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The most common Facebook Ads terms

HT Vũ Ngọc 12 Jan, 2025 Facebook Marketing
The term Facebook Ads will help you grasp advertising-related knowledge more quickly. At the same time, it will guide you on how to run ads effectively and avoid unfortunate risks. In today’s article, we will share with you some common advertising terms on Facebook.

I. Basic Facebook Terms Related to Fanpages

A Fanpage is one of the most popular advertising channels. However, not everyone is familiar with the basic advertising terms related to Fanpages. Below is a list of terms you need to know:

1. Potential Reach

Simply put, potential reach refers to the number of potential customers who could see your ad. Facebook determines this number based on two factors: the budget and the target audience that your ad is aimed at.

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2. Placement

This Facebook term refers to the location where your ad will be displayed. Currently, ads on this social media platform can appear in three positions:

  • Mobile Newsfeed
  • Desktop Newsfeed
  • Right Column of Desktop Newsfeed

3. Newsfeed

Newsfeed is a term used for both ads and regular Facebook users. Simply put, Newsfeed refers to the feed on a user’s wall, showcasing posts from friends and family on social media. It also includes ads from the Fanpages that the user follows.

4. Page Engagement

This Facebook term is now extremely common to refer to user interactions with ad posts. These interactions include likes, comments, shares, clicking “See More,” video views, etc. The higher the Page Engagement, the more effective the ad is, and the higher the likelihood of attracting potential customers.

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5. Post Engagement

This Facebook term refers to the actions users take on an ad. For example, with ads that include a video, when users click to watch the video, it counts as an action. If the ad contains a link to a website and users click it to visit a specific landing page, that is counted as another action.

6. Page Like

Page Like refers to the number of Likes received during the ad campaign. These Likes come from two sources: the Like button on the ad posts or from the Like button to follow the Fanpage. The larger this number, the more attention your ad is receiving from users.

7. Reach

Reach is the term used to refer to the number of users who see the ad, also known as exposure. For interactive ads, reach is not charged. Charges only occur when users click on the ad.

8. Report

A Report is the advertising summary returned during and after a campaign. The information in the report includes the number of impressions, click-through rate, bid for each interaction, etc. Businesses use these metrics to assess the effectiveness of the ad and develop new strategies to achieve their desired results.

9. Result

The term “Result” refers to the outcome of an advertising campaign based on specific actions taken by users. Whether this metric is considered good or not depends on the goals set for each ad campaign.

II. Terms Related to Facebook Advertising Costs

The cost of Facebook advertising is a factor that many people focus on when using this form of marketing. Here are some basic advertising cost terms you should remember: CPA, CPM, CPC, average CPM, average CPC, and cost per 1000 reached.

1. What is CPA?

CPA, also known as Cost Per Action, is an advertising cost calculation method based on conversions. This means that you will only pay Facebook when users perform a specific action with your ad, such as submitting contact information, making a purchase, or completing a payment.

2. What is CPM?

CPM stands for Cost Per Mile, and this pricing method is based on impressions. When you choose this form of advertising, you will pay for 1,000 ad impressions. You do not need to worry about user interactions with the ad.

Along with this, there is also the term average CPM, which refers to the average cost for 1,000 ad impressions. Whether the price is high or low depends on several specific factors related to each advertising campaign.

3. What is CPC?

CPC, also known as Cost Per Click, is a pricing method based on user interactions with the ad. Specifically, when users like, share, click to read, or comment on the ad, Facebook will start charging for the ad. Additionally, there is the term average CPC, which refers to the average price an advertiser must pay for each user interaction with the ad.

4. Cost per 1000 reached

This Facebook term refers to the cost an advertiser pays for 1,000 unique impressions of their ad. It is important to distinguish this term from CPM, as CPM refers to the cost for 1,000 impressions within an entire campaign. If the campaign lasts for an extended period, there will be multiple instances of “1,000 impressions.”

III. Terms Related to Facebook Advertising Bidding

Bidding is another important factor to consider alongside advertising costs. Facebook bidding terms include “bid” and “price,” specifically:

1. What is a Bid?

A bid refers to the maximum amount an advertiser is willing to pay for 1,000 impressions, 1 interaction, or 1 conversion generated by the ad. You can set this bid in the “Budget and Schedule” section while setting up the campaign.

