Why Facebook Ads Are The Best Marketing Tool On The Planet. Before we get into the nitty-gritty of how to create and run successful Facebook Ad campaigns, let’s take a moment to discuss why using facebook marketing can be so beneficial for your business. First, it allows you to reach your target audience in an extremely targeted way. Since people tend to use their social media accounts as a source of information about products they like , your ads will be seen by people who are most likely to buy your product. It also helps you reach out to new customers who may not have heard of you before, which is a great way to build up brand awareness and word-of-mouth marketing.
Facebook Ads can help generate traffic too. Since Facebook users tend to click on ads more than other websites, they’re one of the best ways for generating traffic for an online business. And since people are often reluctant to purchase products from unknown brands, Facebook Ads can help build up your brand’s credibility and trustworthiness in the eyes of potential customers. Finally, when you use Facebook Ads to promote your website, it will be more likely that visitors who come to your site will buy something. This is because they’ll have seen an ad for a product or service on their social media accounts , which means they’ll be more likely to trust the product or service you offer.
This means your ads will reach precisely the type of people you want to sell to. (You’ll learn more about this under the “Creating an Audience” section below.) Ease. The Facebook Ads Manager dashboard might seem overwhelming at first, but once you start creating an ad, the Ads Manager will walk you through the process step-by-step, making it easy to make a Facebook Ad even if you’ve never made one before. Good ROI. Facebook Ads provide one of the highest digital ad ROIs, according to 30% of marketers.
Facebook users also have the tendency to click on ads, with the average Facebook user clicking on 8 ads per month. Measurability. Whether your goal for your Facebook ad campaigns is brand awareness, traffic to your website, or sales, you can easily tell if you’ve reached that goal. You can collect many statistics on your ad’s performance, so you can determine exactly if your ads are worth it, and which ads are performing better than the rest. Given these benefits, it’s no surprise that for most online retail businesses, success with Facebook Ads means the success of their business. This guide will show you exactly what one need to know before getting started with FB ads, Let’s get started.
Here we go!
Okay, things are going to get real nerdy and that’s the perfect way to go about this. So we’re gonna go through 33 key terms that you don’t have to memorise right now. Don’t memorise it but I do want you to export it, print it out, it is a word sheet, because these are very, very important for us, especially as we’re analysing your account, working through Facebook’s tools and just general understanding of how to move to the next level.
ADVERTISING TERMS YOU NEED TO KNOW
We’ve prepared a list of the 33 most important advertising terms that you need to master in order to run profitable Facebook advertising campaigns. They are listed below in alphabetical order:
Add To Cart (ATC) – the number of add-to-cart events tracked by the Facebook Pixel that can be attributed to your ads.
Average Order Value (AOV) – a metric that measures the average dollar value of each order or sale made on your website. It’s calculated by dividing the total revenue by the total number of orders. AOV is one of the most important metrics you need to be keeping an eye on in order to determine your pricing and advertising strategy.
Bottom of Funnel (BOFU) – REMARKETING – last stage of the sales process. During this stage, the customer is already interested in purchasing from your company but might need some questions answered before making the final decision. This is where your hottest leads / customers are just waiting for you to give them the final push. It’s also where you can be more direct with your ad copy, offers and CTAs.
Campaign Budget Optimization (CBO) – an option that allows Facebook to automatically optimize the distribution of your campaign’s budget across all the ad sets in your campaign. It’s designed to help you get the best possible results with your available budget.
Click-Through Rate (CTR) – the percentage of people who saw your ad and then clicked on it. Calculated by dividing the total number of clicks by the total number of impressions. It can help you determine how effective an ad is in driving traffic to your website.
Conversion rate (CVR) – the percentage of ad clicks that converted to a sale. It’s calculated by dividing the total number of sales (conversions) by the total number of clicks.
Conversion rate optimization (CRO) – the process of optimizing your ads to provide more conversions.
Cost Per Click (CPC) – the average cost of one click on your Facebook ad. It’s also one of the most commonly used metrics for determining the efficiency of an ad campaign.
Cost Per Engagement (CPE) – the average cost of a user engaging with your ad. It’ is calculated by dividing total ad spend by the total number of engagements.
