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Social Performance Marketing Glossary

Social Performance Marketing Glossary
Max

Max

Jul 25, 2024 · 5 min read

A

  • Ad Impressions: Show how often your ad was displayed to users on a social media platform. Not to be confused with reach, which counts unique users.
  • Ad Spend: The budget spent on an ad campaign. No money, no seat at the table when bidding for ad placements.

B

  • Bidding: The process where advertisers bid in an automated system, pitting your ad against others. Higher bids can secure better ad delivery. The clear goal: get your ad shown as often as possible to the right audience.

C

  • CPA (Cost per Action): In social performance marketing, the cost incurred until an action — a purchase, a booking, an inquiry — is completed.
  • CPC (Cost per Click): The price paid per click on an ad. Use CPC to measure the efficiency of your ads.
  • CPL (Cost per Lead): That one is obvious — cost per lead generated.
  • CPM (Cost per Mille): Cost per thousand impressions. A standard measure for evaluating ad delivery costs.
  • CR (Conversion Rate): The percentage of users who complete a desired action (e.g. purchase, sign-up) on your website.
  • Creative: Refers to the visual elements of your campaign — in other words, what gets served to the audience.
  • CTR (Click-Through Rate): The percentage of users who clicked on an ad, divided by total impressions. An indicator of an ad's effectiveness.

E

  • Engagement Rate: Shows how actively the audience interacts with an ad — through likes, comments, shares, and other actions.

F

  • Frequency: This indicator tells you how often the audience has seen an ad on average.

G

  • Geo-Targeting: A method of serving your ads exclusively to users in specific regions. Especially useful for local marketing campaigns.

I

  • Influencer Marketing: A form of social media marketing that leverages the reach and recognition of influencers.

K

  • KPI (Key Performance Indicator): Metrics used to measure the effectiveness of an ad campaign (e.g. impressions, clicks, and conversions).

L

  • Lookalike Audience: An audience segment built by the social platforms that lets advertisers reach new users who resemble their existing customers.

P

  • Pixel: A code snippet embedded in a website or app. It tracks user behavior and collects relevant data for retargeting and conversion tracking.
  • PPC (Pay per Click): A billing model where you, the advertiser, only pay when someone clicks your ad.

R

  • Retargeting: The practice of serving ads to users who have already interacted with your brand — whether by visiting your website or engaging with a previous ad.
  • ROAS (Return on Advertising Spend): Shows you how effective and profitable your ad campaign is. ROAS is one of the most important KPIs in social performance marketing — it tells you how much revenue you earn for every euro invested in your ad.

S

  • Social Media Analytics: The data and statistics pulled from social media platforms to measure the performance of content and campaigns.
  • Social Proof: A psychological phenomenon where people copy the actions of others, believing those actions reflect correct behavior.

T

  • Testing: A method for comparing different elements of a campaign. A good testing setup lets you get the maximum out of your campaigns by continuously optimizing creatives, copy, and audiences.

U

  • UGC (User-Generated Content): Content created by users and shared on social media or other platforms. UGC has also established itself as a content format for ads.

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