30+ Common Facebook Advertising Terms in One Article

Running off-Facebook advertising can be very profitable, but can be difficult to master. One of the reasons is that you need to understand a lot of advertising terms and marketing concepts. You can find that almost all important advertising indicators and terms have their acronyms. It takes a lot of effort to look up the explanations one by one. For this reason, this article lists a list of Facebook advertising terms, which are arranged in alphabetical order:

Add To Cart (ATC)

The number of cart additions tracked by the Facebook Pixel can be attributed to your ads.

Average Order Value (AOV)

A metric that measures the average dollar value of each order or sale on your site. It is calculated by dividing total revenue by total orders. AOV is one of the most important metrics you need to pay attention to in order to determine your pricing and advertising strategy.

Bottom of Funnel (BOFU)

BOFU is the final stage of the sales process. At this stage, the customer is already interested in purchasing your product, but may still need to make certain considerations before making a final decision;

Campaign Budget Optimization (CBO)

CBO allows Facebook to automatically optimize the allocation of your campaign budget across ad sets. Its purpose is to help you get better marketing results with your existing budget;

Click-Through Rate (CTR)

CTR is a Facebook advertising metric that is the ratio of a single ad’s click-through rate (how often someone clicks on your ad) to impressions (how many times your ad is viewed on the platform). It is calculated by dividing the total number of clicks by the total number of impressions. It helps you decide how to drive traffic to your website through effective advertising;

Conversion Rate (CVR)

Ad clicks that convert into sales. It is calculated by dividing total clicks by total sales;

Conversion rate optimization (CRO)

The process of optimizing ads to increase conversion rates;

Cost Per Click (CPC)

The average cost per click on a Facebook ad is the amount you pay the platform each time a consumer clicks on your ad. It is also one of the commonly used metrics to determine the efficiency of advertising campaigns;

Cost Per Engagement (CPE)

The average cost of a user engaging with an ad. It is calculated by dividing the total ad spend by the total ad engagement;

Cost Per Thousand Impressions (CPM)

The average cost of showing your ad to one thousand people. CPM is used to determine the cost-effectiveness of an advertising campaign;

Cost per action (CPA)

This is the average cost of an action a visitor takes on your ad, such as a transaction, registration, or ad click. It is calculated by dividing your ad spend by the total number of actions performed;

Cost per purchase (CPP)

The average cost of a purchase driven by your ad. It is calculated by dividing the total ad spend by the total number of purchases;

Cross-Sell (XS)

A sales technique used to encourage customers to purchase products related to those they have already added to their shopping cart. Facebook allows you to set up cross-selling campaigns using dynamic ads;

Custom Audience (CA)

You can use customer data like email addresses or phone numbers to create one type of audience for your Facebook ad campaigns. To create a custom audience, you need to upload your customer list to Facebook.

Customer Lifetime Value (CLTV / LTV)

Customer lifetime value is the total amount of money a customer spends with your business. It is calculated by multiplying the number of purchases a customer makes by the profit generated from each purchase. By tracking and comparing this data, you can help you determine how much it costs to acquire a customer.

Down-sell (DS)

A sales technique in which a customer is tempted to forgo a product they were initially interested in, and offering them a cheaper product may lead to a purchase. The goal of price reduction is to secure the customer, even if it means making less profit on a particular sale.

Dynamic Product Ads (DPA)

A type of Facebook ad that promotes your products to people who have visited your website or app. You need to upload your product catalog to Facebook to use dynamic ads;

Initiate Checkout (IC)/Initiate Payment

The number of payment actions initiated, tracked by the Facebook Pixel, that can be attributed to your ad;

Landing Page (LP)

A landing page is the page that a user receives after clicking on an ad;

Landing Page Views (LPV)

The number of times your landing page was viewed via ad clicks;

Lookalike Audience (LAL/LAA/LLA)

By using an existing Custom Audience, you can create a type of audience for your Facebook ad campaign. Lookalike audiences are made up of people who are similar to your audience;

Middle of Funnel (MOFU)

The middle stage of the sales process. In this stage, customers are looking at the product or service you present as a solution to their problem;

One-click upsell (OCU)

A form of upsell where customers can add additional items to their shopping cart with just one click;

One-time offer (OTO)

A form of upsell where customers can add additional items to their shopping cart, but only for a limited time;

Page Post Engagement (PPE)

A type of ad on Facebook where engagement includes likes, analytics, and comments, with the goal of identifying products with high engagement.

Retargeting (RT)

The practice of promoting products or content to users who have already interacted with the content in some way. To be able to run retargeting campaigns on Facebook, you need to place the Facebook Pixel on your website.

Return on Investment (ROI)

The total return on the money, time and resources invested in Facebook advertising;

Return on ad spend (ROAS)

One of the important advertising metrics, used to measure the effectiveness of advertising campaigns. It is calculated by dividing the total revenue generated by the advertising campaign by the amount spent on the advertising campaign;

Top of Funnel (TOFU)

The first stage of the sales process, which usually refers to the process of obtaining more exposure and accumulating more user data;

Up-sell (US)

A sales technique used to encourage customers to purchase a more expensive product than the one they were considering. Facebook allows you to set up upsell campaigns using dynamic ads;

Video Views (VV)

Refers to the number of times a Facebook video ad is viewed for three seconds or longer.

View Content (VC)

A type of Facebook ad campaign optimization that aims to optimize ads to receive as much traffic as possible to a specific landing page;

Website Conversion (WC)

An ad objective that, when selected, tells Facebook to try to find people in your audience who are most likely to convert. You need to have the Facebook Pixel installed on your website to use website conversions as your campaign objective.

Author: Traffic FB

Source: Traffic FB