Facebook Ads Glossary: 25 Terms Every Beginner Should Know

Facebook ads have their own language.

CPC, CPM, CTR, ROAS... it sounds like alphabet soup.

Let me translate the most important terms into plain English. Bookmark this page and come back whenever you see a confusing term.

1. Ads Manager

The tool where you create and manage all your Facebook and Instagram ads. Think of it as mission control for your advertising.

2. Campaign

The highest level of your ad structure. Each campaign has one main goal (like getting website traffic or generating leads).

3. Ad Set

The middle level between campaign and ad. This is where you choose your audience, budget, and schedule. One campaign can have multiple ad sets.

4. Ad

The actual thing people see. Your image, video, headline, and copy. One ad set can have multiple ads.

5. Impressions

How many times your ad was shown to people. If one person sees your ad three times, that's three impressions.

6. Reach

How many unique people saw your ad. Unlike impressions, reach only counts each person once no matter how many times they saw it.

7. Click-Through Rate (CTR)

Percentage of people who saw your ad and clicked it. Calculated as: clicks ÷ impressions × 100. A CTR of 1% means 1 out of 100 people clicked.

8. Cost Per Click (CPC)

How much you pay each time someone clicks your ad. Calculated as: total spend ÷ total clicks. Lower is better.

9. Cost Per Mille (CPM)

Cost per 1,000 impressions. "Mille" is Latin for thousand. This shows how much you pay to show your ad 1,000 times.

10. Conversion

When someone takes the action you want. Could be a purchase, signup, download, or whatever goal you set. This is what actually matters for your business.

11. Conversion Rate

Percentage of people who clicked your ad and then converted. Calculated as: conversions ÷ clicks × 100. Shows how well your landing page works.

12. Cost Per Conversion (CPA)

How much you pay for each conversion. Also called Cost Per Acquisition. Calculated as: total spend ÷ conversions.

13. Return on Ad Spend (ROAS)

Revenue generated divided by ad spend. ROAS of 3:1 means you made $3 for every $1 spent. This is how you know if ads are profitable.

14. Frequency

Average number of times each person saw your ad. Calculated as: impressions ÷ reach. High frequency (4+) means ad fatigue might be happening.

15. Targeting

Choosing who sees your ad based on location, age, interests, behaviors, and more. Good targeting is the difference between success and failure.

16. Audience

The group of people who see your ad. Can be based on demographics, interests, or custom lists you create.

17. Custom Audience

An audience you create from your own data. Like people who visited your website, people on your email list, or people who engaged with your Facebook page.

18. Lookalike Audience

Facebook finds people similar to an audience you already have. Great for finding new customers who resemble your existing ones.

19. Facebook Pixel

Code you put on your website to track visitors and conversions. Essential for measuring results and retargeting. We covered this in detail in another post.

20. Retargeting (Remarketing)

Showing ads to people who already interacted with your business. Like someone who visited your website but didn't buy. Very effective.

21. Landing Page

The page people land on after clicking your ad. Could be your website, a special offer page, or a signup form. Quality here determines conversion rate.

22. Call-to-Action (CTA)

The button or instruction telling people what to do. Examples: "Shop Now," "Learn More," "Sign Up." Clear CTAs improve results.

23. Creative

The visual part of your ad. Your images, videos, and copy. Good creative gets attention and drives clicks.

24. Placement

Where your ad appears. Could be Facebook News Feed, Instagram Stories, Facebook right column, etc. Different placements perform differently.

25. Learning Phase

The period when Facebook is testing your ad with different people to figure out what works. Usually takes 3-7 days. Don't make changes during this time.

Bonus Terms You'll See

Engagement: Likes, comments, shares, and clicks on your ad.

Boost: Paying to show an existing Facebook post to more people. Different from creating an actual ad.

Objective: Your campaign's goal. What you want people to do.

Budget: How much you're willing to spend daily or over the campaign's lifetime.

Bid: How much you're willing to pay for results. Facebook usually handles this automatically.

Relevance Score: Old term (now called "Quality Ranking"). Shows how relevant Facebook thinks your ad is to your audience.

Split Test (A/B Test): Running two versions of an ad to see which performs better.

Ad Fatigue: When people see your ad too many times and stop responding to it.

Optimization: What Facebook tries to maximize. Like link clicks, conversions, or reach.

Attribution: Determining which ad led to a conversion. Gets complicated with long sales cycles.

How to Use This Glossary

Don't try to memorize everything. Just keep this page bookmarked.

When you're in Ads Manager and see a confusing term, come back here and look it up.

Over time, these terms will become second nature. Every expert started exactly where you are, confused by the terminology.

The Terms That Matter Most

If you only remember five terms, make them these:

CPC (Cost Per Click): Shows if people are clicking your ad
Conversion Rate: Shows if your landing page works
ROAS (Return on Ad Spend): Shows if you're making money
Targeting: Who sees your ad
Creative: What your ad looks like

Master these five and you'll understand 80% of what matters.

Keep Learning

Facebook adds new features and terms regularly. The platform evolves.

Don't stress about knowing everything. Learn as you go. Every campaign teaches you something new.

The best education is doing. Create campaigns, make mistakes, and learn from results.

Speak the Language Confidently

Understanding these terms helps you:

• Make smarter decisions

• Communicate with marketing help if you hire it

• Read articles and tutorials

• Actually know what you're doing

Stirling helps you create Facebook ads using best practices and proven techniques, so you don't need to know every technical term. The AI handles the complexity while you focus on running your business.

But knowing the basics never hurts. Save this glossary and reference it whenever you need a reminder.