7.Glossary.pdf

Acronym API GLOSSARY Term Definition A/B test A test that enables you to conduct a controlled experiment comparing multiple ad sets to see which performs the best. ad quality A calculated value determined by your ad quality along with how relevant your ad is to the chosen individual. Advanc...

Acronym API GLOSSARY Term Definition A/B test A test that enables you to conduct a controlled experiment comparing multiple ad sets to see which performs the best. ad quality A calculated value determined by your ad quality along with how relevant your ad is to the chosen individual. Advanced matching A Meta Pixel feature that allows websites to pass additional site-visitor information, such as email addresses or phone numbers. Alternative hypothesis A hypothesis contrary to the null hypothesis, that there’s a relationship between two measured phenomena or an association among groups. Application programming interface An interface that enables software components to communicate with each other and share data. Attribution A measurement solution that enables you to see which platform, channel, device, ads or content should be credited with a conversion. attribution model The logic that determines how credit is given to touch- points for a conversion. The attribution model logic can be based on a rule or set of rules or a statistical model. auction (buying type) An ad buying type wherein you decide that you would like to participate in an ad auction. bid The price for the outcome you're optimizing for. bid cap A bid strategy that lets you set a maximum bid to be used in each auction. bid pacing The part of pacing that adjusts your bid or which auctions to enter based on how much budget and time you have left for your ad set. 62 Acronym CTR GLOSSARY Term Definition bid strategy In Meta Ads Manager and Ads Reporting, a setting you select that helps determine how to spend your budget in alignment with their campaign goals. brand lift Also known as brand affinity, a metric that gives you insight into people's attitudes towards your brand and brand awareness. budget allocation The amount of marketing expenditure allotted for each marketing activity. buying type The method by which you buy ads across Meta technologies. clickthrough rate The number of times something is clicked on, divided by the number of times it has been displayed. control group The "unexposed" group of people in a study for which no factors of the test are influenced. It's used as a benchmark to measure the effect of the test. conversion efficiency How effectively your ads drove the interactions you’re measuring. Conversion Lift An experiment that uses randomized control trials (RCTs) to measure the number of incremental conversions that happen as a result of ads across Meta technologies. conversion lift A marketing metric that quantifies the number of additional conversions that result from ads. conversion lift percent The percent difference in conversions between the people who did and didn’t see your ads during a test. conversion rate The estimated number of times a link on a web page is clicked, compared with the number of times it’s displayed. conversion window This enables you to choose what type of conversion information is used when determining who your ads are shown to. cost cap A bid strategy that enables advertisers to set a maximum average cost per optimization event for an ad set. Meta will keep the average cost as far below that amount as possible, but keep showing ads until it’s reached. 63 Acronym Term Definition CPC cost per click The cost to the advertiser each time an ad is clicked. cost per result The cost to you each time an action is taken because of your ad. cost per result goal A bid strategy that enables you to provide a benchmark cost for the results you care about. This limits your cost per conversion while maximizing the number of conversions. The goal amount you provide is an average amount that’s delivered against over the campaign lifetime, while dynamically bidding as high as needed to maximize results. This means that the average cost per result may exceed the set amount. cost per thousand impressions The average cost you've paid for 1,000 impressions of your ad, or the average revenue you've received for 1,000 impressions of an ad on your apps or websites. cross-channel measurement Indicates outcomes related to advertising across numerous online or offline channels, such as Meta and television. custom event A logged action based on a specific action you want audiences to take on your website, app or offline. customer relationship management A tool that enables businesses to manage customers’ contact information and interactions through the customer life cycle. daily budget The average amount you’re willing to spend on an ad set or campaign every day. data analysis A process of inspecting, cleansing, transforming and modeling data with the goal of discovering useful information, informing conclusions and supporting decision making. Data analysis has multiple facets and approaches, encompassing diverse techniques under a variety of names, and is used in different business, science and social-science domains. In today’s business world, data analysis helps businesses to operate more effectively and make decisions more scientific. data source A tool, connection, piece of code or other object that collects information, such as the Conversions API, Meta Pixel, Facebook SDK and offline conversions. The information can be used for measurement and analysis. CPM GLOSSARY 64 Acronym GRP GLOSSARY Term Definition dependent variable A variable whose value depends on that of another. event A logged action that people take on your website, app or offline, usually used for capturing and measuring ad performance. exact matching In marketing research, an observational method that examines a group of people exposed to an ad campaign and tries to find a match for each person in the non-exposed group. experimental method In marketing research, a measurement method that shows different types of ads to separate groups of people in a controlled manner. first-party data Data a brand collects directly from its customers, such as website activity data and sales data. first-touch attribution A rule-based attribution model that gives 100% of conversion credit to the first click or visit in a conversion path. If there is no click or visit, then it will credit the conversion to the first impression. gross rating point A unit of measurement of audience size for TV advertisements, according to Nielsen. It is used to measure the exposure to one or more programs or commercials, without regard to multiple exposures of the same advertising to individuals. highest volume A bid strategy that can maximize delivery and conversions you can get from your budget. Best for spending your budget as efficiently as possible. However, the cost of your ad results will fluctuate more, as changes are made to get the highest volume. For example, if auction competition decreases, the cost of your ads may go down and if auction competition increases, the costs of your ads may go up. 65 Acronym ITT KPI GLOSSARY Term Definition highest volume optimized for value A bid strategy used if you want to spend the entire budget by the end of the schedule of an ad set while