Words to Know for Creating Facebook Advertisements

Part of the Facebook Advertising For Dummies Cheat Sheet

Facebook Advertising has its own set of terms and language, some of which may seem familiar to you but could carry another meaning. Here are the most commonly used — and most helpful — terms in Facebook Advertising.

Actions: The number of users who engage with your Facebook Page (by Liking your Page) or your Event (by RSVP-ing Yes to your event) by clicking that action within your ad. Actions don't include clicks on the ad title or the ad message.

Average CPC (cost per click): The average amount of money you spend every time someone clicks your Facebook Ad. This is calculated by dividing the total number of clicks by the total amount spent on that ad so far.

Average CPM (cost per thousand): The average amount of money you spend for every 1,000 impressions of your Facebook Ad. This is calculated by dividing the total multiple of thousands of impressions by the total amount spent on that ad so far.

Call to action: An offer or specific action within an ad or a Web page designed so that the viewer will respond positively to that action.

Campaign: A grouping of ads that you create using your Facebook Ads account. When multiple ads are within one campaign, those ads have the same daily budget and schedule but can retain separate bid amounts and targeting filters. Campaigns allow you to group your advertisements based on your criteria.

Conversion: A state in which the viewer accepts the call to action within the ad, whether it was Liking a Page, buying a product, joining a mailing list, or downloading a trial offer.

CPC: A Facebook Ad payment model in which the advertiser is charged only for each click that ad receives from a viewer. Each separate ad can have its own CPC, depending on the ad message and targets.

CPM: A Facebook Ad payment model in which the advertiser is charged only for each time its ad receives 1,000 impressions on Facebook. Each ad can have its own CPM, depending on the ad message and targets. M refers to the roman numeral that represents 1,000.

CTR (click-through rate): An important ratio calculated by the total number of clicks ad received divided by the number of impressions an ad receives. Facebook places a greater importance on ads with a higher CTR.

Impression: The display of a Facebook Ad on any of its Web pages.

Landing page: The Web page that the viewer sees after clicking a Facebook Ad. This could be a Facebook business Page or your external Web site. The page should be designed to match the offer and look of your ad.

Likes and Interests targeting: Targeting filters that allow you to restrict any of your ad's target audience based on information each user put in a Facebook Profile or in specific Pages, Groups, or content connected with a user's Facebook Profile. These filters don't apply to users searching on those terms.

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Facebook Advertising For Dummies Cheat Sheet

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