Basic Advertising Terminology

There are many terms and acronyms specific to marketing and online advertising. You'll need to know many of these terms when you start advertising on Facebook.

Let's go over some of the most important ones to know. Clicks are the total number of click actions on your ad. Now depending on what you're promoting, this can include page likes, event responses, or app installs. CTR, or Click-Through Rate, refers to the number of clicks you receive divided by the number of times an ad was shown on Facebook. The higher this number, the better your ad is performing. Next we have CPM, or Cost per 1,000 Impressions. This is the average cost you've paid to have 1,000 impressions of your ad. An impression is anytime the advertisement is shown on the screen. Keep in mind an impression doesn't guarantee that the user saw it, just that it appeared on their page or their newsfeed. This is Cost per Click, or CPC. For these ads, they're calculated as the amount spent divided by the number of clicks received. Even if you're paying for ads on a CPM basis, you'll also see this number calculated, and typically you're aiming for the lowest CPC that still returns the results you desire. Next, frequency, you'll see this number often and in more advanced advertising. You'll be able to set a limit on this as well. It refers to the average number of times each person receives an impression of your ad. Advertisers often try to cap this at a certain rate to prevent what's known as ad fatigue. This is people seeing your ad over and over again. And the last term you'll often see is reach. This refers to the number of unique people that saw your ad. For example, if 100 different people saw your ad, your reach would equal 100. You could have a reach of 100 with an average frequency of seven, and that would indicate 100 unique people each saw your ad seven times, which means 700 impressions. The terms that we went over will help you create powerful advertising campaigns and help you determine which ads are performing well and which ones need some refining. For a full list of terms and definitions used by Facebook, check out the glossary terms used on Facebook.

Click here. Head over to this link and peruse some of the definitions that you aren't familiar with.

FACEBOOK ADVERTISING