Facebook Pay-per-click advertising (PPC)

Facebook Ads – The most important abbreviations at a glance

Facebook ads abbreviations

CPA, CC, DPA, UPP – in social media marketing, many abbreviations have become established in the normal language usage. But not everyone knows what is behind it, especially when you are just at the beginning of the online activity and much is new. Especially Facebook ads abbreviations are often very confusing for newcomers.

facebook-advertising

To give you some more insight, we’ve put together the most important shortcuts for social media marketing and Facebook ads in this blog post and explain what it’s all about:

General abbreviations in social media marketing

Ad (Advertising)

“Ad” is the abbreviation for Advertising. It generally means advertising in itself and any kind of advertising material. For example, the paid ads on Facebook are also called “Facebook Ads”.

AI (Audience Insights)

In Social Media Marketing, AI does not stand for Artificial Intelligence, but for Audience Insights, the Audience Insights. There, advertisers receive valuable information about three different groups of people: people who are connected to their page, people of the custom audience and people on Facebook. Audience Insights data can be used to create ads that are more targeted to the audience and to find new groups of people that are similar to the current audience.

AOV (Average Order Value)

The average order value (AOV) is a key figure from e-commerce. To calculate the measure, the total revenue is divided by the number of orders.

API (Application Programming Interface)

The application programming interface (API) provides programs with tools to connect to a software system.

BM (Business Manager)

The Facebook Business Manager is a tool that is made available to companies and advertisers of Facebook for free. The tool can be used to manage multiple pages and ad accounts and give different access to different people.

CR (conversion rate)

The conversion rate tells you how many of the website visitors did the desired action. For the calculation, the total number of website visitors is divided by the number of people who have performed the desired action.

KPI (Key Performance Indicator)

KPIs are key metrics that reflect entrepreneurial performance and serve as targets. Therefore, the KPIs are always company-specific, as they are derived from their respective business objectives.

LTV (Lifetime Value)

Translated, the LTV benefits from “customer lifetime value”. This represents the net profit that can be allocated to a customer for a certain amount of time. The value is based on own assumptions or calculations. The following data can be included:

  • The total sales of the customer
  • Dwell time on the website when a purchase is made
  • Approximate length of customer relationship with the company

Based on these customer values, a custom audience can be created. This can, in turn, be used as the basis for a Value-Based Lookalike Audience.

ROI (Return on Investment)

The ROI (return on investment) is an important indicator in marketing. Here, the capital used (e.g. advertising amount) is set in relation to the profit generated (e.g. purchases attributable to the advertisement on Facebook). Thus, the ROI provides information about the efficiency of the entrepreneurial activity.

RT (retargeting)

Retargeting, or remarketing, is a personalized targeting strategy. Visitors to a website will be redirected to advertising after leaving the homepage. In order to be able to use retargeting on Facebook, the Facebook pixel must be implemented on the website. Visitors to the site can be added to a Custom Audience (WCA) site and targeted.

TOS (Terms of Service)

TOS stands for Terms of Service. Behind it hiding conditions of use, for example, from Facebook.

UGC (User Generated Content)

User-Generated Content means content that is not created by the website operator or the person responsible for the Facebook page itself, but rather by the users. User-generated content can include images, reviews, comments, blog posts, or videos.

UPP (Unpublished post / Dark post)

A Dark Post is an unpublished page post created with the Facebook Ad Manager. It does not appear in the newsfeed of the site, but it can still be used for advertisements. A Dark Post can also be published later on a Facebook page in the Business Manager via the tab “Page contributions”. Before the release of various versions of a posting on dark posts to be tested.

USP (Unique Selling Proposition)

The USP (unique selling point) describes the characteristics of a product or service that sets the product apart from other offers.

Creation of Facebook ads

AB (Auto Bidding)

The playout of Facebook ads is based on an auction model. You can choose between automatic or manual bidding. For automatic bidding (AB), the Facebook advertising auction system adapts the bid so that as many actions as possible are made within the set budget.

CA (Custom Audience)

A CA (Custom Audience) is an audience type that can be created from existing customer or prospect data.

CC (Custom Conversion)

Custom conversions are an alternative to Facebook’s standard events. Once the Facebook Pixel is implemented on the website, up to 100 Custom Conversions can be created to measure custom actions on the homepage.

CTA (Call to Action)

The call to action is an action request for the target group. In Facebook ads, various Call to Action buttons can be added to tell users what to do. For example, you can choose to “send message”, “contact us”, “download” or “more about it”. According to the request for action then a link or form can be deposited.

CTW (Click to Website)

On Facebook, there are various advertising goals to which an ad can be optimized. One of them is “Click to Website”, i.e. Traffic. With this type of advertising, as many users as possible should be made to click on the Call to Action, so that they can then be directed to the deposited landing page or website.

DPA (Dynamic Product Advertising)

With Dynamic Ads from Facebook, products are automatically distributed to the people who have already connected to the website, the app or elsewhere with the company on the Internet. A prerequisite for Dynamic Product Advertising is a product catalog and the one-time setup of the campaign.

LA / LAA / LLA (Lookalike Audience)

A Lookalike Audience is a target group that resembles existing customers or prospects. For this purpose, a target group is created which has demographic data or interests similar to those of the underlying target group, on the basis of which the LA is formed. The size of the Lookalike Audience can be defined variably. It is true that the smaller, the more similar it is to the underlying target group.

