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Glossary overview


Armin Gögele, last updated on July 10, 2023

The social network Facebook is the largest of its kind, with 2.99 billion monthly active users in 2023. While individuals can create user profiles for free and create and share content, the social network giant generates revenue primarily by providing advertising space in online marketing.

Companies place ads (social media advertising) to get their messages and offers in front of the right audience. Facebook uses complex algorithms to target users based on their interests, behavior and demographics to increase the success of their ads.

Advertising on Facebook enables

  • Target specific audiences
  • Increase reach cost-effectively
  • Achieve a variety of goals, such as building awareness and community (Like Ads),
  • collecting data from potential customers (Lead Ads),
  • or generating inquiries and reservations.

The most important questions about Facebook

How can Facebook advertising reach the desired target audience?

Facebook advertising reaches the desired target audience by utilizing extensive user data and algorithms. Companies can optimize their ads based on interests, demographic characteristics, and user behavior, creating a detailed profile of users through analyzing activities, likes, and comments. With this information, the social network can present relevant ads to users who are most likely interested in the advertised products or services. Additionally, Facebook allows the use of Lookalike Audiences, identifying similar user groups that resemble existing customers, expanding the reach and targeting potential new customers.

How can the success of Facebook ad campaigns be measured?

Facebook provides detailed statistics and metrics to measure the success of ad campaigns. Companies can track metrics such as reach, engagement, clicks, and conversions to evaluate the ROI of their campaigns.

How do I create a Facebook ad campaign?

To create a Facebook ad campaign, a Facebook Ads account should be first created. The Ads Manager is then used to set up the campaign. The campaign objective, such as increasing awareness, generating leads, or driving sales, can be defined and the target audience, budget, and ad format be determined. Subsequently, ad groups and the ads themselves are created. Once everything has been reviewed, the campaign is activated, and the ads are shown to potential users on Facebook.