2. What is Price?

Unlike a bid, price refers to the actual amount you pay Facebook for 1,000 impressions, each interaction, or each conversion generated by the ad. In reality, the price is always lower than the bid amount because Facebook aims to attract more users to use its services.

IV. Other Facebook Advertising Terms

In addition to terms related to Fanpages, advertising costs, and bidding, Facebook also has several other standalone terms, which are listed below:

1. What is “Voi” in Ads?

For those running ads, this term is often encountered. So, what does “Voi” in Ads mean? In fact, this is an abbreviation for “Invoice,” referring to an advertising account that Facebook provides a credit limit for payment. Simply put, a typical ad account has a daily spending limit, while a Voi account can spend continuously until the credit limit is exhausted.

2. What is a Facebook Campaign?

Many people wonder what a “campaign” is in Facebook advertising. This term refers to an advertising campaign on Facebook. A single advertising account can create multiple campaigns. Within each campaign, you can create several ad sets, and within each ad set, you can use different ad creatives.

3. Ad fraud

“Ad fraud” refers to running Facebook Ads without paying Facebook for the service. Each advertising account can only run ads without paying once, after which it will be locked. The amount of money involved depends on how much you had spent on Facebook ads before.

4. What is Target?

Target is a Facebook term that refers to the target audience for your ads. Currently, Facebook offers criteria such as gender, age, location, interests, and behaviors to help narrow down the appropriate audience for your ads.

Additionally, you can use lookalike or custom audiences. The advantage of these groups is that they closely match the target customer base for the products or services your business offers.

5. Facebook Advertising Account

A Facebook advertising account is an essential tool that helps you run and manage advertising campaigns. This platform currently offers two types of accounts: personal Facebook accounts and Facebook Business advertising accounts. It is recommended to use a Facebook Business account to receive more benefits and support.

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6. Flagged Advertising Account

Many newcomers to Facebook Ads may not be familiar with the term “flagged account.” This term refers to an advertising account that has been blocked and can no longer be used to run ads. There are several reasons an account may be flagged, such as:

  • Violating community or advertising policies.
  • The Fanpage running ads has issues such as spamming, buying fake likes, etc.
  • The ad has been reported by many users to Facebook.

7. What is CTR?

CTR stands for Click-Through Rate, which refers to the ratio of users who click on an ad. The formula for calculating CTR is:
CTR = (Number of clicks / Number of impressions) x 100%.
This metric reflects customer interest in the ad and conversion potential, making it highly important for advertisers.

8. What is Frequency?

The term “frequency” in Facebook advertising refers to how often an ad is shown to a user. You can monitor this metric in the “Ads Manager.” If the “Frequency” column shows 3.6, it means your ad has been shown to the same customer 3 times. The higher this number, the better the recall of your product or service by the customer.

9. What is PPE?

PPE stands for Page Post Engagement, which refers to running ads aimed at increasing interaction. The main goal of this type of ad is to optimize engagement with posts, such as increasing likes, shares, and comments. Facebook’s algorithm will target users who are more likely to interact on social media, considering behavioral factors to increase engagement from this audience.

10. Customer Segment

Customer segment is an important Facebook term for advertisers. It refers to a group of individuals who share common interests, behaviors, demographics, or other factors. For example, a group of customers with a shared interest in makeup, a group of student customers, or a group of customers located in Ho Chi Minh City. If you accurately identify your target customer segment, your advertising campaign will be more effective. On the other hand, if you misidentify this segment, the ad may fail.

11. What does test mean?

Test is a Facebook Ads term that refers to experimentation. This is a crucial step for any advertising campaign. Running tests will help you identify the optimal state for your ad and the most cost-effective approach. The three most important factors to focus on when conducting a test are:

  • Time and timing
  • Ad content
  • Customer segment

These are some of the most common Facebook Ads terms that we have compiled. Mastering these terms will help you run more effective ads and avoid potential risks.

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