I. Basic Concepts
Spoiler:
- BM (Business Manager): The ad account management platform, allowing you to manage multiple ad accounts, pages, pixels, etc.
- AD Account: Sub-account within BM, used to actually run ads.
- Page: The page where ads are displayed. All ads must belong to a page.
- Pixel: Code provided by Facebook, installed on your website to track user behavior and improve ad performance.
- Event: User actions collected by the Pixel, such as “add to cart,” “purchase,” “complete registration,” etc.
II. Ad Structure
Spoiler:
- Campaign: The highest level, sets the ad objective, such as conversion, traffic, engagement, etc.
- Ad Set: Defines targeting, budget, placement, and other parameters.
- Ad: The actual creative, including images, videos, copy, etc.
III. Data Metrics
Spoiler:
- CTR (Click-Through Rate) = Clicks / Impressions.
- CPM (Cost Per Mille) = Cost for 1,000 impressions.
- CPC (Cost Per Click) = Total spend / Clicks.
- CVR (Conversion Rate) = Conversions / Clicks.
- ROAS (Return on Ad Spend) = Revenue from ads / Ad spend.
- Frequency: Average number of times an individual user sees the ad.
- Watch Time: Average length users watch your video ads.
IV. Ad Delivery Terms
Spoiler:
- Scaling: Increasing budget or expanding audience to increase ad reach.
- Killing: Stopping underperforming ads to avoid wasting budget.
- Lookalike (LAL Audience): New potential user groups created based on existing customer data.
- Cold Audience: Users who have never interacted with your ads.
- Retargeting: Showing ads again to users who saw but didn’t purchase, improving conversion rates.
- Creative: Ad materials such as images, videos, copy, etc.
- Angle: The creative direction of the ad, like “low price promotion,” “scarcity,” “user pain points,” etc.
- Hook: The first phrase or image that grabs users’ attention and affects ad performance.
V. Policy Violations & Bans
Spoiler:
- Policy Violation: Breaking Facebook’s ad policies, which may result in bans.
- Account Ban: Ad account being banned due to violations or risk control.
- Appeal: Submitting an appeal after a ban in an attempt to lift it.
- Warm-up: Running low-risk ads on new accounts for a period to reduce the risk of bans.
- Shadow Ban: The account is not officially banned, but ad performance drops drastically.
- Soft Ban: Delivery is limited, such as not passing review or facing budget caps.
VI. Optimization-Related Terms
Spoiler:
- AB Test: Testing different creatives, audiences, or delivery strategies to find the optimal solution.
- CBO (Campaign Budget Optimization): Optimizing campaign budget; Facebook automatically allocates budget across ad sets.
- ABO (Ad Set Budget Optimization): Each ad set has its own separate budget.
- Dayparting: Showing ads at specific times of day.
- Ad Fatigue: Users tire of your ad after too many exposures, decreasing effectiveness.
- Creative Refresh: Regularly updating ad materials to avoid ad fatigue.
- Delayed Attribution: User completes a conversion hours or days after clicking the ad.
VII. Audience & Targeting Terms
Spoiler:
- TOF (Top of Funnel): Cold users seeing the ad for the first time.
- MOF (Middle of Funnel): Users who have shown interest but haven’t converted.
- BOF (Bottom of Funnel): High-intent users, like those who added to cart but didn’t pay.
- Custom Audience (CA): Highly targeted audiences built from pixel data, customer lists, or engagement data.
- Interest Targeting: Targeting users based on interests or behaviors, such as “fitness,” “fashion,” etc.
- Broad Targeting: No specific interests or behaviors set, allowing Facebook’s AI to find the best audience.
VIII. Budget & Bidding
Spoiler:
- Bid Cap: Manually set a bidding limit.
- Cost Cap: Keep conversion costs below a set amount.
- Lowest Cost: Let Facebook obtain the maximum conversions at the lowest cost.
- ROAS Bidding: Setting a target return on ad spend.
- Daily Budget: Fixed ad budget per day.
- Lifetime Budget: Total ad set budget, with Facebook automatically adjusting daily spend.
IX. Ad Creative & Testing
Spoiler:
- Thumbnail Test: Testing video ad thumbnails.
- CTR Test: Specifically testing ad click-through rates.
- Hook Rate: 3-second video watch rate.
- Carousel Ad: Ad format letting you showcase multiple images or videos in a carousel.
- UGC (User-Generated Content): Ads produced from a user perspective.
- Native Ad: Ads that look like regular social posts, lowering user resistance.
X. Ad Strategies
Spoiler:
- Sniper Strategy: Precisely targeting high-value audiences.
- Mass Broad: No specific interests set, relying entirely on Facebook’s AI.
- Hyper Testing: Testing a large number of creatives or audiences at once.
- BO Strategy: Pushing a single ad hard with a high budget.
- Retargeting Funnel: Showing different ads based on user behavior.
- Vertical Scaling: Increasing ad budget while maintaining the same settings.
- Horizontal Scaling: Duplicating ad sets to test different audiences, creatives, or markets.
XI. AEO & VO Explained
Spoiler:
- AEO (App Event Optimization):
- For app promotion, optimizing for installs, add to cart, purchase, etc.
- Suitable for gaming, e-commerce, education, and similar industries.
- VO (Value Optimization):
- Suitable for e-commerce, high average order value products.
- Goal is to find users willing to spend more, improving ROI.
- Requires at least 100 purchase data points so Facebook has enough data for optimization.