Know your Boost from your CPA? Facebook Page insights from ad account insights?
No? NO! Oh my. Time to set that record straight.
Set the record straight because to make cake (Profits) you need to understand the language of advertising.
Every discipline in the world has its own language. Advertising is no exception. Knowing the language puts you on the inside looking out. On the inside is where the good stuff happens.
Ready to decode the jargon to make cake? Good? Good!
Here is the 39 most important terms to supercharge your next Facebook Advertising Campaign and make cake.
Top line Facebook Ad Terms
These are top line ad terms you see again and again in the Ads Manager
or Power Editor. (Power editor is depreciated as of fall 2018)
Impressions / CPM
An impression is one instance of one ad seen by a person. CPM is the media industry measurement of ad views.
CPM, stands for, Cost per mille. And is reported in money terms. E.g. “a CPM of €3.59” means Facebook charged you €3.59 for one ad viewed 1000 times.
Think of impressions as Facebook’s Recommended Purchase Price. The RPP changes based on supply and demand.
The number of unique people who saw your ad. Reach is reported in numerical form 10,358 or 1123.
The total money spend on a campaign, e.g. €15.23.
Boost button is the blue button on your Facebook page enticing you too quickly and easily spend money. Avoid using the blue boost button. This post discuss the whens and the whys of the Boost button.
Relevancy score is a measure of how relevant an ad is to a particular audience. The score is measured on a scale of 0-10. The score is displayed after 500 impressions are reached. Then the number updates in real time.
Relevancy score is the ‘check engine’ light of Facebook ads. A cars check engine light is a general warning something is amiss. No different for Facebook ads.
Suggest stop all ads with a score of less than 8. High scores, >= 8, equate to lower CPM rates, higher CTR, lower CPC and (ultimately) more ad delivery.
Further, the relevancy scores drops over time (audience size dependent) as people get ad burn out.
CPC is Cost per click. CPC is the amount you are charged each time someone interacts with your ad. Your total charges are based on the amount you spent on the ad divided by all clicks the ad received.
Measure of how often one person see your ad. Frequency is one ad impression divided by reach – displayed as an average, e.g. 2.1, 3.6 etc. Yes, people in a target audience see your ad more than once.
Relevancy score is correlated with frequency. As frequency goes up relevancy goes down.
The Facebook pixel is critical to your business. Why? To retarget website visitors who left before taking the action you desired.
E.g. a person visits your website to look at your service or a blog post. You then advertise, and reengage, that person with a ‘hey I noticed you visited page X, anything I can help you with’ (not worded exactly like that, because it would freak people out, but, you get the idea).
A funnel is a process. A process, normally a series of steps, a journey, people travel from unaware to aware to ready to purchase.
Lead Generation Campaign
A campaign designed to acquire leads.
The amount of money spend on a campaign.
Stand for cost per lead. The amount of money spent to get a lead.
Click through rate – a measure of the number of people who clicked on your ad.
Power Editor (depreciated as of fall 2018) The power editor is the tool used to manage your ads in bulk. Yes, power editor is the main tool advanced advertises use. New features are given to the power editor first, then some of those are rolled out to the ads manager.
Ads manager is the main tool most beginner and intermediate Facebook advertisers use.
As of fall of 2018 the ads manager is the main ads interface tool available to all.
A Lookalike Audience is a clone of a base or seed audience.
E.g. starting with an email list of 100 customers Facebook will find ‘identical’ people to your 100 and match them with 1% (or 2, 3, 4…10) closest match to your seed audience.
Second Tier Definitions
Facebook advertising is an based on an auction. Yep, you are competing in an auction with other advertisers to put your ad in front of the same audience.
For each ad impression, the Facebook ads platform selects the best ad to run.
The winner is not always the highest bidder. A winning bid is based on the ads’ maximum bids, ad performance, your ads account history and a number of other factors.
All ads on Facebook compete against each other in this process, and the platform determines which ad is most likely to be successful and will choose that ad.
The ad set controls Budgeting. Scheduling, Audience, Placement, and Optimization & Delivery of ads.
The individual ad includes the creative (ex: the image, video and text it uses).
A group of people who you choose to see your ads.
Bid is the amount of money you choose to pay to get your ad seen by your audience. Choose automatic or manual bidding depending on how you want to pay for your ad. See ‘Ad Auction’ above.
Set and modified the bid in the Ad Set.
The maximum amount you’re willing to spend on each campaign. Either daily or lifetime.
