Understanding Facebook Advertising

Facebook ads are WILDLY popular right now. Why, because THEY WORK...if they are done right. That's the key. (we do them REALLY well) As good as FB ads, are understanding what to do, how to do it, who to target and when to advertise can mean the difference between wasting a lot of money or turning a reasonable investment into something that helps your business EXPLODE!

(BIG BOOM HERE!)

The first step is to make sure you understand the terms. Here is a quick list from Sprout Social with some basic FB definitions.

Facebook advertising definitions

Facebook advertising has its own lexicon and it’s best to become familiar with these terms before you embark on your campaign adventures. You will only pay for your campaign goal but it’s possible that an ad can be interacted with in other ways. For example, boosting a post for engagement still creates a subtle Like button that users can click. You’ll only get charged for the post engagement. Even if your campaign goal isn’t to charge for impressions, you can still see what the average cost per 1000 impressions is.

  • Cost Per Click (CPC): If your campaign is set to charge for clicks (users have to click on an ad), then the CPC will be your metric. The average is $1.72 CPC.

  • Cost Per Like (CPL): Used in Like campaigns, the CPL is used when a user clicks Like when presented with an ad.

  • Cost Per Mille (CPM): Cost per 1000 impressions. This is most often measured for brand awareness.

  • Cost Per Action (CPA): For campaigns with specific actions in place, like an App Install, CPA is measured per action. The user will need to click the button for you to be charged.

  • Relevance Score: Applicable only to ads, this estimated metric is on a scale of 1 to 10. It’s only shown after your ad has received more than 500 impressions and is based on how your audience is responding to the ad.

  • Frequency: An estimation of how often a user sees your ad. This number is calculated by the total impressions divided by reach (total unique users). High numbers may indicate ad fatigue.

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