It’s time to level up your Facebook advertising game.
In the digital age we live in, there is no excuse for not knowing your CPCs from your ABCs. As Facebook continues to dominate the global market, Facebook Ads are undeniably the powerhouse of the advertising world.
When you’re first dipping your toe into the limitless realm of advertising on Facebook it can seem a little overwhelming with the number of acronyms and fancy jargon. But if you’re going to start making successful (and profitable) ads on Facebook, then you’re going to need to know all the ins-and-outs of the industry.
We have decided to curate the essential FB ad terms that you absolutely need to know for your advertising. Every industry and specialty has its own unique terminology and specific language, and if you don’t have an understanding of these nuances then it can feel a little like you’re on the outside looking in.
Become a pro and dominate the Facebook advertising world with these crucial key phrases, terms, and tools!
As the name suggests, Facebook’s Business Manager helps you to organize and manage your business. It houses everything for you: your pages, your ad accounts, all your stuff.
Think of the Business Manager as an office for your company. It’s where you will work from, it’s where you create your ads, and where you monitor metrics.
Rather than creating a business page using your personal account, Business Manager allows you to create a business account that keeps your business and personal life separate (on Facebook, anyway). While you will need a personal account to log into the Business Manager, the two aren’t completely intermingled so your others won’t see your personal photos or messages.
Removing this personal element is incredibly important if you have more than one ad account, or if you plan to have co-workers with access, or other people coming in to work on your account. It’s just a more secure way of managing things.
If you go back to the office building analogy, imagine every room in your office requires certain access passes with different security levels. Staff can come and go using their access pass depending on their level clearance, and you can easily take someone’s pass away if you don’t want them coming into the building anymore.
Business Manager also allows for different levels of access for users. Got a staff member working on advertising but only want them to see one specific ad? Easy, limit their access. If you have a consultant coming on board and you want them to have full access, you can select the ‘assign partners’ option, click ‘Business ID’, and enter their own Business Manager ID.
If someone leaves the company or you decide to switch agencies, it’s as simple as revoking their access.
This is where you can examine the actions that Facebook is recording to get further data. This data helps you to optimize, scale, plan, and make decisions on what you want to do with your advertising.
Your ad account will give all sorts of data on user behavior, but all this data can essentially be divided into two groups: unique metrics and general metrics. When it comes to accurate reporting, the rule of thumb is to always examine the unique metrics rather than the general metrics.
The reason for this is that the unique metrics count how many individuals accomplished this metric. Let’s say you have 3 people purchasing one item from your e-commerce store, you will see 3 purchases and you will see 3 unique purchases.
If just one person makes 3 separate purchases, you will see 3 purchases but 1 unique purchase.
If you already feel a little confused, don’t stress. Just understand that “unique” metrics are the ones to look out for.
READ MORE: How to Build a Profitable Marketing Strategy
The Facebook Pixel
Also known as just the pixel, this handy analytics tool allows you to measure how effective your advertising is by understanding the actions people have taken or will take on your website.
This is the brain of your business, it’s the reason you are able to optimize. It allows you to measure user activity across all devices and allows you to build audiences that you can remarket to. It allows you to track performance and calculate the ROI (return of investment) of your campaigns.
Facebook Pixel Helper is a great little Chrome extension that will help you to debug the implementation of the pixel.
We could write a whole library on what a sales funnel is and how it relates to your business (in fact, we have! Check out our other articles for a more in-depth dive on using sales funnels), but for Facebook ads and terminology, we have these terms for you:
A sales funnel is a step-by-step process that enables you to draw a prospective customer closer to your sales offer. Let’s have a look at the customer journey and how it lives in a holistic view:
- Prospecting: This is where all your first interactions with consumers will be.
- Re-engagement: This is where the consumers who are just learning about you are. Maybe they haven’t bought anything yet, but they are getting closer too! These people might follow your social media posts and profiles but haven’t visited your website yet.
