ONLINE ADVERTISING-->CPC,CTR,ROI,Quality Score, Ad Rank

The term online advertising is simply a term that relates to advertising online, or advertising over the Internet. In practice online advertising is about getting your website in front of the people who are interested in your product or service.
The thing to notice here is that you have to pay different every time your ad gets clicked.The key terms here are: High Ad rank, Quality Score, CPC, CTR
Ad Rank=f(CPC, Quality Score)
You dont want to keep bidding more and more but you wold like to increase your Quality Score by CTR i.e. Click Through Rate.
CTR= no of clicks / no of impressions
If your keyword matches what people are searching for and once your ad starts appearing up, your CTR is going to go up and sometimes it is difficult to achieve high CTR in small business. 1-2% is a good CTR. ROI is calculated by how much u spend and how much u gain from ur campaign which is defined by number of conversions and not just the high CTR.
You can calculate your ROI when u r not selling anything..for ex school video when you are a non profit
how much u r saving than how much are u spending.Reason u do this b/c u want to calculate performance management.

A superbowl ad may cost $3.5million for 30 second. In your Pay-per-Click campaign, a quality score is shown for each keyword. Quality Score is used in several different ways, including influencing your keywords’ actual cost-per-clicks (CPCs) and estimating the first page bids that you see in your account.

In your Pay-per-Click campaign, a quality score is shown for each keyword. Quality Score is used in several different ways, including influencing your keywords’ actual cost-per-clicks (CPCs) and estimating the first page bids that you see in your account.