1. Ad Campaign: A set of advertisements with a shared goal, budget, and targeting strategy.
2. Ad Set: Within a campaign, an ad set is a group of ads targeted at a specific audience. It includes the budget, schedule, bidding strategy, and targeting criteria.
3. Ad Creative: The content of the advertisement, including images, videos, text, and links.
4. Campaign Budget Optimization (CBO): An option that allows Facebook to automatically optimize the distribution of your campaign’s budget across all the ad sets in your campaign. It’s designed to help you get the best possible results with your available budget. We use CBO for our Hero campaign and Retargeting campaign.
5. Ad Set Budget Optimization (ABO): Ad Set Budget Optimization (ABO) is a Facebook advertising strategy that allows advertisers to allocate a set budget to each individual ad set. This means that each ad set has its own budget, and Facebook optimizes delivery within that ad set based on the target audience and performance metrics. We use ABO for all testing campaigns to give each ad set a fair chance.
6. Audience Targeting: The process of selecting specific demographics, interests, behaviors, or other criteria to reach a particular audience with ads.
7. Custom Audience: An audience created from customer data such as email addresses, phone numbers, or website visitors, which can be targeted with ads.
8. Lookalike Audience: An audience created by Facebook or Instagram that resembles a custom audience, based on similarities in characteristics.
9. Pixel: A piece of code provided by Facebook that is placed on a website to track actions taken by visitors and to optimize ad targeting and measurement.
10. Reach: The total number of unique users who see an ad.
11. Engagement: The interactions users have with an ad, such as likes, comments, shares, and clicks.
12. Impressions: The number of times an ad is displayed, regardless of whether it is clicked or engaged with.
13. Click-Through Rate (CTR): The percentage of users who click on an ad after seeing it.
14. Conversion: When a user completes a desired action after clicking on an ad, such as making a purchase, signing up for a newsletter, or filling out a form.
15. Cost Per Click (CPC): The average cost paid for each click on an ad.
16. Cost Per Mille (CPM): The cost per one thousand impressions of an ad.
17. CPA: The cost per action (action is decided by campaign objective)
18. CPP: Cost per purchase
19. ATC: Add to cart