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Some Useful Facebook Ads Terminology

When reading about Facebook ads, it can sometimes feel like reading another language. This is a form of ‘PPC Ads’ and that’s a huge subject when it comes to online marketing. Over time, countless acronyms and jargon terms have emerged and this can make it all a little hard to keep track of. But read on and you’ll discover a handy guide to all of the most common terms and hopefully this will make it a little easier for you to navigate other articles in future.


To begin with, what is PPC? Simply, this is ‘Pay Per Click’ and means that you’re only paying once an advert gets clicked. If your ad is ignored, then you don’t pay a penny.


CPC stands for ‘Cost Per Click’. The term can be used interchangeably with PPC, or it can be used to describe the actual amount that you’re paying for each individual click.


While Cost Per Click tells you how much you pay for each click, CPM tells you how much you are paying for your ads to get seen. Specifically, this means ‘Cost Per Impression’ but actually refers to the amount for every 1,000 impressions. You can choose to pay on a CPM basis rather than CPC on Facebook but it can also be a useful metric that shows the average amount you’re paying for your ads taking into account impressions and CTR.


An impression is whenever your ad is shown on a page.


CTR is ‘click through rate’ and tells you how often your ads are getting clicked. Often, the higher your CTR the better – but only if those clicks are later leading to sales!


CPA is another method for pricing ads. This means ‘Cost Per Action’, which in turn means that you’re only paying each time someone takes a kind of action on your site.


An action can be anything from buying a product, to liking a Facebook page, to signing up for a mailing list. A ‘Call to Action’ is a button that encourages said action.


Remarketing is a type of marketing where you’re targeting people who have previously been to your website.


Targeting means that you’re approaching particular demographics for your ads and trying to avoid people who might be unlikely to buy from you.

Maximum Bid

This is the most you are willing to pay for each click on an advert.

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