Digital Marketing Pay-Per-Click (PPC) Advertising Syllabus

Pay-Per-Click (PPC) Advertising syllabus — full chapter and topic list

Expand any chapter to see its topics and sub-topics. This is the whole examinable outline for Pay-Per-Click (PPC) Advertising in Digital Marketing, not a summary of it.

1. 1

   Google Ads

   4 topics

   • Search Ads
   • Display Ads
   • Video Ads
   • Shopping Ads
2. 2

   Bing Ads

   2 topics

   • Search Ads
   • Display Ads
3. 3

   Social Media Ads

   3 topics

   • Facebook Ads
   • Instagram Ads
   • LinkedIn Ads

Pay-Per-Click (PPC) Advertising flashcards for Digital Marketing

19 of 51 cards from the Pay-Per-Click (PPC) Advertising deck — real questions with worked answers.

1. What does the acronym PPC stand for in digital advertising?

   Pay-Per-Click — an advertising model in which advertisers pay a fee each time one of their ads is clicked, effectively buying visits rather than earning them organically.

2. Define a 'Search Ad' in PPC advertising.

   A text-based ad that appears on a search engine results page (SERP) in response to a user's keyword query, targeting users based on their active search intent.

3. What is the formula for Click-Through Rate (CTR)?

   $$CTR = \frac{\text{Clicks}}{\text{Impressions}} \times 100\%$$

4. What is the formula for Cost Per Click (CPC)?

   $$CPC = \frac{\text{Total Cost}}{\text{Total Clicks}}$$

5. What is the formula for Cost Per Mille / Cost Per Thousand Impressions (CPM)?

   $$CPM = \frac{\text{Total Cost}}{\text{Impressions}} \times 1000$$

6. What is the formula for Cost Per Acquisition / Action (CPA)?

   $$CPA = \frac{\text{Total Cost}}{\text{Conversions}}$$

7. What is the formula for Return On Ad Spend (ROAS)?

   $$ROAS = \frac{\text{Revenue from Ads}}{\text{Cost of Ads}}$$

8. How is Conversion Rate (CVR) calculated in PPC?

   $$CVR = \frac{\text{Conversions}}{\text{Clicks}} \times 100\%$$

9. In Google Ads, what is the standard formula for Ad Rank?

   $$\text{Ad Rank} = \text{Max CPC Bid} \times \text{Quality Score}$$ (plus the impact of ad extensions and ad formats).

10. What three main components determine a keyword's Quality Score in Google Ads?

    Expected click-through rate (CTR), ad relevance, and landing page experience.

11. On what scale is Google Ads Quality Score measured?

    A scale from $1$ to $10$, where $10$ is the best; a higher score generally lowers CPC and improves ad position.

12. In a second-price (generalized second-price) auction, how is the actual CPC an advertiser pays determined?

    $$\text{Actual CPC} = \frac{\text{Ad Rank of competitor below}}{\text{Your Quality Score}} + \$0.01$$ You never pay more than your maximum bid and often pay less.

13. What are the three keyword match types available in Google Search Ads?

    Broad match, phrase match, and exact match (each controlling how closely a search query must relate to your keyword to trigger the ad).

14. What is a 'negative keyword' in Search Ads?

    A keyword you add to prevent your ad from showing on searches containing that term, reducing irrelevant clicks and wasted spend.

15. What are Responsive Search Ads (RSA)?

    A Search Ad format where you supply multiple headlines and descriptions, and Google automatically tests and combines them to serve the best-performing permutations for each query.

16. Define a 'Display Ad' in the context of PPC.

    A visual banner ad (image, rich media, or HTML5) shown on websites, apps, and videos across a display network such as the Google Display Network (GDN), typically targeting audiences rather than search intent.

17. What is the key difference in user intent between Search Ads and Display Ads?

    Search Ads capture active/high intent (users actively searching for something), while Display Ads generate demand/awareness by reaching a passive audience as they browse other content.

18. Name three common audience targeting methods used for Display Ads.

    Demographic targeting, contextual/keyword or topic targeting, and audience targeting (affinity, in-market, or remarketing lists).

19. What is 'remarketing' (retargeting) in display advertising?

    Showing ads to users who have previously visited your website or app, using cookies or user lists to re-engage them and encourage a return conversion.

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