April 21, 2016

Facebook Ads - Basic Advertising Terminology (2)

Clicks are the total number of click actions on your ad. Now depending on what you're promoting, this can include page likes, event responses, or app installs. CTR, or click-through rate, refers to the number of clicks you receive divided by the number of times an ad was shown of Facebook. The higher this number, the better your ad is performing. And, be careful, this number can appear really high if your ad has only been delivered and handful of times.

Costs per thousand

Next up, we have CPM, or cost per mille. This is the average cost you've paid to have one thousand impressions on your ad. And an impression is any time the advertisement is shown on the screen. But keep in mind an impression doesn't guarantee the user saw it, just that it appeared on the page.

Cost Per Click

CPC. This is the average cost per click for these ads. And it's calculated as the amount spent divided by the number of clicks received. Even if you're paying for ads on a CPM basis, you'll also see this number calculated.

And typically, you're aiming for the lowest CPC that still returns the results you want. Next we have frequency, and you'll see this number often. And in more advanced advertising, you'll be able to set a limit on this. It refers to the average number of times each person received an impression of your advertisement. Advertisers often try to cap this at a certain rate to prevent ad fatigue. And the last number you'll see often is called reach. And this refers to the number of unique people who saw your ad. So, for example, if 100 different people saw your ad, your reach would be equal to 100.

So you can have a reach of 100 with an average frequency of seven, and that would indicate 100 unique people each saw your add seven times which means 700 impressions. You'll encounter these terms when you decide on your advertising objective and as you take a look at your advertising reports. You'll make important decisions that will impact how much money you spend and whether or not your campaign is successful. So, a basic understanding of these terms is key. For a full list of terms and definitions used by Facebook, check out the full glossary at the link shown on the screen

In the next blog, I'll be delving into - 'Understanding Facebook Ads.'

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