35 Facebook Ad Terms To Champion Facebook Marketing in 2020
Facebook is one of the biggest and fastest-growing social media platforms, and Facebook Advertising is one of the most effective methods to stay in touch with your target audience. Facebook advertising offers a lot of micro-targeting features that reach reaches out to the audiencemost likely to respond to your products or services. If you have the right strategy in place, Facebook advertising can do wonders for your business.
But before you begin, you must know the terminologies to comprehend everything. This is where it gets a bit complicated as there are many advertising and marketing concepts that you should understand campaigns to run effectively . There are many blogs, white papers, ebooks, and other tutorials available that can teach you how to run a successful Facebook ad campaign, but they are filled with jargon and acronyms.
Here is the list of 35 Facebook Advertising Terms that you must know to get the best out of Facebook Advertising:
Add To Cart (ATC) – The number of add-to-cart events attributed to your ads that are tracked by the Facebook Pixel.
Average Order Value (AOV) – It is a metric that measures the average value of each order or sale made on your website. It can be calculated by dividing the total revenue by the number of orders. To be on the right track with your advertising and pricing strategy, it is important to keep a close eye on this metric.
Bottom of Funnel (BOFU) – It is considered as the last stage of the sales process. If a customer is at the bottom of the funnel, that means he is interested in buying your product/service but might need some questions to be answered before making the final decision.
Campaign Budget Optimization (CBO) – This feature is designed for you to get the best possible results from the available budget. When you select this option, Facebook automatically optimizes your campaign’s budget and distribute it across all the ad sets in your campaign.
Click-Through Rate (CTR) – This metric provides information on the percentage of people who saw your ad and clicked on it. It is calculated by dividing the total number of clicks by the total number of impressions. It is an important metric to determine the effectiveness of your ad and its ability to drive traffic to the landing page.
Conversion rate (CVR) – This metric gives you the percentage of people who clicked on your ad and converted to a sale. This is calculated by dividing the total number of conversions by the total number of clicks.
Conversion rate optimization (CRO) – This is a process of optimizing your ads to encourage users to take desired actions that leads to more conversions.
Cost Per Click (CPC) – It is the average cost of a single click on your Facebook ad. This metric is commonly used to determine the efficiency of an ad campaign.
Cost Per Engagement (CPE) – It is the average cost per user engagement on your ad. It is derived by dividing the total ad spend by the total number of engagements.
Cost Per Thousand Impressions (CPM) – It is the average cost of displaying your ad to a thousand people. Like CPC, CPM is also used to determine the effectiveness of your ad campaign.
Cost per action (CPA) – It is the average cost of a visitor acting on your Facebook ad. This is calculated by dividing the total ad spent by the total number of actions taken.
Cost per purchase (CPP) – It is the average cost of a visitor purchasing your ad. It is calculated by dividing the total ad spent by the total number of purchases made.
Cross-Sell (XS) – It is a sales technique where the customers are encouraged to purchase a product that is similar to the product they have purchased in the past or added to their shopping carts. You can run cross-sell campaigns through Facebook’s dynamic ads.
Custom Audience (CA) – By uploading the list of your customers to Facebook, you can create a custom audience for Facebook advertising using customer’s data such as email addresses and phone numbers.
Customer Lifetime Value (CLTV / LTV) – This metric gives a prediction on the total profit that can be gained from a customer in a lifetime. CLTV plays a crucial role in determining the amount of spend to acquire a customer.
Down-sell (DS) – It is a sales technique where customers are offered a cheaper product than what they initially intended to purchase. The focus of this technique is to acquire a customer for less profit and cross-sell or up-sell to them later.
Dynamic Product Ads (DPA) – Once you upload your product catalog on Facebook, through dynamic ads, these products will be promoted/displayed to the customers who have previously visited your website or app.
Frequency – It is a metric that shows the average number of times a user has seen your ad.
Initiate Checkout (IC) – The number of initiate checkout events attributed to your ads that are tracked by the Facebook Pixel.
Landing Page (LP) – This is a dedicated page on your website or app where users are redirected once they click on your ad.
Landing Page Views (LPV) – These are the number of views your landing page got when people clicked on your ad.
Lookalike Audience (LAL / LAA / LLA) – Lookalike audience is a set of audience you create based on the custom audience group you have. These people will have similar interests as your custom audience group.
Middle of Funnel (MOFU) – This is the middle stage of the sales process. Here the product is presented to the customers as a solution to their problem.
One-click upsell (OCU) – It is a type of up-selling where the customer has the choice to purchase more things with a single click. Mostly these products are an accessory or an attachment for the main product.
One-time offer (OTO) – It is also a type of up-selling where the customer is provided with an option to purchase more products with a discount but for a limited time.
Page Post Engagement (PPE) – When this campaign objective is selected, Facebook tries to find users in your audience that are more likely to engage with your posts.
Retargeting (RT) – This is a method of advertising where the users who have previously shown interest in your products/service/content will be shown your ads. For retargeting, you need to place Facebook Pixel on your website.
Return on Investment (ROI) – It is the overall return you generate after spending your time, money, and other resources into Facebook ad campaigns.
Return on ad spends (ROAS) – One of the most important metrics that determine the performance of an ad campaign. This can be calculated by dividing the total revenue generated by the ad campaign by the total amount of money spent on the campaign.
Relevance Score – Just like Google’s quality score, Facebook’s relevancy score is a rating between 1 to 10 that determines how well you target audience is responding to your ad.
Top of Funnel (TOFU) – This is the first stage of the sales process. Here the customer is educated on the problems they are facing.
Up-sell (US) – It is a sales technique where the customers are encouraged to purchase a product that is more expensive than the product they have purchased in the past or added to their shopping carts. You can run up-sell campaigns through Facebook dynamic ads.
Video Views (VV) – This metric indicates the number of times your Facebook Video Ad was viewed for three seconds or more.
View Content (VC) – It is a campaign optimization option from Facebook that aims to maximize the amount of traffic that can be received through your Facebook ad.
Website Conversion (WC) – It is a campaign objective that works only when you have Facebook Pixel installed on your website. Once it is selected, Facebook tries to find people in your audience that are most likely to convert.
Whether you are just starting up with Facebook Advertising or have been running ads for a while, remembering these terms can be tricky at times. However, knowing these terms can help you plan your Facebook Advertising campaigns better and have a clear understanding of the campaign reports that are sent by the Facebook advertising company.
The next step is to hire a digital marketing agency that can run Facebook Advertisements for your business or if you are planning to take it up yourself, hop on to Facebook Ads guide to begin your journey.