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PPC, SEO, KPI and Co.: The most important abbreviations in online marketing
Anyone who has not yet had any experience with online marketing and has had no contact with this form of marketing often stumbles across shortcuts in everyday life. The abbreviations usually consist of three letters and the meaning cannot be derived easily.
In the world of online marketing, certain acronyms are commonplace. One of the best-known abbreviations of this type is the term EDP, which is made up of the first letters of “electronic data processing”. In online marketing, these are usually abbreviations of English terms. We present the 10 most common acronyms in a short portrait.
PPC: Short for the term pay-per-click, which in turn is a synonym for CPC (cost-per-click). In online marketing, this refers to a billing procedure in which an advertiser receives an amount X each time a user clicks on the advertising link.
SEO: Short for search engine optimization (Search Engine Optimization). This generic term summarizes all measures that are taken to achieve the best possible placement in the organic search results with a website.
SEA: Short for search engine advertising (search engine marketing). These are paid advertisements that are placed in order to be easier to find in the search engine results list.
KPI: Short for Key Performance Indicator. This key figure provides information on how successful a company has been in meeting the goals it has set itself over a specific period of time.
ROI: Short for return of investment or in German: return on capital. When calculating the ROI, an investment made is set as a percentage of the profit made.
CTR: Short for the term click-through rate. This metric compares the clicks on an ad to the frequency of its display. Example: If a banner is displayed 100 times and clicked twice, the CTR is 2%.
CMS: CMS is the abbreviation for Content Management System. This is software that is used to design websites. Well-known content management systems are WordPress and Typo3.
B2B/B2C: Abbreviation Business-to-Business or Business-to-Consumer. These terms mean business relationships between companies (B2B) and business relationships between companies and end consumers (B2C).
POS: POS stands for Point of Sale. This term is used in all areas of marketing. The name hides a place where a sale takes place (example: supermarket, fashion boutique, online shop).
USP: Short form of Unique Selling Proposition. This feature distinguishes a company or brand from competitors or competing products.
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Facebook Ads – The most important abbreviations at a glance
CPA, CC, DPA, UPP - in social media marketing, many abbreviations have become established in normal usage. But not everyone knows what's behind it, especially when you're just starting out online and a lot is new. Especially Facebook ad abbreviations are often very confusing for beginners.
In order to provide a little more perspective, we have compiled the most important abbreviations relating to social media marketing and Facebook advertisements in this blog post and explain what they are all about:
Common abbreviations in social media marketing
Ad
“Ad” is short for Advertising. This generally means advertising per se and any type of advertising material. The paid advertisements on Facebook are also called "Facebook Ads".
AI (Audience Insights)
In social media marketing, AI does not stand for artificial intelligence, but for audience insights, the target group insights. There, advertisers receive valuable information on three different groups of people: people connected to their own page, people in the custom audience and people on Facebook. With the data from Audience Insights, advertisements can be created more specifically for the target group and new groups of people can be found that are similar to the current target group.
AOV (Average Order Value)
The average order value (AOV) is a key figure from e-commerce. To calculate the key figure, the total sales are divided by the number of orders.
API (Application Programming Interface)
With the help of the API (application programming interface), programs are provided with a tool with which they can connect to a software system.
BM (Business Manager)
The Facebook Business Manager is a tool that is made available free of charge to companies and advertisers by Facebook. The tool can manage multiple pages and ad accounts, and give different access rights to different people.
CR (Conversion Rate)
The conversion rate tells you how many of the website visitors performed the desired action. For the calculation, the total number of website visitors is divided by the number of people who have performed the desired action.
KPI (Key Performance Indicator)
KPIs are key indicators that reflect corporate performance and serve as target projects. Therefore, the KPIs must always be considered company-specific, since they are derived from the respective company goals.
LTV (Lifetime Value)
Translated, the LTV means “term value of customers”. This represents the net profit that can be attributed to a customer over a period of time. The value is based on our own assumptions or calculations. The following data can be included:
- The customer's total sales
- Length of stay on the website when a purchase is made
- Approximate length of customer relationship with the company
A custom audience can then be created on the basis of these customer values. This in turn can be used as the basis for a value-based lookalike audience.
