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 and make cake (Profits) you need to understand the language of advertising.
Every specialty has their own language. Advertising is no exception. Speaking the right language puts you on the inside looking out. On the inside is where the good stuff happens.
Let’s decode some jargon.
Here is the 39 most important terms to supercharge your next Facebook Advertising Campaign and make cake.
(Post updated July 2019 reflecting the never-ending 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 of ads.
CPM, stands for, Cost per mille. And get stated 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. Yet, RPP changes based supply and demand, audience size, competition, time of year, your account quality score and more.
The number of unique people who saw your ad. Reach is 10,358 or 1123.
The total money spent on a campaign, e.g. €15.23.
CPA – cost per acquisition. The cost to acquire a customer or lead. Displayed as ‘CPA of €9 or a €1 CPA.
CPA is the ‘trim tab‘ in the customer acquisition matrix. CPA 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 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 your ‘check engine light’, then the Facebook’s diagnostics tool refines the ‘problem’ 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 your ads expected conversion rate. Your advert gets compared with other ads using the same objective competing for the same audience.
CPC – Cost per click. CPC is the amount you pay 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.
The pixel lets tracks people and measures their action on your website. 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 products, services, or a blog post. You then advertise, to reengage that person. Use 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 get 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 available to all.
A Lookalike Audience is a clone of a 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 a country.
Second Tier Definitions
Facebook advertising is an auction. Yep, you are competing 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. Because Facebook has standards. A winning bid combines on the ads’ maximum bids, anticipated performance, account history, and a many other factors.
All ads on Facebook compete against each other in this process. The platform determines the 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 most 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.
Campaign determines how each subsequent level functions.
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 depends the target audience and the number of competitors. Well-designed ads encourage people to take action. More actions, the lower your cost per action.
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. It’s the total number of clicks on your advert divided by the number of impressions.
Cost per click to link. The amount charged each time someone clicks on the link in 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.
Lead generation is a process. Process of creating campaigns encouraging people exchange their contact details in exchange for something valuable.
A lifetime budget is an amount for a campaign. Budgets are set at the ad set level. Except for CBO, campaign budget optimization, which is set at the campaign level.
Facebook “…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 an ad directing people off Facebook.
E.g. clicks to install an app, view an offsite video, clicks to a website, call-to-action 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).
Optimized CPM bid will shown your advert to people who are more likely to take the action of your campaign objective. Your bid will automatically adjust to help your ads reach the people you care about.
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 one unique person.
Is a vague and not reliable indicator of your actual reach. Use with extreme caution.
Found at the ad set level, under budget and opitimzation
Access reports in Ads Manager. Modify to run them as needed to view the metrics of your campaign.
Get sales. Website conversion objective is you asking Facebook to find people in the audience most likely to convert on your website. Convert = signup, buy, etc.
Website Conversion Value
The total value returned from conversions on your website as result of your ad.
Did I leave any out?