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In this blog post we have explained some of the most used terms in Facebook Marketing & advertisement to help you understand them better and to make sure you should not feel them as jargon while working with Facebook ads. 

Organic Reach: Organic Reach is the number of unique individuals (Facebook users) who see a specific post from a page on their News Feeds, or by directly visiting a Page.

Must Know Terms of Facebook advertisement & marketing

 

Paid Reach: This is the number of unique individuals (Facebook users) who see a specific post from a page through a paid source like a Facebook Ad or Promoted Post.

Must Know Terms of Facebook advertisement & marketing

 

Boost Post: Boost Post is a quick way to promote posts on your page. Boosted posts appear higher in News Feed so there’s a better chance that your audience will see them. You can boost any post you create on your Page, including status updates, photos, videos, and offers. The cost to boost a post depends on how many people you want to reach. In the above screenshot, we got 825 paid reach due to boost post (one way of Facebook paid promotion).

 

Impression: Another must know term in Facebook marketing & advertisement is “Impression”. It  is the number of times a post from your Page is displayed to a particular Facebook user, whether the post is clicked or not. Users may see a post multiple times which is calculated as impressions of the same post. For example, someone might see a page update in News Feed once, and then for a second time if their friend shares it. Or if the same user visits the page, they might see the post again.
Example: If you get reach as 1000 & impression as 1450 in the insights report, it implies that your post is seen 1.45 times by an unique Facebook user.
Engagement: Very frequently used term in Facebook marketing & advertisement. This is the total number of reactions, comments & shares that one gets on a page post. And can classify them as organic engagement and paid engagement based on how one gets the engagement on the posts. Engagement = Post reactions ( Like, Love, Haha, Wow, Sad, and Angry) + Post comments + Post shares
Must Know Terms of Facebook advertisement & marketing
Here, Engagement = 51 reactions + 1 comment + 2 shares = 54
Page Views: The number of times that people hovered over your Page name or profile picture to see a preview of your Page content.
Must Know Terms of Facebook advertisement & marketing
Daily Budget: The daily budget is the amount you indicated you are willing to spend on a specific ad set per day. Each ad set will have its own separate budget, so keep this in mind if you have more than one active ad set in your account.
Lifetime Budget: A lifetime budget lets you set an amount to spend over the lifetime of an ad set. Facebook’s system will automatically try to evenly spread the amount you spend across the period of time that you’ve selected.
CPM: Cost per 1,000 impression: The average cost to get 1,000 impression (ad views) is referred as CPM (Cost Per Milli, M – 1000 in roman symbol) CPM measures the total amount spent on an ad campaign, divided by impressions, multiplied by 1,000. Ex.: If impression is 2300, and amount spent is Rs. 200, then CPM = (200 ÷2300) × 1000 = ~87. So you need to spend Rs. 87 to get 1000 impressions.
Must Know Terms of Facebook advertisement & marketing
Formula to calculate CPM
Frequency: In Facebook marketing & advertisement Frequency term is used very often. The average number of times that each person see your ad is termed as Frequency. It helps to build awareness and recall by showing your message to people in your target audience multiple times. Frequency may average 1 to 2 per ad set or may be much higher, depending on your budget, audience size and schedule. If frequency is 2, it implies that each person have seen your ad twice. And please note that your ad will be charged based on impression and not on number of people reach.
Must Know Terms of Facebook advertisement & marketing
Click Through Rate (CTR): You get CTR by dividing number of clicks with impression (not to be mistaken by reach). If you get 23 clicks with an impression of 700, then the CTR is 0.0328. This implies that, out of 100 ad views around 3.2 people are clicking on it. With click through rate (CTR) data you can decide how much interested your target audience are on your ad? Greater the CTR, higher is the chances of getting good results.

Must Know Terms of Facebook advertisement & marketing

 

Above are the basic formulas to get metrics of commonly used terms in Facebook Marketing & advertisement

Audience: An audience is a group of people who can potentially see your Facebook ads. When choosing a target audience for your ad set, you can either create a new audience or use a saved audience.

 

Audience Network: This is a network of mobile app and mobile web publishers who’ve been approved by Facebook to show ads in their apps.

 

Campaign Spending Limit: A campaign spending limit allows you to set a maximum amount of money to be spent on a campaign. Your campaign stops running when it reaches your campaign spending limit.

 

 

We hope the blog post helped you to understand the terms in Facebook marketing & advertisement in a better way. We keep this blog updated as & when with new terms.

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