Marketing is full of acronyms and jargon which is where this Jargon Glossary sweeps in to save your day, literally. This glossary is a dictionary of the terminology most commonly used by marketing professionals.
The amount of money spent on advertising for a product or activity.
AOV (Average Order Value)
Average order value (AOV) tracks the average dollar amount spent each time a customer places an order on a website or mobile app. To calculate your company’s average order value, simply divide total revenue by the number of orders.
Your ad is what your customers or audience will see. At the ad level, you'll choose your ads creative, which may include things like images, videos, text and a call-to-action button.
Keep in mind that you can have multiple ads within a single ad set.
Upload an image, multiple images or a video.
Fill in the details of your ad such as the text and header you want your ad to have.
An ad set tells your ad how to run. At the ad set level, you'll create an audience for your ad using Facebook's targeting options. You'll define your audience by choosing things like location, gender, age and more. You'll also set a schedule for your ad and choose your placements.
Keep in mind that a campaign can include multiple ad sets, each with different targeting, and scheduling options selected.
The bottom of the funnel is the “purchase” stage of the online buying process.
Behavior Audience Targeting
Unlike precise Interests, Behaviors allow you to target people by purchase history, events they like, personal anniversaries, etc. This data is gathered by Facebook analyzing many factors and also using external data sets.
They are not always useful, but when they are they work great! As an example, you can target people currently traveling or planning their next trip … priceless if you’re in the hotel or event booking market. Check them out and see if they can work for your business.
Your Facebook ad needs 3 parts to run: a campaign, ad set and ad. All these parts make up what's called the campaign structure.
When you decide to run an ad, you'll always start with the campaign. Here, you'll choose an advertising objective, like Promote Your Page, which defines what you want your ad to achieve. For example, if you promote your Page, your ad will be optimized to get more likes on your business's Facebook Page. You will also set you budget at the Campaign level.
CBO (Campaign Budget Optimization)
Campaign Budget Optimization will distribute your budget across ad sets to get more results depending on your delivery optimization choices and bid strategy.
CPM (“Cost Per Mille” Cost per thousand impressions)
The CPM model refers to advertising bought on the basis of impression. This is in contrast to the various types of pay-for-performance advertising, whereby payment is only triggered by a mutually agreed upon activity (i.e. click-through, lead, sale).
The total price paid in a CPM deal is calculated by multiplying the CPM rate by the number of CPM units. For example, one million impressions at $10 CPM equals a $10,000 total price.
1,000,000 / 1,000 impressions = 1,000 units
1,000 units X $10 CPM = $10,000 total price
CTR (Click-Through Rate)
CTR stands for click-through rate and is a Facebook Ads metric that measures the ratio of clicks (how often someone clicked on your ad) to impressions (how many times your ad was viewed on the platform) for individual ads.
A conversion rate, put simply, is the percentage of your audience that completes a desired action out of your total audience. For example, if you want your audience to make a purchase on your website after they click your Facebook ad, the percentage of users who make purchases is your conversion rate.
CPA (Cost Per Action)
CPA stands for cost per action. Known on other digital marketing channels as cost per conversion, this is the price you pay for each action a user takes on your website because of your Facebook ad.
CRO (Conversion Rate Optimization)
The process of enhancing your website and content to boost conversions.
Custom conversions let you optimize your ads for custom events and All URL Traffic events, which can't be optimized on their own. For more information check out this link.
As you click on the Demographics tab, you’ll get plenty of targeting topics to refine your audience based on many options. The basic 3 are:
Age – If you’re targeting an audience with a specified age range, you can easily reach them by telling Facebook who your ideal customers are.
Gender – You can also select to target a particular gender.
Language – If you’re advertising in a particular language, you might want to only target the people who can understand your ads.
But you can get way more detailed. As an example, you’ll be able to target people by their political views, life events, job titles, ethnicity, and so on.
(DPA) Dynamic Product Ads
Dynamic ads look similar to other ads on Facebook, Instagram, Messenger and the Audience Network. However, instead of individually creating an ad for each of your products, you create an ad template that automatically uses images and details from your data feed for things you'd like to advertise.
Interests are one of the best (and easiest) Facebook ads targeting options as they allow you to target people specifically interested in a subject related to your product. For example, you could target people interested in your competitors or your broader market segment, or magazines and blogs covering your market.
To target based on interests, you can either browse the menu with hundreds of interests or simply type in one interest, so that Facebook will suggest to you other related topics.
The interests are based on Facebook users’ likes and interests, apps they use, Pages they’ve Liked, and more. Adding more than one interest will target people with at least one of them so you’ll make your reach broader.
(KPI) Key Performance Indicator
A key performance indicator is a type of performance measurement. You determine what your KPIs are so that you can evaluate the success of your campaign. For example, maybe the KPI is ROAS, Cost per ATC (Add to cart), etc.
LAL (Lookalike Audience Targeting)
Facebook Lookalike Audiences let you reach the people who are similar to your existing customer database – making them highly likely to convert as well.
To create a Lookalike Audience, you first need to create a Custom Audience to tell Facebook what type of users you want to reach. Next, select the “Lookalike Audience” from the audience creation menu and select a target country and a percentage (1%-10%) of the targeted country’s Facebook users. The percentage signifies the people most similar to your selected Custom Audience.
Lookalike Audiences help you to extend your ad campaign’s reach so that you only target people who are likely to be interested in your offer.
In digital marketing, a landing page is a standalone web page, created specifically for a marketing or advertising campaign. ... Unlike web pages, which typically have many goals and encourage exploration, landing pages are designed with a single focus or goal, known as a call to action (or CTA, for short).
The process of generating consumer interest for a product or service with the goal of turning that interest into a sale. Facebook has lead generation campaigns. You can also collect leads on your landing page and use a standard event.
An estimate of the average revenue that your customers will generate throughout their lifespan as a customer.
MoFu (Middle of The Funnel)
Middle of the funnel content refers to assets that reach leads who are already in your database, engaging with your brand. Marketers publish and distribute content at this stage to align a buyer's needs to relevant products or features, gauge a prospect's readiness to buy, and move the right people closer to purchase.
Super Top of the funnel refers to users that have never seen your brand before.
Evidence that a product or service is popular with a large number of people. Social proof on a ad can be comments, likes, ratings, reviews or testimonials.
Events are actions that happen on your website. Standard events are predefined by Facebook and can be used to log conversions, optimize for conversions and build audiences. See the link for a list of the standard events for the Facebook pixel.
When a potential customer starts a check out process for an online order but drops out of the process before completing the purchase.
ToFu (Top of the Funnel)
Top of the funnel marketing refers to the first stage of the buyer's journey. It is the part of the process where marketers will spread brand awareness about their products and services to generate leads that will hopefully, eventually, become customers.
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