Advertising Fundamentals

Advertising Term Glossary

Advertising Terms:

A/B Testing or Split Testing - Testing different versions of ads or audiences to see what works best and improve future campaigns.

Break-even Point - The point at which the total value of costs is equal to the total value of revenue.

Budget Optimization - The process of shifting budget away from low-performing to high-performing campaign attributes.

Clicks - The total number of clicks an ad has received.

Conversion - An action completed after seeing an ad.

Core Audience - Target audience using Facebook data (i.e., interests, behaviors, demographics, etc.).

Cost Per Purchase - The cost at which your ads convert a purchase.

CPM - The average cost for 1,000 impressions.

Creative - Pictures, videos or text contained within the ad.

Custom Audience - Target audience using data from your CMS, website, or other sources to target Facebook ads to people you already know.

Engagement - All actions that people take involving your ads. Engagements can include actions such as reacting to, commenting on, or sharing the ad; viewing a photo or video; or clicking a link.

Frequency - The average number of times each person sees your ad.

Goal - What you'd like your campaign to optimize for and see more of.

Impressions - The number of times your ads are on screen.

Lookalike Audience - An audience of people with similar characteristics to a data source that you define, such as past purchasers or your email list.

Objective - What you want people to do when they see your ads.

Pixel - A snippet of code placed on a website designed to record conversions from Facebook ads and build targeted audiences for future ads.

Reach - The number of people who see your ads at least once. Reach is different from impressions, which may include multiple views of your ads by the same people.

Relevancy Score - A rating from 1 to 10 that estimates how well your target audience is responding to your ad. This score is shown after your ad receives more than 500 impressions.

Retargeting Audience - Target audience of people who've already expressed interest in your product by visiting your website or checking out a product.

Return on Ad Spend - The total purchases conversion value divided by total amount spent.

Target Audience - An audience of people you'd like to advertise to, usually based on your ideal customer.


What is Conversion Tracking?
How to Target Your Audience
Advertising Term Glossary
Why You Should Advertise
What is A/B Testing?
Why Advertising Is an Investment