What’s with all those acronyms anyway?
Do you know what’s the difference between a Facebook Profile and a Facebook Page? Do you oftentimes see acronyms floating around like CPM and CPL? Do you know what they mean? Are you intimidated by even starting a Facebook ad because you feel so far behind in digital marketing terms?
Whether you’ve been exposed to marketing and advertising before or have never seen an advertising acronym in your life, trust me when I say that you too can create an effective Facebook ad campaign.
It’s certainly true that people are accomplishing their business objectives such as building company awareness or attracting qualified leads, all through a Facebook Advertisement.
If your goal is to get 200 attendees to your local event, a Facebook ad can narrow in on the right people within proximity to your event location. If you goal is to get people to shop online for your T-shirts, a Facebook ad can reach your perfect customer. Even if your goal is to sell a $100,000 fine art painting, you can do that.
To get started, it’s best that you become familiar with a few definitions first.
The newsfeed is the stream of news, status updates and content that you see when you log onto Facebook. The newsfeed is a constantly updating feed that can include, according to Facebook, ‘status updates, photos, videos, links app activity and likes from people, Pages and groups that you follow’.
Pages are what Facebook requires you to set up in order for you to advertise your business or organization. This is different from your personal page that you probably have set up right now. Once you setup your Facebook business page, you’re able to post on the page timeline just like you post on your personal Facebook page. As a business you can post updates, create events, and share pictures and videos. Once a person “likes” your page, they can see updates from you on their News Feed.
The difference between your personal Facebook Profile and your business Facebook Page is that people can “like” your page. A person cannot add your business as a friend. In order for people to follow your page, they have to like it. Having people like your page allows you to build organic awareness for your business.
If you are a company, your page can be verified by Facebook with a grey Verified badge. If you are a celebrity figure, media, entertainment, or sports professional, you can have your page verified by Facebook with a blue Verified badge. The steps are fairly easy after providing the necessary documents to Facebook.
One last thing. In the advertising world, there are a few common acronyms that you should know:
CPC (Cost per click)
This is a term that defines the average amount that you will pay for each click on your ad. You can calculate CPC by dividing the total cost of your ad by the total number of clicks to your ad.
CPL (Cost per lead)
You’ll see this term floating around most especially when you’re running a Lead Ad with Facebook. The cost per lead is a step up from the cost per click in that in that it is an equation that tells you the cost to acquire a lead for your business. You calculate the CPL by dividing the total cost of your ad by the total number of leads that you obtain. In the case of a Facebook Lead Ad, this would be the total number of people that submitted their information for you to contact them.
CPM (Cost per impression)
That’s cost per 1,000 impressions to be exact. To calculate cpm, first you want to divide the total number of impressions that your ad delivered. Then you take that number and divide it by the cost of your ad. So if you spent $100 on your and ran 250,000 impressions, you would first divide 250,000 by 1,000 to get 250. Now divide $100 by 250. Your cpm is $.40.
Let’s try another one: Let’s say you spent $40 on an ad and you ran 12,500 impressions. So first divide 12,500 by 1,000 to get 12.5. Then divide your cost of $40 by $3.20.
Not hard, right?
If you’re ready to start running Facebook Ads, get started and start testing. I also have a helpful guide that outlines all the different audience targeting parameters that you can choose from.