LTB (Lifetime Budget)

The LTB is the term budget that can be set when creating an advertisement.

MB (manual bidding)

Manuele bids are the second way to participate in the ad auctions on Facebook. The bid value for the bid is set by the advertiser himself.

PPE (Page Post Engagement)

Page Post Engagement is in English for post interactions. If a Facebook ad is created, it can be optimized for PPE, ie for interactions. This means that the ad will appear primarily to those who respond to ads and interact with the post.

WCA (Website Custom Audience)

The website Custom Audience is a targeting option for Facebook ads. The Facebook Pixel matches the visitors of the website with the people on Facebook. Based on this, the target group is created.

metrics

ATC (Add to Cart)

Add to Cart translates to “add to cart”. With the “Add to cart” event, Facebook Pixel can track how many times the action has been taken. In the metrics for the evaluation of the advertisement, the number can be found under “Add to cart on website”.

CPA (Cost per Action)

The CPA (cost per action) indicates the effective efficiency of an ad campaign. At the beginning of a campaign, this “action” or the intended action must be precisely defined in order to be able to evaluate it after the advertisement. The cost per action (CPA) then indicates the average value that an action costs on Facebook.

This number is influenced by many other factors, such as how the ad is designed and how many advertisers are simultaneously trying to play ads in the same audience. If the competition is very high, this can lead to higher costs per action. It should be noted that the CPA should never be higher than the margin on a particular product, otherwise no profit will be made with the sale of the product. The CPA cannot be found directly in the Facebook advertising account, where the costs incurred are all listed separately, for example, “Cost per page interaction”, “Cost per post interaction” or “Cost per website conversion”.

CPC (Cost per Click)

The “Costs per Click”, the cost per click in German, indicates the average cost per click on the ad. The calculation is done automatically by Facebook and will appear in the results of the ad. If you want to understand the bill, the total expenses have to be divided by the number of clicks (e.g. link clicks).

CPE (Cost per Engagement)

The average cost per post interaction, the CPE, tells you how much interaction with the post cost on average. For example, interactions with the post may include: responding to the ad, commenting or sharing the ad, claiming an offer, viewing a photo or video, or clicking a link.
For the calculation, Facebook divides the total expenses by the number of interactions with the contribution.

CPP (Cost per Purchase)

CPP stands for Cost per Purchase, i.e. costs per purchase. On Facebook, the metric is “cost per web page purchase.” To this end, Facebook will count all the purchase events that the Facebook Pixel has captured on the website and can be assigned to the advertisement and set them in relation to the total expenditure, i.e. calculate the average cost per website purchase.

CPM (Cost per Mile)

To find out the average cost per 1000 impressions, calculate the cost per mille (or counts per mille). It is a very general size with rather low significance. In the Facebook advertising account, the calculation is done automatically. If you want to perform the calculation yourself, the CPM can be calculated with the following formula:

(Total Cost of Ad / Total Impressions) x1000

CTR (Click-Through Rate)

The click-through rate measures the effectiveness of the ad. Calculated here is the ratio of clicks to the total number of impressions. The higher the value, the better. The higher the number, the more people have, in percentage terms, clicked on the ad.

PU / PUR (Purchase)

If a standard event for the purchase of products or services is integrated on the website, the Facebook pixel can count the actions. This metric is used to capture website purchases.

TKP (thousand-contact price)

The thousand-contact price indicates the amount that must be used in an advertising campaign to reach 1,000 people. The metric is also known as CPM (Cost per Mille).

ROAS (Return on Ad Spend) for website purchases

The Return on Ad Spend is a measure that rates whether and how an ad on Facebook pays off. The measure’s value here is based on the value of all conversions that were tracked by the Facebook pixel and could be attributed to the ad. The ROAS is calculated by dividing the value of the conversions by the total amount spent. If the value is 1, the value of the conversions equals the total spend. The goal here should be to achieve a value above 1.

VC (View Content)

VC stands for View Content and behind it lies the key indicator “Content Views on Website”. Only values are recorded here if a Facebook pixel and the standard “show content” event are implemented on the website. If so, the number of content views is counted. If you put this number in relation to the total costs you get the average cost per content call on the website.

VV (Video Views)

On Facebook, the video views are measured differently. On the one hand, the time is measured and recorded how many people viewed the video for 2, 3, 10 or 30 seconds, and on the other hand, the video playback is determined in percent. It counts the number of people watching a video at 25%, 50%, 75%, 95% or 100%. The second key figure also contains the persons who jumped to this point. This means that if a person calls a video and then jumps to the end, that’s 100% video playback.

WC (Website Conversion)

Conversions are defined as certain actions that a visitor to the website refers to. For example, signing up for a webinar, buying a product or something similar. In order to be able to find out, in addition to the link clicks, how often the desired action (conversion) has been carried out for advertisements, the Facebook pixel must be integrated on the page. Additionally, if events or custom conversions are implemented on the site, website conversions (WC) will be counted as soon as Facebook Pixel captures those events or conversions that can be attributed to the ads.

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About the author

Vikram

Vikram is a Digital Media Strategy Consultant who helps small business owners grow their
business. He is passionate about blogging, digital marketing, and emerging technologies.

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