Facebook advertising is profitable but difficult to master. Facebook advertising is challenging to learn because you must know different advertising and marketing ideas.

Technical advertising jargon abounds in online learning materials such as blog posts, white papers, and ebooks, making them difficult to comprehend.

Ad metrics and words have their own acronyms, which you need to remember in order to understand other instructional resources, as well.

We've compiled a list of the 13 most critical advertising terms you'll need to know if you want to run successful Facebook ad campaigns.

Add To Cart (ATC)

The amount of add-to-cart events attributable to your ads as recorded by the Facebook Pixel.

Average Order Value (AOV)

Your website's average order or sale value is determined by this metric. Calculated by dividing total income by number of orders.

Click-Through Rate (CTR)

The proportion of individuals that saw your advertisement and subsequently clicked on it. Calculated by dividing the total number of impressions by the total number of clicks.

Conversion rate (CVR)

Advertising click-through-to-purchase ratio. Conversion rate is derived by dividing sales (conversions) by clicks.

Cost Per Click (CPC)

The typical cost of a Facebook ad click. Additionally, it's one of the most often utilized measures for evaluating the effectiveness of an ad campaign's performance.

Cost Per Thousand Impressions (CPM)

The average cost of a thousand people seeing your ad The cost-effectiveness of your campaign is measured in CPM.

Cost per action (CPA) 

The average cost of a visitor who clicks on your ad and takes action. It's determined by multiplying your ad cost by the number of actions taken.

Cost per purchase (CPP)

The average cost of a sale that was brought about by your ad campaign. Divided by the total number of purchases, this metric is derived.

Custom Audience (CA) 

Using client data like email addresses or phone numbers, you can construct a Facebook advertising audience. Upload your client list to Facebook to create a Custom Audience.

Customer Lifetime Value (CLTV)

Predicts a customer's lifetime profit. CLTV helps you decide how much to spend on a consumer.

Lookalike Audience (LAL)

Using an existing Custom Audience, you may build this Facebook ad audience. Lookalike Audiences are comparable to Custom Audiences.

Return on ad spend (ROAS)

It measures ad campaign performance. To calculate ROAS, divide the campaign's revenue by its cost.

Campaign Budget Optimization (CBO)

Facebook will automatically optimize the distribution of your campaign's budget across all of your ad sets if you select this option.