- Decision/Bottom of Funnel: These people have visited your website. This is where your hottest leads/customers are just waiting for you to give them the final budget.
Understanding funnels and the lead’s journey will help you to understand exactly what’s happening behind each metric.
Let’s have a look at the different metrics that are being recorded in your ad manager.
“Clicks” is a measurement of the number of clicks on your ads. Clicks cover the following links:
- Link clicks – (these include Facebook and outbound, more on that later)
- Clicks to Business Page profiles or profile pictures
- Post reactions
- Clicks to expand media
- Playing videos
Basically, anytime someone hovers their mouse over your ad and then clicks, it’s a “click”.
There’s often a little confusion between link clicks and outbound clicks. Outbound clicks measure the number of clicks that take people away from Facebook-owned websites, for example, a link on your Facebook page to your personal website. Whereas, the link clicks metric shows both clicks to destinations on or off Facebook-owned websites.
Link clicks help to measure the amount of interest that your ad has generated with your audience. A lot of digital advertisers consider the click-through rate as a measure of success for an online advertising campaign.
This metric assesses link clicks in the text of your ad, CTAs, media, or your attached links to external or internal destinations. It doesn’t include clicks on content or links in the comments section of a post.
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As discussed before, outbound clicks measure the number of clicks that take people away from Facebook-owned websites completely.
Examples of Outbound Clicks include clicks on a link or CTAs within an ad that direct people directly from their Facebook News Feed to an external page. If you’re using a full-screen experience as your ad format, outbound clicks will most likely provide more insight into the performance of your ads rather than link clicks.
Sometimes, clicks can be reported as both a link click and an outbound click which can cause a bit of confusion when you’re looking at your metrics. For example, if you’re using a single image ad to drive traffic to a website along with a CTA button taking people to your website too, Facebook can get a little confused and will both the clicks on the CTA button or image as both a link click and an outbound click. It shouldn’t mess with things too much, but this is something that’s good to know.
Unique Outbound Clicks
An estimated metric of the number of people who performed an outbound click. This metric uses sampled data to count the number of people who clicked, not the number of clicks.
Unique Outbound Click Through Rate (Link) is one of the most important metrics in the game.
This metric tells you the percentage of people who saw your ad, and clicked on an outbound click. This metric is calculated as the number of unique outbound clicks, divided by your reach.
Asset Iteration Testing. This is another isolated dynamic form of testing your newest creative that is more focused on the manual campaign, ad set, and ad build.
Average Order Value. This is where all your money comes from, and refers to the average amount spent per purchase.
Cost of Acquiring a Customer. What is your overall cost to acquire a customer?
Cost Per Acquisition, or Cost Per Result, reveals the average cost per result on your adverts. Your results are objectives that you have set in your ad campaign. CPA or CPR helps you to compare the performance of your different campaigns and see what’s working and what’s not. It’s influenced by a wide variety of factors, from your target audience behaviors, optimization, and even what schedule your ads are on.
Cost Per Click. This is the price you pay for each click on your Facebook ad.
Also known as your cost per 1000 impressions. This is how much Facebook is charging you to deliver your ad for 1000 impressions.
Cost Per Unique Purchase. The estimated average cost of each unique purchase.
DCT / DCO
Dynamic Creative Testing. Facebook’s Introduction to multi-variant or multi-element testing within campaigns.
The landing page that you are marketing and directing everything towards. Understanding destination is extremely important because it’s the combination of your ad, your audience, and your landing page that will give different results.
Your landing page is: where am I driving my leads to? What are they looking at? Where are they going? This is where you are sending your leads after they initiate a click on your ad. These landing pages are different from other pages on your website, like product pages, because they’re tailor-made to complement your Facebook ad. This is your lead’s first impression of your business away from Facebook, so make sure that it not only connects to your ad but that it’s suitable and on-brand.
Lifetime Value. The total value spent across a customer’s life.
