Definition List

PPC Formula

CTR = Total Clicks/Total Impressions
CPA = Total Amount Spent/Total Conversion
CPC = Total Amount Spent/Total Clicks
Actual CPC= Ad Rank of Nearby Copetitor +0.1/ Your KQS
Ad Rank = Max CPC * KQS
CPM = Total bid/CPM(1000)
ROI = (Total Revenue - Total Investment)/Total Investment
Conversion Cost = Total Amount Spent/ No. of Conversion
Conversion Rate = Total Conversion/Total Clicks
Relative CTR = Your CTR / Relative CTR


A
Max CPC = 10, KQS= 10
Ad Rank = Max CPC * KQS
 =100
=50/10=5.01

B
Max CPC = 10, KQS= 5
Ad Rank = 50
=40/5=8.01

C
Max CPC = 10, KQS= 4
Ad Rank= 40
40/4=10.1