Facebook ADs Terminology
| Ad Campaign | A set of one or more ad sets and ads with a common goal, budget, schedule, and targeting. |
| Ad Set | A group of ads with the same budget, schedule, and targeting criteria within a campaign. |
| Ad Creative | The visual and textual elements that make up an ad, including images, videos, text, and headlines. |
| Ad Copy | The text used in an advertisement, including headlines, descriptions, and call-to-action buttons. |
| Ad Impressions | The number of times an advertisement appears on a user’s screen is called a “impression.” |
| Click-Through Rate (CTR) | The ratio of clicks an ad receives to the number of times it’s shown, expressed as a percentage. |
| Cost Per Click (CPC) | The amount you pay for each click on your ad. |
| Cost Per Mille (CPM) | The cost for every 1,000 ad impressions. |
| Conversion | When users click on your advertisement, they take the requested action, such as subscribing to your newsletter or purchasing. |
| Conversion Rate | “Conversion rate” is the proportion of users who perform the targeted action after clicking on an advertisement. |
| Click Fraud | Illegitimate or fraudulent clicks on an ad with the intent of inflating costs or harming a competitor. |
| Bid | The maximum amount you’ll pay for a desired action, such as a click or conversion. |
| Audience | The people you want to target with your ads based on various demographics, interests, and behaviors. |
| Custom Audience | A specific group of people created from your existing customer data, such as email addresses or website visitors. |
| Lookalike Audience | A new audience created by Facebook that shares similar characteristics with your custom audience. |
| Pixel | A piece of code placed in a website to track user interactions and measure ad effectiveness. |
| Ad Relevance Score | A metric measuring How relevant your advertisement is to the intended audience. It can affect the cost and performance of your ads. |
| Frequency | The average number of times a person has seen your ad. |
| Ad Placement | where your ads appear on the Facebook network, such as in the right-hand column, Stories, or News Feed. |
| Carousel Ad | An ad format that allows you to showcase multiple videos or images in a single ad unit. |
| Lead Generation Ad | an advertisement structure created to gather lead data—like email addresses—directly from users without them leaving Facebook. |
| Ad Schedule | The specific times and days when your ads are set to run. |
| Ad A/B Testing | Testing multiple versions of an ad to determine which performs best. |
| Engagement | Actions are taken by users on your ad, such as likes, comments, and shares. |
| Ad Budget | The total amount allocated for a specific ad campaign or set. |
| Objective | The specific goal you want to achieve with your ad campaigns, such as website traffic, conversions, or brand awareness. |
| Ad Delivery | The process by which Facebook decides which ads to show to users based on bidding, relevance, and other factors. |
| CTR (Link Click-Through Rate) | The percentage of users who click on a link in your ad. |
| CPI (Cost Per Install) | The cost of acquiring a new app installation through your ad campaign. |
| ROI (Return on Investment) | The measure of the profitability of your ad campaign, calculated as (Profit – Ad Spend) / Ad Spend * 100%. |
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