Facebook Ads – Terms you must know

Following discussions on Twitter or Reddit can be quite confusing if you don’t know all the acronyms people are using. And how can you expect to implement strategy, when you don’t know what people are talking about? Here I will break down the most used terms, you need to understand to follow any discussion up on Facebook ads:

PPC – Pay per click, any payed ad format like Google or Facebook Ads
CPM – Cost per Million, cost per million views of your ad
CTR – Click through rate, percentage of how many of the people viewing the ad click on it
CPC – Cost per click, how much you pay for one click / per one visitor to your ad
CTA – Call to action – the words you use in your ad / landing page to tell your customer what to do like “Buy now” or “Call now”
ABO – Adset Budget Optimization: Tell Facebook to assign most money to the best performing Ad inside an Ad-set
CBO – Campaign Budget Optimization: Tell Facebook to assign most money to the best performing Ad-set within a campaign
LLA/LAL/LL: – Look alike Audience: Audience type with defined characteristics
ATC – Add to cart: Customer group that added items to cart. Used for example as base of a Lookalike Audience
AAM – Auto-advanced matching
AEM – Aggregated Events Manager
AOV – Average order value (purchase conversion value ÷ # of purchases)
ATT – Apple Tracking Transparency (think iOS14+)
CAPI – Conversion API (Not sure about CAPI? Check out this blog)
CBO – Campaign Budget Optimization
CPA – (also called CAC): Cost Per Acquisition (or Customer Acquisition Cost)
CPC – Cost per click (amount spent ÷ number of clicks)
CPP/CPA/CAC: Cost per purchase, cost per acquisition, customer acquisition cost (all the same metric)
DPA, DCT – Dynamic product ad/Dynamic creative testing
DTC – Direct to consumer
FBSCA – Facebook Sales Channel App (In Shopify)
FTIR – First-time impression ratio
GA – Google Analytics
GDS – Google Data Studio
GTM – Google Tag Manager
LP – Landing Page
LPV – Landing Page View
LTV – Lifetime Value
MER – Marketing Efficiency Ratio (also called Media Efficiency Ratio/Rating)
PUR – Purchase
ROAS: Return on ad spend (amount spent ÷ purchase conversion value). Can be viewed as a percentage or a number
Thumbstop Ratio: The percentage of total impressions on a video ad that users stopped to view at least 3 seconds of (3-second video plays ÷ impressions)
TOS – Time on site
UGC – User-generated content
VC – View Content
WCA – Website custom audience

Now that you know the most important acronyms you are able to discuss Facebook Ads like a pro – or more importantly – to use what the pros are talking about in your own strategies.

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