The ad glossary
67 terms media buyers, creative strategists and ecommerce founders use every day, explained in plain English with formulas and worked examples.
A
A/B testingComparing two versions of an ad, page or element by splitting traffic between them to see which performs better on a chosen metric.Ad angleThe specific reason, benefit or perspective an ad uses to persuade someone, such as saving time, avoiding a problem or gaining status.Ad fatigueThe decline in ad performance that happens when the same audience sees the same creative too many times.Ad setThe middle level of a Meta campaign, where budget, schedule, audience, placements and optimisation goal are usually set.Ad spy toolSoftware that collects and organises publicly visible ads so marketers can research competitors, trends and creative ideas.Advantage+Meta's family of automation features that use machine learning to handle targeting, placements, creative and budget in ad campaigns.AOV (average order value)The average amount a customer spends per order, calculated as total revenue divided by the number of orders.App Tracking Transparency (ATT)Apple's iOS framework that requires apps to ask users for permission before tracking them across other companies' apps and websites.Attribution windowThe period after someone clicks or views an ad during which a conversion can be credited to that ad.
B
Bid strategyThe setting that tells an ad platform how to bid in auctions, balancing volume of results against cost or return targets.Break-even ROASThe minimum ROAS at which ad-driven sales cover product and variable costs, so the campaign neither makes nor loses money.Broad targetingRunning ads with few or no interest and demographic restrictions so the platform's algorithm finds likely buyers on its own.BundleA group of products sold together as a single offer, often at a combined price lower than buying each item separately.
C
CAC (customer acquisition cost)The total cost of acquiring one new customer, including ad spend and other acquisition costs, divided by new customers won.Call to action (CTA)The instruction that tells people what to do next, such as Shop now, Learn more or Sign up, in an ad or on a page.Campaign budget optimization (CBO)A Meta setting that applies one budget at campaign level and spreads it across ad sets automatically, now called Advantage campaign budget.Carousel adAn ad format that shows two or more scrollable images or videos in a single ad, each with its own headline and link.Catalog ads (dynamic product ads)Ads that automatically show products from a product catalog to relevant people, formerly known as dynamic product ads on Meta.Contribution marginRevenue left after subtracting variable costs such as product, shipping, fees and ad spend, available to cover fixed costs and profit.Conversion rate (CVR)The percentage of visitors or clicks that complete a desired action, such as a purchase, out of the total who had the chance.Conversions API (CAPI)Meta's server-side tool for sending website, app and offline events directly from a business's server to Meta.CPA (cost per acquisition)The average ad cost to generate one conversion, such as a purchase or lead, calculated as ad spend divided by conversions.CPC (cost per click)The average amount paid for each click on an ad, calculated as total ad spend divided by the number of clicks.CPM (cost per mille)The cost of 1,000 ad impressions, used to compare how expensive it is to reach an audience across campaigns and platforms.Creative strategistA marketer who uses research and performance data to decide what ads to make, writing briefs and guiding creative testing.Creative testingA structured process for trying new ad concepts, hooks and formats to find which ones drive the best results before scaling them.CTR (click-through rate)The percentage of people who click an ad after seeing it, calculated as clicks divided by impressions.Custom audienceA Meta audience built from people who already have a connection with a business, such as customers, site visitors or engagers.
D
DCO (dynamic creative optimization)An approach where an ad platform automatically combines creative elements into variations and serves those predicted to perform best.Digital Services Act (DSA)An EU regulation setting rules for online platforms, including a duty for very large platforms to keep public repositories of the ads they show.DropshippingA retail model where a store sells products without holding stock, and a supplier ships orders directly to the customer.
F
H
Hold rateThe share of viewers who keep watching a video ad past the opening, often measured with ThruPlays against impressions or 3-second plays.HookThe opening line, image or first seconds of an ad that grab attention and make people want to keep watching or reading.Hook rateThe share of video ad impressions that lead to at least three seconds of viewing, used to judge how well an opening grabs attention.
I
L
Landing pageThe web page a visitor arrives on after clicking an ad, designed to turn that click into a sale, sign-up or other conversion.Learning phaseThe period after launching or significantly editing a Meta ad set when the delivery system is still exploring how best to show the ads.Lookalike audienceA Meta audience of people who share characteristics with a source audience you provide, such as past customers or site visitors.LTV (customer lifetime value)The total revenue or profit a business expects to earn from a customer over the full length of the relationship.
M
Marketing funnelA model of the customer journey from first awareness of a brand through consideration to purchase and beyond.Media buyerA marketer responsible for planning, launching, managing and optimising paid advertising campaigns and budgets.MER (marketing efficiency ratio)Total revenue divided by total marketing spend across all channels, used as a blended view of marketing efficiency.Meta Ad LibraryMeta's free public database of ads running across Facebook, Instagram and other Meta technologies, searchable by advertiser or keyword.Meta PixelA piece of JavaScript code from Meta that records visitor actions on a website for ad measurement, optimisation and audiences.
O
P
Partnership adsMeta ads run by a brand using a creator's or partner's identity alongside its own, previously known as branded content ads.Pattern interruptA creative technique that breaks what viewers expect to see, making them pause and pay attention to an ad.PlacementsThe locations where ads can appear across a platform, such as Facebook Feed, Instagram Stories, Reels or Audience Network.Primary textThe main body copy of a Meta ad, shown above the image or video in most feed placements.Print on demand (POD)A model where products such as shirts, mugs or posters are printed with a design only after a customer orders them.Product detail page (PDP)The individual product page on an online store that shows images, description, price, reviews and the add-to-cart button.
R
ReachThe number of unique people who saw an ad at least once during a given period.RetargetingShowing ads to people who have already interacted with a brand, such as site visitors, cart abandoners or video viewers.ROAS (return on ad spend)Revenue generated for every unit of currency spent on advertising, calculated as ad-attributed revenue divided by ad spend.
S
ScarcityA persuasion principle where limited availability or time makes an offer feel more valuable and encourages people to act sooner.Social proofEvidence that other people use, trust or recommend a product, such as reviews, ratings, testimonials and customer content.Swipe fileA curated collection of ads, copy and creative examples saved for reference and inspiration when making new marketing.
T
U
UGC (user-generated content)Content created by customers or creators rather than the brand, often used in ads for its authentic, native look.Unique selling proposition (USP)The specific benefit or feature that sets a product apart from competitors and gives customers a reason to choose it.Unit economicsThe revenue and costs tied to a single unit, such as one order or one customer, used to judge whether a business model is profitable.UpsellEncouraging a customer to buy a higher-value version, an add-on or a larger quantity than they first intended.UTM parametersTags added to the end of a URL that tell analytics tools where a visit came from, such as the source, medium and campaign.
W
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