Do you 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 specialty has their 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.
Are you 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.
(Post updated July 2019 reflecting the constant changes to the Facebook Ads Platform)
Top line Facebook Ad Terms
Impressions / CPM
An impression is one instance of one ad seen by one person. CPM is the media industry measurement.
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, loosely, as Facebook’s Recommended Purchase Price. However, this RPP changes based on many factors including the base supply and demand curve, audience size, competition, time of year, your account quality score and more.
The number of unique people who saw your ad. Reach is displayed numerically as 10,358 or 1123.
The total money spent on a campaign, e.g. €15.23.
CPA – cost per acquisition. This is the cost you pay to acquire a customer/lead. Usually displayed as ‘CPA of €9 or a €1 CPA.
CPA is the trim tab in the customer acquisition mix. And is the only number of importance. If your CPA is inside of your target than, your campaign is winning.
Boost button is the blue button seen on a Facebook post enticing you too quickly and easily place an advert.
Avoid using the blue boost button. This post discuss the whens and the whys of the Boost button.
Relevancy Score (depreciated March 2019)
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.
Ad Relevance Diagnostics Metrics
Ad relevance diagnostics replaces the Relevancy score (see above). If the relevancy score is akin to a your cars check engine light, then the Facebook’s diagnostics tool refines the engine ‘problem’ further into the fuel system, ignition system or cooling.
“…Similar to relevance score, these ad relevance diagnostics are not factored into an ad’s performance in the auction. We think that this level of granularity will offer reporting that’s more actionable for businesses.”
Ad Relevancy Diagnostic measures three ad dimensions
- Quality Ranking
- Engagement Rate Ranking
- Conversion Rate Ranking
Quality ranking is how your ads perceived quality compares to other ads competing for the same audience.
Engagement rate ranking is how your ads expected engagement compares to other ads competing in the same auction.
Conversion rate ranking is a measure of your ads expected conversion rate compared with ads using the same objective whilst competing for the same audience.
CPC – Cost per click. CPC is the amount you are charged each time someone interacts with your ad. Your total charges are the amount spent divided by all clicks on the ad.
Frequency is a 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 can see your ad more than once.
Relevancy score is correlated with frequency. As frequency goes up relevancy goes down.
lets you track and measure action on your website. Be they page views, add to carts, conversions, and more. The pixel optimize ads for valuable actions and you can create custom audiences for remarketing.
The Facebook pixel is critical to your business. Why? To track ads performance, and 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).
Lead Generation Campaign
A campaign designed to acquire leads.
See CPA above.
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 for Facebook advertisers.
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. Lookalike is part of the Custom Audience group of audiences.
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 in the country you select.
Second Tier Definitions
Facebook advertising is an auction. Yep, you are competing in an auction with other advertisers to put your ad in front of the same audience.
For each auction, the Facebook ads platform selects the best ad to run.
The auction 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 at the top of the pyramid. The structure follows: Campaigns > Ad Sets > Ads.
Ad sets and Ads exist within one campaign.
The campaign level controls the 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.
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.
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 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.
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.
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?