Campaign is the top level Facebook ads platform. The structure follows: Campaigns > Ad Sets > Ads.
Ad sets and Ads exist within one campaign.
At the campaign level, you control a campaign’s objective, such as page likes, video views or app installs, website conversions and 12 odd other objectives.
Cost per 10-Second Video View
The average cost per 10-second video view, calculated as the amount spent divided by the number of 10-second video views.
Cost Per Action
This is the average amount you pay for each action people take on your ad.
The amount you pay depends on who you’re targeting and how many other advertisers are competing to show their ad to the same audience. Well-designed ads encourage more people to take an action, and the more actions you get for your budget, the lower your cost per action will be.
Cost per Lead (Conversion)
CPL – The average cost for each lead you get. Either actions on your website or lead form completed.
Cost per Offer Claim
The average cost for each offer claim as a result of your ad.
Cost per Page Engagement
The average cost per action related to the Page and your Page’s posts as a result of your ad.
Cost per Page Like
The average cost for each Page like as a result of your ad.
Cost per click for all clicks on your ad. The amount you’re charged each time someone interacts with your ad. Your total charges are based on the amount you spent on the ad divided by all clicks the ad received
Cost per click to link. The amount you are charged each time someone clicks on the link in your ad that directs people off Facebook. Your total charges are based on the amount you spent on the ad divided by the clicks to link the ad received.
CPM (Cost per 1,000 Impressions)
The average cost you’ve paid to have 1,000 impressions on your ad.
CTR is the click-through rate for all clicks.
Defined as the total number of clicks you received (ex: offsite clicks, likes, event responses) divided by the number of impressions.
The device on which the conversion event you’re tracking occurred. For example, “Desktop” if someone converted on a desktop computer.
Frequency is the average number of times your ad was shown to each person.
You may see this number both at the ad and ad set level.
An impression is an instance of your ad entering the screen for the first time. Multiple impressions refer to the number of times your ad entered the screen for the first time.
Lead generation is the building up of interest in a business’s products or services. To do this, businesses often create campaigns that encourage consumers to fill out a form with their contact information.
A lifetime budget lets you set an amount to spend over the lifetime of an ad set. Our system will automatically try to evenly spread the amount you spend across the period of time that you’ve select
The number of clicks on links appearing on your ad or Page that direct people off Facebook as a result of your ad. (Ex: clicks to install an app, view an offsite video, clicks to another website, call-to-action button clicks to another website, etc.)
The objective you selected for your ad. The objective reflects what you want to achieve with ads.
The number of claims on your offers as a result of your ad.
Optimized CPM is a bid type that shows your ad to people who are more likely take the action you want. With this bid type, you pay for impressions (CPM).
For example, if your advertising objective is get more Page likes, an optimized CPM bid will be shown to people who are more likely to like your Page. Your bid will automatically adjust to help your ads reach the people you care about, but you won’t spend more than your budget. You can also manually set your own bid for optimized CPM but keep in mind this will be a target bid and not a maximum one. Our system may spend more than your target bid as it tries to find the people most likely to take your desired action.
Optimizing for Clicks
An optimization and pricing option available in Power Editor and Ads API for mobile app engagement ads. It optimizes your ad for people most likely click while charging you for impressions.
The number of likes on your Page as a result of your ad.
People Taking Action
The number of unique people who took an action such as liking your Page or installing your app as a result of your ad. For example, if the same person likes and comments on a post, they will be counted as 1 unique person.
Potential reach is the number of monthly active people on Facebook that match the audience you defined through your audience targeting selections.
This is the average amount you’re paying per click (CPC), video view, or 1,000 impressions (CPM).
The number of unique users your ads reached – displayed in numerical form. 3586 or 1123.
Impressions are how often the ad was shown, independent upon who saw it.
Reports are the documentation of your most important ad metrics that can show you how you’re reaching your business goals. You can access reports in Ads Manager and learn more about how to use them in our Get Started Guide to Reports in Ads Manager.
Targeted audience is the number of people your targeting can reach. You’ll see an estimate of this, like the estimate you see while creating an ad.
Use the Audience graph to see the difference between how many people you’re actually reaching and how many people you could be reaching. Increase your bids and budget to reach more of your targeted audience.
When selected the website conversion objective tell Facebook to find people in the audience most likely to convert.
Website Conversion Value
The total value returned from conversions on your website as result of your ad.
Did I leave any out?