Facebook advertising offers powerful tools for brand awareness, audience targeting, and lead generation. However, understanding key terms is essential for optimizing campaigns. This guide simplifies 25 critical Facebook advertising terms every small business owner should know.
Table of Contents
Toggle1. Add to Cart
Tracks how often users add products to their cart after clicking an ad.
2. Account ID
A unique identifier for a Facebook Ads account.
3. Audience Network
A network of apps and websites that display Facebook ads outside the platform.
4. Average CPC (Cost Per Click)
The average cost of each ad click is calculated by dividing total spend by clicks.
5. Average Order Value (AOV)
The average revenue per order, found by dividing total sales by order count.
6. Bid Strategies
Facebook’s system for placing bids on ads. Options include lowest cost, bid cap, and target cost.
7. Boosted Post
A paid promotion that increases a post’s visibility without full ad customization.
8. Campaign Budget Optimization (CBO)
Facebook’s tool for automatically distributing budget across ad sets for better performance.
9. Click-Through Rate (CTR)
The percentage of users who click an ad after seeing it. Higher CTR means better engagement.
10. Conversion Rate
The percentage of ad clicks leading to sales or other desired actions.
11. Conversion Rate Optimization (CRO)
The process of refining ads and landing pages to boost conversions.
12. Cost Per Thousand Impressions (CPM)
The cost of 1,000 ad impressions, used to measure ad reach efficiency.
13. Cost Per Action (CPA)
The average cost per user action, calculated by dividing total ad spend by completed actions.
14. Cost Per Purchase (CPP)
The average cost per sale, determined by dividing ad spend by total purchases.
15. Customer Lifetime Value (CLTV)
The projected total revenue from a single customer throughout their relationship with a business.
16. Dynamic Product Ads
Automated ads that retarget users with products they viewed on a business’s site or app.
17. Engagement Custom Audiences
A custom audience created from users who interacted with a brand’s Facebook page or ads.
18. Event Responses
The number of people who mark themselves as interested or attending an event ad.
19. Frequency
The average number of times a single user sees an ad. High frequency can cause ad fatigue.
20. Initiate Checkout
Tracks the number of users who start the checkout process after seeing an ad.
21. Lookalike Audience
A new audience Facebook creates based on similarities to an existing custom audience.
22. Middle of Funnel (MOFU)
The midpoint of the sales funnel, where potential customers consider a product or service.
23. One-Click Upsell
A single-click option that lets buyers add more products before checkout.
24. One-Time Offer (OTO)
A limited-time deal encouraging buyers to add products before completing their order.
25. Page Engagement
A report tracking likes, comments, shares, and clicks on a Facebook business page.
Conclusion
Facebook advertising provides tools for targeting, engagement, and conversions. However, businesses must understand key ad terms to maximize results. Mastering these 25 terms simplifies campaign management, improves decision-making, and enhances return on investment (ROI).
Want to grow your audience and drive results with Facebook ads? Contact us today to explore our affordable Facebook ad service.
Last Updated on April 29, 2025
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At MantraM we strongly believe that every business or brand is unique and has its own blueprint. Just like we all have a unique purpose, so does every business. We specialize in Marketing, Social Media, & Facebook Ads.
