When you first start running ads on Facebook, you will often encounter a lot of specialized terms and can not understand their meaning, even if you search Google, you will not find it too. In many cases, the Facebook Ads term is even abbreviated, confusing newcomers.
Most of these terms are often called in a natural and unconventional way. By the time you are proficient in running Facebook ads, you will be familiar with terms such as: camp, budget, target, spent, test, bid, price…
In today’s article, Ola City wants to share with you the necessary terms to help you learn and run ads on Facebook most effectively. We invite you to follow along!
A person may see your ad more than once on their Facebook feed. Frequency is the metric that defines the average number of times your ad was shown to the same person.
This is the most common metric that most anyone running Facebook ads should know. This metric tells you how many times your ad has been shown to customers.
In simple words, when customers come across your ad on their news feed, just seeing is counting reach. So to have a high reach, you must have the right time zone to optimally advertise to customers.
Budget is the amount of money you will spend on your ad campaign. You need to understand one thing, Facebook only charges when your ads get the results you want.
If you spend $5 for Facebook to optimize interactions, then when there is an interaction, Facebook will charge you. You can stop advertising whenever you want, even if it only costs $1. Facebook offers you two main ways to budget:
- Daily budget
This is the amount you want to spend on ads for 1 day. Example: If you choose a daily budget of $5, Facebook will calculate and use up that $5 in 24 hours. Continue like this for the following days, if you continue to advertise.
- Lifetime budget
Depending on your advertising strategy, you choose the right budget calculation method for you. In a word, you will spread the budget over a period of time. For example, if you set your spending to $5 within 7 days, Facebook will automatically calculate your spending so that you can spend $5 in those 7 days.
4. Biting money – Minus money
You often hear Facebook “biting money” but do not understand what it is? Biting money is a way of saying when Facebook spends your money. Ads after being approved will start biting money. However, sometimes you will still encounter the phenomenon of Facebook approved but not biting money.
This is the cost for each result Facebook gives you such as post engagements, website clicks, etc., depending on the form of advertising you chose from the start. When your ads get a lot of results, for example, more people interact with your post, Facebook will reduce your advertising costs.
This social network always prioritizes user experience, if your ads attract a lot of interest, Facebook will optimize costs, even prioritize showing your ads over other competitors. In a word, the more interest in your article, the lower the cost.
Therefore, you must always find a way to make your article very attractive to viewers in terms of both form and content. And yet, to manage costs well, you must know A/B Testing techniques when advertising with Facebook.
6. CPM (Cost per 1,000 impression)
CPM is the cost per 1000 times the ad is shown. When your ad appears in the News Feed, or the right column is counted as an impression. CPM can also be understood as the level of advertising competition of that customer file.
For example, if you have a Pitbull hobby client file, too many people running ads to it will drive up CPMs. The higher the CPM, the more money you need to spend for your ads to have a chance to show to customers.
7. CPC (Cost Per Click)
CPC stands for Cost Per Link Click. With this method, you will pay every time someone clicks on your link that leads them to your website or app.
If you’re optimizing for link clicks, Facebook will optimize to find people who are most likely to click on your ad. CPC can be a good choice if your goal is to send people to your website or app.
With CPC, you can bid manually. Your bid is the maximum amount you are willing to pay for each link click. For example, if you set your bid to $1, you will never spend more than $1 per link click. In some cases, you may spend less than your bid. To choose a CPC or bid to use, click Show Advanced Options in the Budget & Ad Creation section.
8. Run ads without paying
This is the type of running Facebook ads but not paying for Facebook. You will ask the question “Why is it possible to run ads without paying?” If you notice, Facebook will let you run ads first, then pay later. And only a Business account can do this. For personal Facebook accounts, Facebook forces you to recharge first and then run ads later.
Some individuals have taken advantage of this point for their own gain. They will buy a virtual visa card (maybe a real visa) to run ads. Facebook will pay in increments of $25 – $50 or more. Once they have paid the $25 threshold, their account will be debited to $50. And now, if they want to run ads without paying, they will run ads to $50 and steal money, not paying for Facebook.
In 2016, Facebook locked most Vietnamese accounts with Paypal for payment, because “people boom” often use Paypal to get rid of debt. This is why many newbies are often flagged by Facebook when adding Paypal to their payment method.
This is the number of people your ad might reach based on the audience you target.
For example, if someone says “Target people who like cats”, you must understand “Target audience, find behavioral preferences of people who like cats”.
10. What is the account Facebook ads flagged as?
In the process of learning and practicing running Facebook ads, you will encounter a case where your Facebook ad account is flagged and locked. This is completely normal when it comes to Facebook advertising.
A blocked ad account means you can’t run ads with this account. There’s nothing left to do but sit and watch it. Rest assured, when Facebook locks your ad account, they always leave a reason for the account to be flagged.
11. Click Through Rate (CTR)
CTR is a metric that measures the number of clicks your ad received per each impression. It’s a kind of a success rate —the bigger the percentage, the better your ad is performing. Facebook calculates it by dividing the total amount of impressions by the clicks the ad got. If the percentage is low, tweak your audience, visual, or text to get better results.
All ads you create on Facebook go under separate ad sets. All ad sets fall under different campaigns. Here’s an example of the structure a clothing store might have in Ads Manager: Campaign (Black Friday) -> Ad set (Women) -> Ad (Black Friday Women Promo 50% Off).
PPE stands for Page Post Engagement, also known in the profession as running ads to increase engagement. PPE is a form of running ads on Facebook to optimize the amount of interaction with posts. Optimizing interaction means optimizing the number of likes, shares, and comments for the article you promote.
Facebook will target users who often have the habit of interacting on Facebook, ads will help you reach products to these people, combined with other behaviors and interests. This can be said to be the most common and simplest way to run ads, almost everyone has run through this form of PPE.
14. Client file
Customer file is a phrase that refers to a group of customers with specific behaviors and specific interests. The customer file acts as a destination, you have to target (target) to hit the target (customer file). Eg:
- The customer file who loves Korean cosmetics: includes Korean cosmetics lovers.
- File of customers who like Iphone: includes people who are using Iphone.
The customer file plays an extremely important role when running ads on Facebook, when you own a quality customer file, the problem of running ads is 80% solved.
In the process of learning about Facebook ads, you will hear many people mentioning test ads, running tests, testing ads,… In Facebook ads, no one can be sure of an outcome. So you always have to test ads for case-specific results.
You can test many factors in the ad such as: content, image, target, budget, … to find out the difference between campaigns. A basic rule when testing elements in Facebook ads is that you need to test the elements, the rest must be left unchanged.
You need to test the target of 2 camps A and B, you just let the target part of these 2 camps be different, and all other factors must be the same. Only in this way can you ensure the objectivity of both campaigns.
The bottom line
Ola City has just explained to you 15 basic and important terms you need to know when advertising with Facebook. Knowing these terms makes it easier for you to receive knowledge about Facebook, even helps you talk more “professional” when communicating with colleagues running ads. Good luck!
Ola City Global