Understand Key Advertising Terms that you rarely know
Before you start to analyze your advertising reports it's important that you understand the terms and acronyms that you're going to see there in this video we're going to do an overview of the six most important ones to know and i'll also show you where you can see a glossary of all of the terms used by facebook now clicks are the total number of click actions in your ad depending on what you're promoting this can include clicks to your website page likes event responses or app installs click through rate or ctr refers to the number of clicks you receive divided by the number of times an ad was shown on facebook.
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And the higher this number the better your ad is performing because it means that more people who see your ad really click through next up we have cpm or cost per 1000 impressions and this is the average cost that you've paid to have 1000 impressions of your ad an impression is anytime an advertisement is shown on the screen and that's an important clarification to make an impression doesn't guarantee that the user saw it just that the ad appeared on their page next up we have average cpc or cost per click for these ads this is calculated by the amount spent divided by the number of clicks received so even if you're paying for an ad on a cpm basis you'll also see the cpc calculated and typically you're aiming for the lowest cpc that still returns the results that you want next up we have frequency and this refers to the average number of times each person received an impression of your advertisement advertisers often want to set a limit on this and to cap this at a certain rate to re-prevent ad fatigue or people just seeing your ad over and over again and the last term you'll see often is reach and this refers to the number of unique people.
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Who saw your ad so for example if 100 people saw your ad then your reach would be equal to 100 and if you had a reach of 100 with a frequency of 4 well that would indicate that 100 people saw you're out four times which means you would have 400 impressions for that campaign these six terms that you have learned will help you determine which ads are performing well and which ones need some refinement and for a full list of definitions and terms used by facebook you can check out the ad glossary as shown on screen i'll put a link to it in the resources section of this video as well.
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