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In part 1, I talked about the basics of Facebook Ads and why its such a great platform to advertise on. In Part 2, I’ll be covering every little word you should know before you even start thinking about dropping money on an ad. Many of these words aren’t only important for Facebook advertising, but for any sort of internet marketing whatsoever. A lot of this is basic knowledge that any seasoned affiliate marketer should know, but for those that are thinking about dropping there first ad anywhere on the net, this should be considered a need to read and very important bit of information.

I want to start off by covering terms that you will see on the Facebook Ad Platform itself.

Campaign – A group of individual ads, usually all promoting the same offer/service/product. On other ad platforms, this might be known as an Ad Group.

Ad Status – Whether an ad is running, paused, deleted or disapproved. On Facebook, this can be applied to ads on an individual basis or at a campaign level.

Budget – Your daily allowed spend on each campaign. Does not necessarily mean you will actually reach your budgeted spend.

Impressions – The number of views each ad or ad campaign an ad accumulated. Does not actually imply that a user interacted or saw an ad, but that the ad was put on a page that Facebook served to a user.

Social Percent (%) – A fairly new term and statistic added to the Facebook platform. Basically, it tells the percent of people who saw the ad after it was liked by a friend of theirs.

Clicks – Number of people who interacted with and clicked an ad.

CTR - Click through rate. The percentage of people who clicked the ad after viewing the ad. (1 click after 1000 impressions would be 0.1%) The average CTR rate for most ads on Facebook is around 0.1 – 0.15%.

CPC – Cost Per Click.

CPM – Cost Per Mille (1000 impressions).

Avg. CPC – Average cost per click. This is the total amount spent on each ad/ad campaign divided by the total number of clicks.

Avg. CPM – Average cost per mille. This is the total amount spent on each ad/campaign divided by the total amount of 1000 impressions.

Spent – Total amount spent on each ad/campaign over a set period of time, or the lifetime of the ad/campaign (user-defined).

Bid – The maximum amount you are willing to pay on each ad on a per click or per 1000 impressions basis. Does not necessarily mean you will pay that much.

CPC Bid Type – Choosing to bid on each click you get.

CPM Bid Type – Choosing to bid on every 1000 impressions you get.

Destination URL – The set URL you direct your ad to after a user clicks it.

Geographical Targeting – Targeting that allows you to specify your ads to only be shown to certain geographical regions of the world (country, city, state, etc).

Demographic Targeting – The set of targeting options that allow you to target your ads at users based on who they actually are (Sex, age, relationship status, languages, education, etc)

Psychographic Targeting – Targeting users by what they like (Likes and Interests, Interested In, etc).

Landing Page – A page you direct users that click your ads to. A landing page is usually a pre-selling page that helps convert the user once they hit whatever offer page you are marketing to.

CVR – Conversion rate. The percentage of people that convert on your offer versus the amount that click it. (10 people click your ad and view your offer, 1 person converts = 10% CVR)

Tracking – A common term used by internet marketers that refers to statistical click tracking software. Can allow you to track ad clicks, keywords, rotate ads and has several other important features. See Tracking202.

This list will be updated as I think of new terms that need to be added. If you see any terms you think should be included, comment below.

Facebook Ad Guide

Part 1 – A Basic Introduction to Facebook Ads

Part 2 – Key Terminology To Know

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