ROI (return on investment)
The ROI (return on investment) is an important indicator in marketing. Here, the capital employed (e.g. advertising amount) is set in relation to the profit generated with it (e.g. purchases that can be assigned to the advertisement on Facebook). The ROI thus provides information about the efficiency of the entrepreneurial activity.
RT (retargeting)
Retargeting, also known as remarketing, is a personalized targeting strategy. Visitors to a website are addressed again with advertising after leaving the homepage. In order to be able to use retargeting on Facebook, the Facebook pixel must be implemented on the website. In this way, visitors to the site can be added to a Website Custom Audience (WCA) and addressed in a targeted manner.
TOS (Terms of Service)
TOS stands for Terms of Service. Behind this are terms of use, for example from Facebook.
UGC (User Generated Content)
User-generated content is understood to mean content that is not created by the website operator or those responsible for a Facebook page themselves, but by the users. User-Generated Content may include, but is not limited to, images, reviews, comments, blog articles, or videos.
UPP (Unpublished post/ Dark post)
A dark post is an unpublished Page post created using Facebook's Ads Manager. It does not appear in the site's news feed, but can still be used for advertisements. A dark post can also be published later on a Facebook page in the Business Manager via the “Page posts” tab. So e.g. B. Different versions of a posting can be tested via dark posts before publication.
USP (Unique Selling Proposition)
The USP (Unique Selling Proposition) describes the properties of a product or service that make the product stand out from other offers.
Creation of Facebook ads
AB (Auto Bidding)
The display of Facebook ads is based on an auction model. You can choose between automatic or manual bids. With automatic bidding (AB), Facebook's advertising auction system adjusts the bid to get as many desired actions as possible within the budget set.
CA (Custom Audience)
A CA (Custom Audience) is a type of audience that can be created from existing customer or prospect data.
CC (Custom Conversion)
Custom conversions represent an alternative to the standard Facebook events. If the Facebook pixel is implemented on the website, up to 100 custom conversions can be created in order to be able to measure user-defined actions on the homepage.
CTA (Call to Action)
The call to action is a request for action for the target group. Various call-to-action buttons can be inserted into Facebook ads to tell users directly what to do. You can choose, for example, the prompts "Send a message", "Contact us", "Download" or "Learn more". A link or form can then be stored according to the call to action.
CTW (Click to Website)
There are various advertising goals on Facebook that an ad can be optimized for. One of them is "Click to Website", i.e. traffic. This type of ad is intended to get as many users as possible to click on the call to action so that they are then directed to the stored landing page or website.
DPA (Dynamic Product Advertising)
With Dynamic Ads from Facebook, products are automatically played out to people who have already connected to the company via the website, the app or elsewhere on the Internet. A prerequisite for dynamic product advertising is a product catalog and the one-time setup of the campaign.
LA/ LAA/ LLA (Lookalike Audience)
A lookalike audience is an audience that resembles existing customers or prospects. To do this, a target group is created that has similar demographics or interests as the underlying target group on which the LA is formed. The size of the lookalike audience can be variably defined. The rule is: the smaller, the more it resembles the underlying target group.
LTB (Lifetime Budget)
The LTB is the runtime budget, which can be set when creating an advertisement.
MB (Manual Bidding)
Manual bidding is the second way to participate in Facebook ad auctions. The monetary value of the bid is determined by the advertiser himself.
PPE (Page Post Engagement)
Page Post Engagement is German for post interactions. If a Facebook ad is created, it can be optimized for PPE, i.e. for interactions, among other things. This means that the ad will be shown primarily to people who respond to ads and thus interact with the post.
WCA (Website Custom Audience)
The Custom Audience website is a targeting option for Facebook ads. The Facebook pixel matches the website visitors with the people on Facebook. The target group is created on this basis.
Metrics
ATC (Add to Cart)
Add to Cart means "put into the shopping cart". The Facebook pixel can use the "Add to cart" event to track how many times the action has been performed. In the metrics for evaluating the advertisement, the number can be found under "Add to shopping cart on website".
