Let’s explore the most common Facebook terms with Wenovate Global, helping you create optimized and effective Facebook campaigns.

Facebook Ads Bidding Terms

1. Bid

A bid is the action of setting a bid price for your Facebook ad. It’s the highest price you’re willing to pay for 1,000 ad impressions, one interaction, or one conversion generated from the ad. 

2. Price
Price refers to the actual amount you pay to Facebook based on each interaction, 1,000 impressions, or each conversion. Facebook always tries to help advertisers run campaigns at the most optimal price. Typically, the price will be lower than the actual bid.

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Facebook Ads Cost Terms

1. CPA

CPA (Cost Per Action) is an advertising method where you pay for each qualified action or conversion performed. CPA is calculated by dividing the total advertising cost by the number of actions (or conversions) achieved. Actions can include completing a registration form, attending an event, or downloading software after clicking on a banner ad on an affiliate site. The advantage of CPA (Cost Per Action) is that advertisers only have to pay when a specific action, such as registration, event participation, or app download, is successfully performed as desired. This helps to optimize advertising costs and ensures that you only pay for actual results.

However, the drawback of CPA is that it may miss opportunities to engage with users during their customer journey. Since you only pay for specific actions, you may not gather data on earlier stages of the user’s journey.

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**2. CPM**

CPM (Cost Per Mille)is an advertising method where the fee is based on the number of ad impressions, with CPM calculated using the formula: CPM = (Cost x 1000) / number of ad impressions.

CPM is often used to increase brand awareness and enhance the visibility of ads. Advertisers pay a fixed amount for every 1,000 ad impressions delivered to customers.

The primary goal in CPM campaigns is to raise brand recognition, so interaction is not the main criterion. Instead, the number of impressions is the key objective, as displaying the ad to as many customers as possible helps boost brand awareness.

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3. CPI

**CPI (Cost Per Install)** is the cost per app installation. It’s a subset of CPA with the goal of increasing app installations.

The difference between CPA and CPI is the main reason why many advertisers choose to use CPI for app campaigns.
*Reasons to use CPI instead of CPA:
– Cost only occurs upon installation: With CPA, you pay each time a user takes a specific action, such as registering or purchasing, regardless of whether that action is successful. In contrast, CPI only requires you to pay when an app is successfully installed. If a user clicks on the ad but doesn’t install the app, you won’t incur any costs.
– Focus on target audience: CPI helps you focus on users who are genuinely interested in downloading the app. The system will optimize the campaign to target only those who are more likely to install the app, helping you save costs and improve advertising effectiveness.
– Effective budget management: With CPI, you can easily control costs since you only pay for actual installations. This ensures that your advertising budget is used more effectively, especially when your campaign is focused on acquiring new users for the app.
*1. Ad Fraud*

This is a fraudulent act in Facebook Ads, where you run ads but intentionally avoid paying for them.

For each ad account, you can only commit ad fraud once, and afterward, the account will certainly be locked without the possibility of appeal.

*2. Target*
This term refers to targeting specific audiences in Facebook Ads. Facebook now supports more optimized options for targeting audiences. Specifically, you can segment based on gender, age, behavior, interests, etc.

One of the most common Facebook Ads terms

Additionally, to optimize your ad campaigns, targeting similar audiences is a cost-effective way to reach potential customers for the products and services you are offering.

3. Flagged Ad Account

When you receive this notification, it means that your Facebook Ads account has been locked, and you can no longer run ads from this account.

*Why is your account flagged?
  • You have violated a Facebook policy.
  • Your fanpage is considered a “spam” page (e.g., buying likes, etc.).
  • It has been reported by users.
4. Spent
“Spent” in Facebook advertising refers to the account starting to incur charges for ads. When you see that an ad is “spending money,” it means the advertising budget is being used.
However, a common issue is that there may be multiple advertising campaigns with large budgets that aren’t spending money, meaning the ads are either not being displayed or are performing poorly. This can severely impact business operations by reducing the ability to introduce products or services to potential customers.

*Reasons why your account may not be spending money:
  • Ad account credibility: The account may not spend money if there are issues related to its credibility or a history of violations.
  • Low-quality fanpage: If the fanpage has quality issues, such as spam or invalid activities, this can impact the ad budget spending.
  • Unattractive content: If the ad content is not compelling enough or does not resonate with the target audience, the ad may not perform well and may not spend money.

Conclusion

The above are common and important Facebook Ads terms that, when understood, will greatly support your company’s advertising campaigns.

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