Return On Ad Spend. This is an important one. ROAS is the money you receive derived from spending on advertising and tells you how effectively your spending on marketing is. ROAS is based on the value of all conversions recorded by the pixel on your website.
Unique Add To Cart. So, your lead has found a few things they want to buy. This is the holy grail of any business. This is the first step in the checkout process, where your lead has selected “add to cart” on a product or service.
Unique Cost Per Add to Cart
Unique cost per check out initiated, also known as cost per unique checkout initiated. This estimated by taking the total amount spent, and dividing it by unique checkouts initiated.
Unique Cost Per Landing Page View. A metric of how much it’s costing you per a unique view of your landing page.
Unique Initiate Check Out.
Unique Landing Page View. This is the number of consumers who made it to your landing page.
Unique Purchases. This is the estimated number of people who completed at least one purchase. This metric counts people, not actions taken, and it’s calculated based on your use of Facebook’s business tools.
There are hundreds, if not thousands of terms and phrases when it comes to Facebook ads, but these key phrases are the absolute essentials that you should know. Not only will these definitions help you to understand exactly what you’re looking at when you analyze data, but they’ll also help you to communicate with consultants, developers, and other advertising gurus with ease.
What have you always wanted to know about Facebook advertising, but never knew who to ask? Let us know in the comments below, and our Facebook advertising expert will do his best to help you out!
The biggest problem founders and small owners have is that they’re experts in their field and novices in what it really takes to effectively run a business. That’s what usually trips them up, sooner or later.
Don’t let that happen to you. Admit that you don’t know what you don’t know about business, starting with these 15 tips guaranteed to help keep you and your company out of hot water. Some are straightforward, others are counterintuitive, but they’re all true. And some day they’ll save your butt.
Always make sure there is and will be enough cash in the bank. Period. The most common business-failure mode, hands down, is running out of cash. If you know you’ve got a cash flow or liquidity problem coming up, fix it now. You can’t fire bad employees fast enough. You just can’t. Just make sure you know they’re the problem, not you ( see next tip ).
The problem is probably you. When I was a young directeur, my company sent us all to a week of quality training where the most important concept we learned was that percent of all problems are management problems. When things aren’t going well, the first place to look for answers is in the mirror.
Take care of your stars. This goes for every company, big and small. The cost of losing a vedette employee is enormous, yet précurseurs rarely take the time to ensure their top performers are properly motivated, challenged, and compensated. Your people are not your kids, your personal assistants, or your shrink. If you use and abuse them that way, you will come to regret it. Capiche ?
Learn to say ' yes ' and ' no ' a lot. The two most important words business owners and founders have at their disposal are “yes” and “no. ” Learn to say them a lot. And that means being decisive. The most important reason to focus – to be clear on what your company does – is to be clear on all the things it doesn’t do.
It boggles my mind how little most entrepreneurs value their customers when, not only are their feedback and input among the most critical information they will ever learn, but their repeat is the easiest to get. Learn two words : meritocracy and nepotism. The first is how you run an organization – by recognizing, rewarding, and compensating based solely on ability and achievement. The second is how you don’t run an organization – by playing préférés and being biased.
Know when and when not to be transparent. Transparency is as detrimental at some times as it is beneficial at others. There are times to share openly and times to zip it. You need to know when and with whom to do one versus the other. It comes with experience.
Trust your gut. This phrase is often repeated but rarely understood. It means that your own instincts are an extremely valuable decision-making tool. Too often we end up saying in retrospect and with regret, “Damn, I knew that was a bad idea. ” But the key is to know how to access your instincts. Just sit, be quiet, and listen to yourself.
Protect and defend your intellectual property. Most of you don’t know the difference between a copyright, trademark, trade secret, and patent. That’s not acceptable. If you don’t protect and defend your IP, you will lose your only competitive advantage.
Learn to read and write effective agreements. You know the expression “good fences make good neighbors ? ” It’s the same in . The more effective your agreements are, the better your relationships will be.
