Facebook Advertising Terms Every Business Should Know
Facebook has made advertising easier and more accessible than ever. Businesses of all sizes can now showcase their brands to exactly the audiences they choose, and within their own defined budgets. But while businesses are flocking to Facebook at record speeds to take advantage of all sorts of new marketing opportunities, there is still a learning curve to understanding Facebook advertising terms, as well as how best to measure your results.
So before you jump headfirst into your advertising campaign, you’ll want to make sure you’re familiar with – and have a solid understanding of – some of the most prominent Facebook advertising terms.
Below is an abbreviated list of notable Facebook advertising terms:
- Actions: The total number of actions people took that are attributed to your ads. Actions may include engagement, clicks or conversions.
- Cost per Result: The average cost per result from your ads. The metric is calculated as the total amount spent, divided by the number of results.
- CPM (Cost per 1,000 Impressions): The average cost to reach 1,000 impressions. CPM is a common metric used by the online advertising industry to gauge the cost-effectiveness of an ad campaign.
- Frequency: The average number of times each person saw your ad. Frequency helps to build awareness and recall by showing your message to people in your target audience multiple times.
- Impressions: An impression is counted as the number of times an instance of an ad is on screen for the first time.
- Link Clicks: The number of clicks on ad links to select destinations or experiences, on or off Facebook-owned properties.
- Negative Feedback: A score based on the number of times people hid your ad or chose not to see ads from you. Your ad’s negative feedback level can be low, medium or high.
- Post Engagement: The total number of actions that people take involving your ads. Post engagement indicates that your ads are relevant to your target audience, which helps your ads perform better.
- People Taking Action: The number of people who took an action that was attributed to your ads. This metric shows the number of people who engaged with your business after seeing or engaging with your ads.
- Reach: The number of people who saw your ads at least once. Reach is different from impressions, which may include multiple views of your ads by the same people. Reach gives you a measure of how many people were exposed to your message during an ad campaign.
- Relevance Score: A rating from 1 to 10 that estimates how well your target audience is responding to your ad. This score is shown after your ad receives more than 500 impressions.
While this list only encompasses part of what you need to know, familiarizing yourself with these Facebook advertising terms is a great first step toward setting a successful digital advertising campaign in motion. Understanding these Facebook advertising terms allows you to set realistic goals and determine your business’s KPIs.
For additional help understanding these Facebook advertising terms, contact Paradigm Marketing & Design to schedule a consultation.