Facebook Advertising Terms for Beginners To Know and Learn
One of the hardest parts of getting started with advertising on Facebook and Instagram is learning exactly what all of these terms and acronyms mean. What is CTR and how is it different than CPC? Also did you know CMP doesn’t mean “cost per million” but instead cost per “thousand”!? *Facepalm*
Understanding the alphabet soup of social media advertising is half the battle and fortunately it's not as hard as it sounds for you to learn what all of those letters mean.
I’ve put together a short list of common terms to learn when advertising through Facebook Business Manager. Get familiar with these terms and you'll be well on your way to running ads like a boss, or at least sounding like it.
Common Facebook Advertising Terms and Their Meanings:
ATC - Add To Cart
The number times your Facebook pixel has tracked customers adding products to their shopping cart as a result of your ads. This number doesn’t necessarily mean customers completed purchases.
AOV- Average Order Value
A metric that represents the your total revenue divided by the total number of sales. When you are advertising, AOV is an important metric to track and will give you a good idea of your performance.
Attribution Setting
The period of time after an ad is served in which a conversion can be credited to the ad. You can set the attribution window for each of your ads when you create them. By default, “7-day click” is usually selected.
Bid Strategy
This is the way you want Facebook to bid on your ads. It is recommended for most beginners to use “lowest cost” however, other options available include cost cap, bid cap, target cost, highest value or minimum ROAS.
BOF- Bottom Of Funnel
A term that refers to the last stages of a sales/conversion funnel. Here customers are aware of your brand, have been nourished, and are ready for conversion.
Budget
The maximum amount of money you want to spend on your ad campaign. Your budget can be set as a daily spending budget or as an overall budget for your entire campaign.
Clicks
The number of time a user has clicked on your ad. Clicks do not only represent clicks resulting in landing page views but can also represent post engagements such as likes and shares.
CPC - Cost Per Click
The average amount for one click on the ad. It is important to pay attention to the CPC on your ads as it is an important indicator of your ad performance.
CPM - Cost Per 1,000
The average cost of 1,000 impression of your ad being served.
CPR- Cost Per Result
The average cost of reaching your campaign objective goal one time. Common objective goals include landing page views, video playbacks, purchases, and page likes.
CTR- Click Through Rate
A metric that represents the percentage of people who clicked on your ad and is calculated by taking the number of total impressions divided by the number of clicks your ad has received.
CVR- Conversion Rate
This is the percentage of clicks your ad has received that has resulted in a sale. The ad conversion rate is calculated by taking the number of conversions divided by the number of clicks your ad has received.
Frequency
The average number of times your ad has been delivered to the same user.
Get a easy to read reports for your Facebook ads. Work with a Jacker to create custom Dashboards for your campaignsImpressions
The total number of times your ad has been seen. Multiple impressions can be counted for the same user. For instance, if a user sees your ad three times in one day, that would be counted as 3 impressions.
LAA / LLA - Lookalike Audience
An audience that you can build that shares similar characteristics to audiences you created or imported. Lookalike audiences can be built to expand your reach to new untapped customers.
MOF-Middle of Funnel
A term that refers to a section of the sales funnel where customers may be aware of your brand but are still gathering more information and have yet to decide if they are going to make a purchase.
Placements
This refers to where you want your ad delivered. Popular placements usually include feed and story delivery however, other options include in-video, messenger, and search visibility for your ads. Ensure you ads have the right layout and dimensions for the placements you select.
Pixel
A tracking code that you install on your website that allows Facebook to track and report activity related to your ads. The pixel is required in order for most metrics as is key in retargeting and tracking campaign performance.
Reach
The total number of people who have seen your ad. If a user sees your ad more the once its is still reported as a reach of “1”.
Retargeting
Retargeting on Facebook is the act of showing your ads to people who have already interacted with your brand. This could mean visting your website, engaging with a post, or watching your video content.
TOF- Top Of Funnel
A term that refers to a section of the sales funnel where customers are not yet familiar with your brand. When advertising through Facebook, TOF is usually referenced when building cold audiences.
ThruPlays
This is the number of times your video ad was played through to completion, or for 15 seconds, whichever is shorter.
Website Conversions
The number of times a user has completed a purchase after clicking on your ad. The conversion tracking will be based on the attribution window you have set for the ad campaign .
Conclusion
As you can see, it will not be hard for you to get familiar with these terms. You will become more comfortable with the advertising terms as you work on your campaigns and get more uses with Ad Manager. I recommend bookmarking this article for quick reference to look at until you are a facebook advertising pro who doesn’t need notes.
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