Published on February 21, 2014
An individual ad is defined as both its ‘creative’ (the body copy, headline and image) and the audience you’ve targeted for that ad.
Actions are the number of actions Facebook users took on your ad even if they didn't click through it. For instance, if your Sponsored Post receives 2 Shares and 2 comments, it counts as 4 actions. Other actions include Page Likes, app installs, clicks, etc. Actions are calculated (and displayed in your ad analytics) every 24 hours and 28 days after the first click on your ad.
All Facebook Ads go through the ad auction before they are made live on the newsfeed. Facebook pits ads against each other and determines which are most likely to be successful based on ad budget and targeted audience. Facebook only charges your ad the amount necessary to win the auction. This may be less than your maximum bid.
Bid (or, more accurately, maximum bid) is the maximum amount you’re willing to pay per click (if bidding with CPC) or per thousand impressions (if bidding with CPM). Your maximum bid determines (along with your targeted audience) how often you’ll win the ad auction (see above).
A campaign is a group of Ads with the same ad budget that are generally focused around the same subject or product promotion. A campaign is extremely useful when split testing the effect of different variables on ad performance, as it makes comparing results simple.
Average Cost Per Click: The amount you pay every time someone clicks on your Ad. Calculated by… The number of times your ad is clicked on Cost for that ad during the same time period
Average cost per thousand impressions: The amount you’ re paying for every thousand views of your Ad (including multiple views). CPM is calculated as: The # of thousands of times your ad is displayed Cost for that ad during the same time period
Cost per mille, or (in other words) cost per thousand impressions: There’s no reason to use CPM since CPC and oCPM have been integrated into the ad tool.
Cost Per Click: CPC is the optimal bid type if you’re looking for a click-through. You’ll pay each time someone acts on your ad’s call-to-action. Remember to set your click budget manually. We recommend a click budget between 20 and 40 cents.
Optimized cost per mille (oCPM): This bid type is best for showing your ad to the people who are most likely to take action on your ad. For example, liking your Page or clicking a link.
Click-Through-Rate is the number of clicks your Facebook Ad received divided by the number of times that ad was shown to Facebook users (Clicks over Impressions).
Clicks are the total number of clicks on your ad. Depending on what you're promoting, this can include Page likes, event responses or app installs.
Conversions are the number of times people Liked your Page, RSVPed to your event or took an action on your website within 28 days of clicking on your ad. Conversions can be seen in your analytics dashboard only if your Facebook ad links to a Facebook Page, event or App - otherwise we recommend you track conversions with another analytic program.
Cost Per Action is the amount you’re paying (on average) for each action people take on your ad. Provided you’re paying by CPM, Facebook ads that are well targeted and engage better will have a lower CPA than ads that don’t.
Frequency is the average number of times each Facebook user saw your ad. We recommend you rotate your ad’s creative or targeted audience when your frequency reaches a maximum of 5. Test your own optimal frequency.
Impressions are the number of times your ad was viewed (including multiple views). For example, if 50 people saw your ad 5 times, it would be reported as 250 impressions. This also means your ad’s Frequency metric would be around 5.
Interest targeting let you target your ad based on what Facebook users have included on their timelines as well as what other Pages, groups and other content they’ve engaged with. This information includes everything from favorite books and movies to relationship status, changes in job title and car ownership.
PTA is the number of unique people who took an action (Liking your Page, installing your App, etc) as a result of your Facebook ad. Remember this is a metric based on people: if one person Likes, comments and shares your promoted post this will count as only one PTA.
Potential Reach is the approximate number of people your ads or sponsored stories can be seen by based on your targeting criteria. The amount of Facebook users who actually see your ad (the percent of your potential reach) is determined by your ad budget.
Social Ads are different from normal ads as they include social information (i.e. “Jane Smith Likes This”). These ads perform better across the board than antisocial ads (though they are also more expensive).
Suggested bid is based entirely on the ad auction currently running for your targeted audience. The suggested bid range is determined by the CPC or CPM bids that have won the ad auction recently. You can check the current range of suggested bid at any time to see when it’s at its most cost effective.
Targeted Audience is the number of people your targeted ad can be seen by. Test for yourself the results your ad gets from a specifically targeted audience (less than 100,000 people) or a more general audience (more than 1,00,000).
A custom audience is an ad targeting strategy in which you import your existing business contacts (merchants, email subscribers, etc) into Facebook’s ad tool. Facebook will find the Facebook user that corresponds to the email you’ve provided. This list of users can then be targeted with a Facebook Ad.
Available only through the Power Editor plugin, a lookalike audience is created from a custom audience list. Facebook finds users similar to your existing custom audience. Lookalike audiences can be generated with either 1% or 5% similarity. 1% similarity gives you a tighter targeting strategy, while 5% gives you a larger, but less specific, audience.
Website custom audience targeting is a new development in which Facebook provides you with a pixel (code) which you can place anywhere within your website. All web traffic that triggers this pixel will be tracked on Facebook and an audience is generated. This means you can target your web traffic on Facebook without first receiving their email address.
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