maximizing the amount of value you get from purchases. This automated bid strategy is available for ad sets optimizing for purchase value. Value optimization uses machine learning to predict how much ROAS you may generate for a business over a one- or 7-day window. This prediction is then used to bid for your highest value customers. By bidding more for people who are likely to spend more, you can maximize the ROAS for your campaigns. holdout test Measures the total conversions caused by your ads across Meta technologies. hypothesis A supposition or proposed explanation made on the basis of limited evidence. Used as a starting point for further investigation. impression A single instance of an ad or piece of content, such as a post, appearing on screen. independent variable A variable whose variation does not depend on that of another. It is the factor that is purposely changed or controlled in order to see what effect it has. intent to treat A randomization method that includes all randomized participants in a statistical analysis and analyzes according to the group they were originally assigned, regardless of what treatment (if any) they received. inter-channel budget The allocation of budgets across different channels. key performance indicator A metric selected to evaluate the success of a campaign or ad. last-touch attribution A rule-based attribution model that gives 100% of credit to the last ad a person interacted with before a conversion, whether it’s an impression or a click. lifetime budget The amount you’re willing to spend over the entire runtime of your ad set or campaign. lift solutions A platform for running experiments on ads across Meta technologies and measuring the incremental impact of ads on business outcomes. 66 Acronym GLOSSARY Term Definition liquidity In the context of machine learning, the concept of allowing Meta to determine the best placement, ad set budget and bids for a campaign. machine learning A discipline that uses science, information and computer code to automatically predict certain outcomes based on discovered patterns not explicitly programmed. marketing mix modeling A regression-based analysis that quantifies how much sales and thus return on ad spend can be correlated to each media channel in the mix, for both offline and online channels. Meta Pixel A piece of code installed on your website that captures website events. multi-cell test A test that runs multiple experimental designs at the same time. For example, in a two-cell multicell test, cell A has two groups, test and control, and cell B has two groups, test and control. multi-touch attribution A rule-based attribution model that enables you to credit multiple touchpoints in the customer journey. natural experiment An observational study in which subjects fall into either the exposed or non-exposed groups based on a naturally occurring event. nested test An experimental method in which the treatment group for one test is subdivided into a control group and a secondary testing group. null hypothesis A general statement or default position in inferential statistics that there is no relationship between two measured phenomena or no association among groups. observational method A way of collecting data through observing. offline conversions Enables you to measure how much your ads across Meta technologies lead to offline outcomes, such as purchases in your stores, phone orders and bookings. 67 Acronym RCT GLOSSARY Term Definition opportunity logging In an ad’s test period, for the target audience that has an opportunity to see the ad at some specific stage along the delivery funnel (meaning, for a user’s request, that the user has an ad passed at some stage), Meta logs the opportunities (uniquely identified by tags like, userId, studyId, dynamicHoldoutId and isContro) to scribe tables. p-value The probability of obtaining test results at least as extreme as the results actually observed during the test, assuming that the null hypothesis is correct. parameter A modifier or custom value assigned to an event for the purpose of adding contextual information for measurement. Parameters are applied to events, and are either predefined parameters applied to predefined events (by Meta) or custom parameters applied to custom events (defined by the user and implemented in their code). propensity score matching In marketing research, an observational method that assigns everyone in the exposed and nonexposed groups a probability of being exposed. Then people from each group are matched based on their similar probabilities. R² Also known as the coefficient of determination, R² is the proportion of the variance in the dependent variable that is predictable from the independent variable(s). randomized control trial RCTs test a hypothesis by introducing a treatment, studying the effects and determining the impact of your ad. Ultimately, an RCT can help determine how much to spend on each marketing channel in order to maximize results. reach The number of people exposed to a medium at least once during a given period. reach and frequency (buying type) An ad buying type that enables you to reach an established number of people within an audience at a specified frequency at a fixed price. 68 Acronym Term Definition regression adjustment In marketing research, an observational method whereby people build a model based on the observed data and use the model to predict the outcome of the campaign based on a set of observed variables, including whether or not people were exposed to the advertising campaign. ROAS return on ad spend An economic indicator used to evaluate the effectiveness of ad spend. It is calculated as the ratio of the amount gained or lost relative to the amount invested. ROI return on investment An economic indicator used to evaluate the efficacy of total media investment, including trade. It is calculated as the ratio of the amount gained or lost relative to the amount invested. sales lift The additional revenue caused by ads in a test, when compared to the test and control groups. search engine marketing The practice of marketing a business using paid advertisements that appear on search engine results pages. single-cell test A study with one test group, where group A is shown the ad but group B isn't shown the ad. Software development kit A piece of code installed on an app that captures app events. statistical attribution model An attribution model that uses algorithms to determine credit for each touchpoint. target rating point (buying type) An ad buying type that enables you to plan and buy video campaigns using Nielsen-verified target rating points (TRPs) on Facebook and Instagram. test duration How long a test runs for, from beginning to end.How long a test runs for, from beginning to end. third-party data Data collected by a party that does not have a direct relationship with the user (such as DMP). total value calculation Advertiser bid X estimated action rates + ad quality = total value SEM SDK TRP GLOSSARY 69 Acronym GLOSSARY Term Definition variable A quantity or other piece of data that can assume different values. visit In Attribution, the number of times a person loaded your website from any channel, including paid, direct, organic and untracked channels, as recorded by the Meta pixel or Facebook SDK. 70