PPC Glossary for E-commerce

A/B Testing

Also known as split testing, it's the process of comparing two versions of an ad, landing page, or other marketing asset to see which performs better.

Attribution Model

A set of rules that determines how credit for sales and conversions is assigned to touchpoints in conversion paths.

Conversion Rate (CR)

The percentage of visitors who complete a desired action (like making a purchase) out of the total number of visitors.

Cost Per Acquisition (CPA)

A pricing model where you pay for a specified acquisition, like a sale, click, or form submit (e.g., contact request, newsletter sign up, registration etc.).

Cost Per Click (CPC)

The actual price you pay for each click in your pay-per-click (PPC) marketing campaigns.

Dynamic Search Ads (DSA)

Ads that are generated automatically based on the content of a website. Google crawls the site and matches search terms to relevant pages, creating headlines dynamically.

Quality Score

Google's rating of the quality and relevance of both your keywords and PPC ads. 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.

Remarketing / Retargeting

A strategy that allows you to show ads to users who have previously visited your website as they browse the web.

Return on Ad Spend (ROAS)

A marketing metric that measures the efficacy of a digital advertising campaign. ROAS helps online businesses evaluate which methods are working and how they can improve future advertising efforts.