Far too many entrepreneurs run their like an extension of their personal finances. Bad idea. Very bad idea. Construct the right entity and keep it separate from your personal life. Know your finances inside and out. If you don’t know your revenues, expenses, capital requirements, profits ( gross and net ), debt, cash flow, and effective tax rate – among other things – you’re asking for dysfonctionnement. Big dysfonctionnement.
You don’t know what you don’t know. Humility is a powerful trait for précurseurs, and that goes for new business owners, veteran CEOs of Fortune 500 companies, and everyone in between. More times than not, you will come to regret thinking you knew all the answers. Behind every failed company are dysfunctional, delusional, or incompetent business précurseurs. The irony is, none of them had the slightest idea that was true at the time. Even sadder, most of them still don’t. Don’t end up like one of them.
For every success you have in growing your market share, another business or other businesses will inevitably lose ground. Here are 11 quick and easy tips to gain a competitive advantage over your rivals and insulate yourself from the threat of new entrants in the market.
Of course, we all want to spark business growth and increase revenue. But the way you do this in a sustainable way is to focus instead on the building of a loyal database of avid fans. Content digital, paired with optimized website forms and éclairé mail automation follow-up is critical to success. This approach builds trust by giving away free value before asking for someone’s hard-earned money. Not an expert in creating optimized lead generation pages on a website ? No worries, use a trusted tool like Leadpages to make it happen.
Like it or not, folks out there aren’t searching for your brand, they’re just looking to solve a problem or find a particular type of product ( unless you run Starbucks or Adidas ! ) Don’t list all the benefits your product brings. Focus on the solutions. Explain to the customer in simple, straightforward terms how or why your product can help them or assist in the attainment of their goals. Consider FedEx’s iconic slogan : When it absolutely, positively has to be there overnight. This was a clear example of addressing widely-spread anxiety about the reliability of delivery services. Run through some market research to profile your target customer. How does your product or service – and your delivery and and price point – solve other people’s problems and make their lives easier or more pleasurable ?
Dropping prices doesn’t necessarily raise sales, for instance ( though it will definitely squeeze margins ). If you place yourself as a de haute gamme brand, then your customers aren’t necessarily value-driven in the first place, and cutting prices could even tarnish your brand. Consider this case study from Robert Cialdini’s seminal book ‘Influence : The Psychology of Persuasion’ : a jeweller sold out of turquoise jewelry after accidentally doubling, instead of halving, the price. The inflated price tag lent the product an unwarranted cachet ! If you are a premium brand, there are ways to optimize your pricing without lowering prices. For example, offer the quality-conscious customer an ‘exclusive’ benefit that your rivals do not or cannot provide. If you are at the value-driven end of the market, on the other hand, don’t assume slashing prices means incurring a loss. Low pricing can help you rapidly onboard a heap of new customers who may also buy other items in your shop and return again. Context also counts for a lot with pricing. The best way to sell a $5, 000 watch, for instance, could be by putting it next to a $10, 000 watch. Think strategically when it comes to deciding any price point.
Yes, it sounds obvious, but it’s so very important ! Whether consciously or not, people are more likely to buy a product if they like the sales assistant who’s attending to them. While the employee’s personality obviously has no bearing on the price or your product’s ability to serve their needs is irrelevant. Friendly customer-facing équipe will always attract more sales. Be rigorous in hiring people who are genuinely cheerful, friendly and outgoing. Make sure your training program teaches them to adopt a consistently friendly approach that puts customers at ease and feel like a priority.
Say you’re a bricks-and-mortar store and you’re getting a rush of customers as closing time approaches… why not close up an hour later ? While this may cause disgruntlement among équipe, solve this issue by getting creative with rosters. Monitor customer footfall throughout the day and week to identify your busiest periods, and staff people accordingly. You can also reduce headcount during quieter periods to offset the higher costs and longer sérieux hours created by your extended opening hours. It’s a win-win !
