = \frac{\text{Conversions}}{\text{Clicks}} \times 100
A high CVR means your landing page and offer are aligned with what users expected when they clicked.
Return on Ad Spend (ROAS)
ROAS measures how much revenue you earn for each unit of ad spend. It is calculated as:
text\text{ROAS} = \frac{\text{Revenue from ads}}{\text{Ad spend}}
Ecommerce advertisers often manage campaigns primarily to a ROAS target.
Targeting and Keyword Terms
Keyword
A keyword is a word or phrase you bid on so your ad can show when users search for that term or related queries. In search campaigns, keywords are one of the main ways you control intent.
Match Types (Exact, Phrase, Broad)
Search platforms use match types to determine how closely a user’s query must match your keyword.
- Exact match – Shows when the query has the same meaning or intent; tight control, lower volume.
- Phrase match – Shows queries that contain the meaning of your phrase in context.
- Broad match – Shows a wide range of related queries; more reach, more algorithmic interpretation.
External glossaries from Loganix and Submerge list dozens of keyword‑related options if you want a deeper dive.
Negative Keywords
Negative keywords are search terms you exclude so your ads do not show for those queries. They help you avoid irrelevant traffic, reduce wasted spend, and tighten targeting.
Campaign Structure Terms
Campaign
A campaign is the top‑level container in PPC platforms where you set objectives, budgets, locations, and other high‑level settings. Each campaign can contain multiple ad groups or ad sets.
Ad Group / Ad Set
Ad groups (in Google/Microsoft Ads) or ad sets (in many social platforms) sit inside campaigns and house your targeting (keywords or audiences) plus bids. Grouping closely related terms in the same ad group helps you write more relevant ads.
Ad Copy
Ad copy is the text used in your ads: headlines, descriptions, and sometimes paths or overlays. Strong ad copy improves CTR and Quality Score.
Quality and Rank Terms
Quality Score
Quality Score is a 1–10 score (in Google Ads) that estimates how relevant and useful your ad and landing page are to the user. It includes expected CTR, ad relevance, and landing page experience and can influence your CPC and ad position.
Ad Rank
Ad rank is the value platforms use to decide whether and where your ad appears on the page. It is influenced by your bid, Quality Score, and expected impact of ad extensions and formats.
External glossaries from Essential Marketer and Straight North explain how ad rank, bids, and Quality Score interact in more technical terms.
Tracking and Analytics Terms
Conversion Tracking
Conversion tracking is the process of recording what users do after they click an ad—such as purchases, form submissions, or calls. You implement tags or pixels and configure conversion events so platforms can optimize towards real outcomes.
Pixel / Tag
A pixel (or tag) is a small snippet of code you install on your website that lets ad platforms record user actions and build audiences for remarketing. Without tracking pixels or tags, you cannot reliably measure conversions or run advanced targeting.
Submerge’s ultimate PPC glossary has clear entries on conversion tracking, pixels, and related terms.
Audience and Targeting Terms
Audience
An audience is a group of users defined by attributes such as behavior, interests, demographics, or previous interactions with your site or app. You can build audiences from website traffic, customer lists, or platform data.
Remarketing / Retargeting
Remarketing (or retargeting) is showing ads to people who have already visited your site or interacted with your content. It is often cheaper and converts better than cold traffic because the audience already knows you.
Geotargeting
Geotargeting means focusing your ads on users in specific geographic locations, such as countries, cities, or radius zones. It is especially important for local services and region‑specific offers.
