Pay-Per-Click (PPC) Metrics with definitions

Within the Adwords interface and in Google Analytics there are reports that show data for a PPC Campaign.  The common header items for Adwords reports in Google Analytics are listed below with a definition of each.
  1. Visits - This is a visit to your site.  A person may view just one or many pages when they visit. 
  2. Impressions - This is how many times your ad is displayed for a given keyword in the given time period.
  3. Clicks - This is how many times an ad was click.  In general, this corresponds with Visits, but they may not always match.  For instance, if your ad is displayed but you also show up in the organic listings and someone clicks that link, this will result in a visit without a click.  In another case, a searcher may already be on your website and perform another search in a separate tab or window.  If they click an ad there, it will result in a click, but not an additional visit.
  4. Cost - This is the cost of a particular keyword or ad group for the given time.
  5. CTR - Click Through Rate - this metric is computed by taking the number of clicks and dividing by the number of impressions. About 1.75% is the average among all industries, but this will depend on the uniqueness of your keyword.
  6. CPC - Cost Per Click - This is the average cost per click for a keyword or an ad group.  It is calculated by taking the Total Cost and dividing the number of clicks.
  7. RPC - Revenue Per Click - this is based on an established Revenue value to a conversion.  If no revenue value is assigned, then the RPC will be $0.00.
  8. ROI - Return on Investment - This is computed by dividing RPC by Cost, and will result in -100% if there is no Revenue values assigned.
  9. Margin - This is the margin you have earned based on the Cost and the Revenue.  If the Revenue is 0, the Margin will be 0.00%. 
A summary of these metrics with averages should be visible at the top of the reports which will also compare these metrics to the site totals.