Cost Per Thousand Impressions (CPM) – the average cost of showing your ad to a thousand people. CPM is used to determine the cost-effectiveness of your campaign.
Cost per action (CPA) – the average cost of a visitor performing an action on your ad. It’s calculated by dividing your ad spend by the total number of actions performed.
Cost per purchase (CPP) – the average cost of a purchase driven through your ads. It’s calculated by dividing the total ad spend with the total number of purchases.
Cross-Sell (XS) – a sales technique used to encourage a customer to purchase a product that is related or complementary to the product they’ve already added to their cart. Facebook allows you to set up cross-sell campaigns using dynamic ads.
Custom Audience (CA) – a type of audience you can create for your Facebook advertising campaigns using customer data such as email addresses or phone numbers. To create a Custom Audience, you will need to upload your customer list to Facebook.
Customer Lifetime Value (CLTV / LTV) – a metric that provides a prediction of the total lifetime profit that can be attributed to a specific customer. CLTV is crucial in helping you determine how much you can afford to spend on acquiring a customer.
Down-sell (DS) – a sales technique that involves offering the customer a cheaper product when he or she wants to give up on purchasing the product they were initially interested in. The goal of down-selling is to make sure to acquire the customer, even if it means making less profit on that particular sale.
Dynamic Product Ads (DPA) – a type of Facebook ads that automatically promotes your products to people who have visited your website or app. You will need to upload your product catalog to Facebook in order to be able to use dynamic ads.
Initiate Checkout (IC) – the number of Initiate Checkout events tracked by the Facebook Pixel that can be attributed to your ads.
Landing Page (LP) – a dedicated page on your website where people who click on your ads are sent.
Landing Page Views (LPV) – the number of times your landing page was viewed by someone who clicked on your ad.
Lookalike Audience (LAL / LAA / LLA) – a type of audience you can create for your Facebook advertising campaigns by using an existing Custom Audience. A Lookalike Audience consists of people who are similar to the people in your Custom Audience.
Middle of Funnel (MOFU) –RE-ENGAGEMENT – The middle stage of the sales process. Here the customer is presented with your product or service as a solution to their problem. This is where the consumers who are just learning about you are living. They may have clicked one of your ads, engaged with your content, or even visited your site, but they maybe haven’t bought yet. But it is getting warmer!
One-click upsell (OCU) – a type of upselling offer where the customer is offered to add additional items to their cart with a single click.
One-time offer (OTO) – a type of upselling offer where the customer is offered to add additional items to their cart, but only for a limited amount of time.
Page Post Engagement (PPE) – a campaign objective that, when selected, tells Facebook to try to find people in your audience who are the most likely to engage with your posts.
Retargeting (RT) – the practice of advertising products or content to people who have already interacted with your content in some way. To be able to run retargeting campaigns on Facebook, you will need to place the Facebook Pixel on your website.
Return on Investment (ROI) – the overall return on the amount of money, time, and resources you invest in Facebook advertising.
Return on ad spends (ROAS) – one of the most important advertising metrics. It’s used to measure the performance of an advertising campaign. To calculate ROAS, divide the total revenue generated by the advertising campaign by the amount of money spent on the campaign.
Top of Funnel (TOFU) –PROSPECTING – Tthe first stage of the sales process. This stage is usually used to educate the customer on a problem her or she is having. This is where all your first interactions with consumers will be. We’ll spend at least 60% of our time and budget in
Up-sell (US) – a sales technique used to encourage a customer to purchase a more expensive product than the one they are considering. Facebook allows you to set up upsell campaigns using dynamic ads.
Video Views (VV) – the number of times your Facebook video ad was viewed for three seconds or more.
View Content (VC) – a type of Facebook advertising campaign optimization which aims to optimize your ads for receiving as much traffic as possible to a specific landing page.
Website Conversion (WC) – a campaign objective that, when selected, tells Facebook to try to find people in your audience who are the most likely to convert. You will need to install the Facebook Pixel on your website in order to use Website Conversions as your campaign objective.
Conclusion
There you have it, the 33 advertising terms you need to know in order to run profitable Facebook advertising campaigns. Whether it’s ATC, AOV, or just VV, understanding these terms can make you quick on your feet and put you ahead of the game.
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