Familiarizing With FB Ad Terminology

FB Ad Metrics

Impression: Each time your ad is shown on Facebook, that counts as an impression.
Reach: The number of unique people who have seen your ad.
Frequency: The average number of times people have seen your ads. (Impressions divided by reach =>
Frequency)
CPM: Cost per 1000 ad impressions
CTR: Click-Through-Rate. The percentage of people who click on your ad.
CPC: Cost per click on your ads.
Pageviews: Number of pages viewed on your store.
VCs – View Contents. Number of times your product page is viewed.
ATCs – Add to carts. Number of times customer adds a product to his cart.
ICs – Initiate checkouts. Number of times customer starts the checkout process.
PURs – Purchases. Number of orders on your store.
ROAS – Return on ad spend. (Total revenue divided by total ad spend)
CPP – Cost per purchase. The amount you spend on ads per sale. (Total ad spend divided by total number
of sales.)

FB Ad Settings & Important Terminology

FB pixel: Piece of code that sends data from your store back to Facebook for tracking and optimization
purposes.
Interests: FB Targeting option we use to start on new stores. Audiences are created based on people’s likes
and interests.
LLAs – Lookalike Audiences. Facebook creates a large audience of people who look most similar to the
sample audience you provide them.
CBO: Campaign Budget Optimization. You set the budget at the campaign level and the FB algorithm
decides how to allocate it between your ad sets.
ABO: Ad set budgets. You select a budget for each individual ad set.
Traffic: The people who visit your store.
Cold traffic: People who hear about you for the first time.

Retargeting: Advertising to people who have already interacted with your business in some way.
Scaling: Increasing ad spend with the goal of maximizing profits.
Conversion campaigns: A FB ad campaign with the goal of driving conversions on your site.
Automatic placements: Letting Facebook decide where to show your ads.
DCA – Dynamic Create Ads. You give FB multiple content and copy options to choose from. Their algorithm
pairs the options together how it thinks is best.
Thumbnail: The image that shows as the video preview until you click play.
Ad auction: The “bidding” process that the FB algorithm uses to determine ad pricing.
Media buying: The skill of buying ad space on Facebook, Google, etc.
CTA: Call to action. (For example: Telling people to click the link, add to cart, buy, etc.)

Store Metrics & Important Terminology

Landing page: The page you send traffic to from your ads.
Funnel: The path you send customers through. (Example: 1. Ad 2. Product Page 3. Cart 4. Checkout 5.
Order confirmation.)
CVR: Conversion rate. Percentage of total site visitors who buy.
AOV: Average Order Value
CLTV: Customer Lifetime Value. How much a customer spends on your store over his lifetime.
Upselling: Selling existing customers more of the same or a different product.
Cross-selling: Getting customers or prospects to buy additional products.
Perceived value: The amount of tangible and intangible benefits your offer provides to the customer in his
eyes.
Perceived cost: How high your customer perceives the price of your offer.
USP: Unique selling point / unique selling proposition
DMCA takedown: Complaint about copyright infringement.

Other Important Terminology

COAL: Acronym for our 4-step marketing strategy. Creative + Offer + Angle + Logistics.
VSL: Video Sales Letter
AIDA: Attention, Interest, Desire, Action. Old-school marketing formula.

KPIs: Key performance indicators. Q4: 4th quarter of the year. Biggest shopping period because of Black Friday, Christmas, etc.

UGC: User generated content. (Content you receive from customers.)
Market research: The process of figuring out who your potential customers are and what they care about.

Want more leads and calls for your business, reach out to us for your optimized facebooks ads campaign