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Before going to this topic lets understand first the terminology that will be used in the topic CPC (Cost Per Click) – CPC or cost per click is the amount of money advertiser is willing to spend when a user clicks on his ad. CPM ( Cost Per Thousand Impression) – CPM bidding is the bidding in which the advertisers pay not for click but only when his advertisement is seen. It can be on search engines and also on users websites. CPA (Cost Per Action ) – Cost Per Action is the amount advertiser is willing to spend when a particular conversion is achieved. Whether it is filling form, or selling item, or downloading something. The desired conversion has to be defined by the advertiser when the campaign is created. Unlike CPC , Advertiser don’t pay just for click on his ad but when his conversion is achieved. Landing Pages :- Landing pages are the pages of the website which the user will reach when he will click on the website. Landing pages are important in creating campaign because if your keyword is Pink marble and the landing page is Green Marble than your quality score will depreceate. Quality Score :- Quality Score is calculated by search engine on the basis of the relevancy of website to ad, landing pages and how much useful it is to user after reaching the website. A good quality score can save you lots of bucks while creating campaigns. Ad Score :- Ad Score is calculated by search engine on basis of which the placement and position of ad is defined. The formula will be explained in the remaining topic Click Through Rate :- Click through rate is the amount of the clicks received by the advertiser divided by number of impression it actually had. For example on a certain keyword of Green Marble , if the impression on the search engine were 1000 and total clicks were 500, than CTR would be 0.5
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