Even in the web age, some customers will always prefer to contact you by phone rather than fax or Facebook. While many online companies with tight margins eschew manned phone lines altogether, it’s worth giving customers the option of having a voice-to-voice conversation with your brand. By all means, slash the time and cost spent responding to queries by funnelling customers to standardized, pre-existing responses on your webpage ( i. e., FAQs ). But if their query isn’t listed in the drop-down menu of FAQs, then don’t make them click more than once more to find your phone number. Put it front and center on your web page, particularly if you’re a retail offering. ‘Live chat’ bots are an inexpensive way of offering real-time communication, too.
Why not give your happy customers a voucher with their purchase to redeem on your products and services ? If they love what you do already, they’re only going to love you more for this. It’s good for you because : It guarantees they will return to your store again. People hate to waste freebies ! When they return to your store to redeem their voucher, they may buy other items, too. If your business operates online, then the freebie could be strategically timed to coincide with a special sale. Oh, and guess what ? Chances are customers who have received vouchers or freebies won’t stay quiet about it either, so you could enjoy some positive buzz on social media.
Local businesses can arguably connect with their unique communities with much greater authority than any global chain. A local retailer, hair mobilier or gardening company can sponsor a kid’s sports team and offer deep discounts for OAPs at the same time. Some cinemas feature special ‘sensory’ screenings where parents can bring kids with autism ( who would normally be overwhelmed by busy, noisy environments ) to enjoy a movie in a relaxed, stress-free atmosphere. This reflects well on them and also guarantees them a loyal customer niche. Whatever you choose to do to support your community, make sure it authentically fits with your brand offering and journey to date.
Social media is a great medium through which to build a solid relationship with customers – just don’t forget what ‘social’ actually means ! Soul-less corporate shop-talk won’t work on Twitter. Try to give your brand some ‘personality’ when you write updates or posts. This can bring its own risks, évidemment. But if you get it right, the benefits can be immense. Develop a tone of voice that aligns well with your brand identity. Seek to inform, help, entertain or amuse. And most importantly – given the dire PR consequences – don’t patronize, try too hard to be funny, or tweet after a few alcoholic drinks !
Sometimes it’s better to be a master of one discipline than a jack of all trades. Admittedly, multiple revenue streams do spread your risk : if one falters, others can take up the slack. Nevertheless, consumers often associate ‘specialists’ with higher quality products or services than generalists. And with good reason, too : specialists typically invest all their resources into perfecting a solo product or service. So what should you specialize in ? tera state the obvious, it should be something in which you excel. You could also pick something with rising or recession-proof demand which is resilient to technological change in which you possess a competitive advantage over your rivals or where there’s an obvious gap in your local market. Own it, whatever you do.
Don’t ever get too satisfied with your business. You can always improve – and improve you must ! Don’t get me wrong : without the odd moment of smug satisfaction, what’s the point ? Do relish in the successful launch of a game-changing product or take pleasure in positive customer feedback. But don’t let your customers hear you banging on about it time after time ! Be alert to the common element that has led to the downfall of countless hitherto thriving brands : complacency. Imaginative, nimble and innovative start-ups often do better than big market leaders that just got lazy. You may be the disruptive innovator today, but tomorrow you could be the complacent market leader with a tired business model. So try to be humble and always strive to improve. Seek inspiration from other créateurs d'entreprise, from books and from seminars. The moment you think ‘mission accomplished’ is the same moment you become vulnerable to being usurped.
There are lots of ways in which you can improve your business, and not all of them are complicated ! Try out the above tips or integrate them with your existing strategies, and let me know how you go in the comments below. Guest Author : Faye Ferris is responsible for the day-to-day management of the Dynamis APAC Pty Ltd offices in Sydney. She develops the DYNAMIS durable of brands and their expansion into the Asia Pacific region as well as BusinessesForSale. com, FranchiseSales. com and PropertySales. com. If you have an interest in partnering up with Faye or advertising on any of these websites in the APAC territories, please do not hesitate to contact her on faye@businessesforsale. com.