CPA (cost per action)
The CPA (cost per action) indicates the effective effectiveness of an advertising measure. At the beginning of a campaign, this "action" or the intended action must be precisely defined in order to be able to evaluate it after the advertisement. The cost per action (CPA) then indicates the average value that an action costs on Facebook.
This number is influenced by many other factors, such as the design of the ad and how many advertisers are trying to serve ads to the same target group at the same time. If the competition is very high, this can lead to higher costs per action. It should be noted that the CPA should never be higher than the margin on a specific product, otherwise no profit will be made from the sale of the product. The CPA cannot be found directly in the Facebook advertising account; the costs incurred are all listed separately here, for example “Cost per page interaction”, “Cost per post interaction” or “Cost per website conversion”.
CPC (cost per click)
The "costs per click" indicate the average cost per click on the advertisement. The calculation is carried out automatically by Facebook and is listed in the results of the advertisement. If you want to understand the calculation, the total expenditure must be divided by the number of clicks (e.g. link clicks).
CPE (cost per engagement)
The average cost per post interaction, the CPE, tells you how much an
interaction with the post cost on average. Interactions with the post
may include, for example, responding to the ad, commenting on or sharing
the ad, claiming an offer, viewing a photo or video, or clicking a link.
For the calculation, Facebook divides the total spend by the number of
interactions with the post.
CPP (cost per purchase)
CPP stands for Cost per Purchase, i.e. costs per purchase. On Facebook, the metric is called Cost Per Website Purchase. To do this, Facebook counts all purchase events that the Facebook pixel has recorded on the website and can be assigned to the advertisement and put them in relation to the total expenditure, i.e. the average costs per website purchase are calculated.
CPM (cost per mille)
To find out what the average cost per 1000 impressions was, the cost per mille (or counts per mille) is calculated. This is a very general variable with rather little meaningfulness. In the Facebook advertising account, the calculation takes place automatically. If you want to do the calculation yourself, the CPM can be calculated with the following formula:
(Total Ad Cost/Total Impressions) x1000
CTR (Click Through Rate)
The click-through rate measures the effectiveness of the advertisement. The ratio of clicks to the total number of impressions is calculated here. The higher the value, the better. Because the higher the number, the more people have clicked on the ad in percentage terms.
PU/PUR (Purchase)
If a standard event for the purchase of products or services is integrated on the website, the Facebook pixel can count the actions. This is how this metric tracks website purchases.
CPM (cost per thousand contacts)
The price per thousand contacts indicates the amount that must be used for an advertising measure in order to reach 1000 people. The metric is also known as CPM (cost per mille).
ROAS (Return on Ad Spend) for website purchases
The return on ad spend is a key figure that evaluates whether and how an advertisement on Facebook is worthwhile. The value of the key figure is based on the value of all conversions that were recorded by the Facebook pixel and could be assigned to the advertisement. ROAS is calculated by dividing the value of conversions by the total amount spent. If the value is 1, the value of conversions corresponds exactly to the total spend. The aim here should be to achieve a value above 1.
VC (View Content)
VC stands for View Content and behind it is the key figure "Content calls on the website". Values are only recorded here if a Facebook pixel and the standard event "Show content" are implemented on the website. If this is the case, the number of content views is counted. If you put this number in relation to the total costs, you get the average costs per content call on the website.
VV (Video Views)
Video views are measured differently on Facebook. On the one hand, the time is measured and records how many people have viewed the video for 2, 3, 10 or 30 seconds and, on the other hand, the video playback is determined as a percentage. Here the number of people who have viewed a video at 25%, 50%, 75%, 95% or 100% is recorded. The second key figure also contains the people who jumped to this point. This means that if a person calls up a video and then jumps to the end, this corresponds to a video playback of 100%.
WC (website conversion)
Conversions are certain actions that a visitor to the website refers to. For example, registering for a webinar, purchasing a product or similar. In order to be able to find out how often the desired action (conversion) was carried out in addition to the link clicks in advertisements, the Facebook pixel must be integrated on the page. If additional events or custom conversions are implemented on the website, website conversions (WC) are counted as soon as the Facebook pixel records these events or conversions, which can be assigned to the advertisements.
