Glossary of Basic Marketing Terms
AD RELEVANCE DIAGNOSTICS METRICS
Ad relevance diagnostics replaces the Relevancy score (see below). If the relevancy score is similar to your car’s check engine light, then Facebook’s diagnostics tool refines the engine ‘problem’ further into the fuel system, ignition system or cooling.
Ad Relevance 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 while competing for the same audience.
ADs MANAGER Ads manager is the main tool for Facebook advertisers. The ads manager is the main ads interface tool available to all.
AMOUNT SPENT The total money spent on a campaign.
BOOST The 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 as it is not designed to improve your marketing results.
CPA CPA – cost per acquisition. This is the cost you pay to acquire a customer/lead. And it is a number of key importance. If your CPA is inside of your ad budget target then, your campaign is winning.
CPC (All) CPC – Cost per click. CPC is the amount you are charged each time someone clicks your ad. Your total charges are the amount spent divided by all clicks on the ad.
CPL CPL – Cost per lead; See CPA above.
CPM CPM – Cost per thousand. Amount of ad spend per 1,000 impressions.
CTR Click through rate – a measure of the number of people who clicked on your ad.
FACEBOOK PIXEL
The Facebook Pixel for your Facebook ads
Lets you track and measure action on your website. They could be page views, add to carts, conversions, and more. The pixel optimizes ads for valuable actions and you can create custom audiences for remarketing.
The Facebook pixel is a piece of software (JavaScript) code which places a blank 1×1 pixel-sized image on your website. When someone visits a page of your website this pixel will ping (alert) Facebook and record their visit. This allows you to track performance and calculate the ROI of your campaign.
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.
FREQUENCY Frequency is a measure of how often one person sees 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. The relevancy score is correlated with frequency. As frequency goes up relevancy goes down.
FUNNEL A funnel is a process, it’s a series of steps or a journey people take from unaware to aware to ready to purchase.
LEAD GENERATION CAPTURE CAMPAIGN A campaign designed to acquire leads.
LOOKALIKE AUDIENCE A Lookalike Audience is a clone of a base or seed audience. The 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.
POWER EDITOR The power editor is the tool used to manage your ads in bulk. Yes, the power editor is the main tool advanced advertisers use. New features are given to the power editor first, then some of those are rolled out to the ads manager.
REACH The number of unique people who saw your ad. Reach is displayed numerically as 10,358 or 1,123.
RELEVANCY SCORE 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 car’s check engine light is a general warning that something is wrong and it’s no different for Facebook ads.
It’s suggested to 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 score drops over time (audience size dependent) as people get ad burnout.
SECOND TIER DEFINITIONS
AD AUCTION 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.
AD SET The ad set controls budgeting, scheduling, audience, placement, and optimization & delivery of ads.
ADs The individual ad includes the creative (ex: the image, video, and text it uses).
AUDIENCE (Target) A group of people you choose to show your ads to.
BID 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 modify the bid in the Ad Set.
BUDGET The maximum amount you’re willing to spend on each campaign. Either daily or lifetime.
CAMPAIGN 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 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 CLAIM OFFER The average cost for each offer claim as a result of your ad.
COST PER 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.
CPC (All) 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
CPC (Link) 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 (All) 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.
DEVICE The device on which the conversion event you’re tracking occurred. For example, “Desktop” if someone converted on a desktop computer.
LEAD GENERATION 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.
LIFETIME BUDGET 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 selected.
LINK CLICKS 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.)
OFFER CLAIMS The number of claims on your offers as a result of your ad.
OPTIMIZED CPM Optimized CPM is a bid type that shows your ad to people who are more likely to take the action you want. With this bid type, you pay for impressions (CPM).
For example, if your advertising objective is to 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.
PAGE LIKES 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 Potential reach is the number of monthly active people on Facebook that match the audience you defined through your audience targeting selections.
REPORTS 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.
WEBSITE CONVERSIONS When selected the website conversion objective tells Facebook to find people in the audience most likely to convert.
WEBSITE CONVERSION VALUE The total value returned from conversions on your website as a result of your ad.