Hello Friends,

To day I will write in absolutely different and in practical way. Today I'll write about PPC and PPM.

First of all what is PPC and PPM, I would like to describe. PPC is stand for Pay per click and PPM is stand for Pay per M. M is stands for “Impression”. In PPC you will have to pay for every click and in PPM you pay for getting 1000 impressions. It means your ad will be appear 1000 times on the net. In PPC you calculate CPC i.e. Cost Per Click and in PPM you calculate CTR i.e. Click Through Rate.

Formula for calculating CPC is as follows-:

(Total Spent money on PPC / Number of clicks) * Number of conversion Suppose you spent 1000/- INR for 20 clicks. You got 5 goals or leads(Conversion). So, for this matrix you will calculate CPC-: 1000 / 20 = 50 * 5 goals= 250 CPC. Your one click rate will be estimated by 250/- INR. Because in actually you are getting only five goal conversion after spending 1000/- INR.


Formula for calculating CTR is as follow-:

Number of Conversion * 100 / Impression (M)

Suppose you spent 1000/- INR for 1000 clicks. You got 30 goals or leads (Conversion). So, for this matrix you will calculate CTR-: 30 * 100 = 3000 / 1000 = 3%.

Best CPC and CTR are vary subject to subject. In Adword for Finance and loan area, you can get upto 20% CTR and up to 60 % accurate CPC.

While starting any Adword campaign you should make KPI matrix to keep vigil on every process and activity.

For any further information you can mail me at nitinbatra.2008 (at) gmail.com. Please mention your brief question while mailing me. It will help me to identify, whether your mail is clean or Spam. My Last blogs can be read at : Online Shopping Blog