Quick guide to Facebook advertising, with detailed information on ad units and tracking metrics.

1. CMOs Guide to
Facebook Advertising
Making Sense of your Facebook Campaigns

2. 1
CMO’s GUIDE TO FACEBOOK ADVERTISING
02 WHY FACEBOOK ADVERTISING
With more than 1.11 billion people on Facebook every
month and with a 23% growth from 2012, Facebook
provides marketers the unique opportunity to increase
their brand reach and drive user engagement
04 FACEBOOK AD UNIT TYPES
Facebook offers several advertising options that can
be leveraged depending on the brand and business.
Learn more about what they are and what the right fit
for your business is.
06 GETTING STARTED
Facebook lets you create ads that help you get your
customers to your fan page or website. While
facebook ads are still in their nascent stage you can
get started on this by learning more about the different
ad units that facebook offer.
08 KPI’S METRICS AND BENCHMARKS
What are the key metrics to measure the success of
your facebook campaign and how do you know if you
are spending money in the right place and if Facebook
is working for you. Learn more about the metrics and
industry benchmarks that exist for Facebook
advertising.
08 IMPORTANT TERMINOLOGIES
Like any new platform, Facebook comes with its own
set of words and terminologies. Some of these are
borrowed from traditional paid campaigns while others
are very specific to Facebook.

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CMO’s GUIDE TO FACEBOOK ADVERTISING
WHY FACEBOOK ADVERTISING
More than 1.11 billion people use Facebook each month, slightly more than the 1.06 billion
reported three months earlier. It represents a 23 percent growth from a year earlier.
Facebook has over 665 million active users each day on average, and 751 million using
Facebook from a mobile device each month.
The Facebook audience reach and growth is in line with most business strategies for the year a
mix of social, local and mobile.
TITLE: MONTHLY ACTIVE USERS (MAU’S) ON FACEBOOK
SOURCE: ZEDNET
Facebook Ads are a great way to increase the exposure of your brand, increase engagement,
and drive traffic to your Facebook Page or an external website or sales page.

4. 3
CMO’s GUIDE TO FACEBOOK ADVERTISING
You can use Facebook Ads to:
◌ To increase your fan base
◌ Get Brand exposure
◌ Increase Sales/Conversions
◌ Demand Generation
◌ Promote online or offline events
◌ Advertise local businesses
◌ To sell a product, program, or service with an external website or sales page
◌ Lead generation
Marketers across industries are leveraging the paid social medium to identify and discover buyer
behaviour and intent.
TITLE: 2013 MARKETING BUDGET ALLOCATION
Source: Forrester

5. 4
CMO’s GUIDE TO FACEBOOK ADVERTISING
FACEBOOK AD UNIT TYPES
Facebook offers several ad units to for business to reach their target audience:
Standard Ad
A standard ad is the traditional Facebook ad
you find on the right hand side across the site
on dedicated ad placements on Facebook.
Page post ad
Page post ads are page posts that are
sponsored in order to increase their reach
Sponsored Results
Sponsored results are sponsored search
results, and appear in the type ahead at the
top of the Facebook interface.
Promoted Posts
Promoted Posts allow you promote anything
you can create through the sharing tool:
status updates, photos, videos, offers, and
questions.
Page Like Ads
Like Ads, are similar to Standard Ads, but are
designed to drive traffic to a Facebook Page,
App, or Event.

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CMO’s GUIDE TO FACEBOOK ADVERTISING
GETTING STARTED: CREATING FACEBOOK ADS
Facebook lets you create ads to your fan page or to your website. It provides an
intuitive interface for quick ad generation and deployment. Facebook ads are still
in a nascent stage, hence there are no established Ad platforms and all ads need
to create through the Facebook interface.
STEP 1: SELECTING THE AD UNIT
STEP 2: SELECT INTERESTS AND CATEGORIES

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CMO’s GUIDE TO FACEBOOK ADVERTISING
STEP 3: ADVANCED TARGETING
STEP 4: BID MANAGEMENT

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CMO’s GUIDE TO FACEBOOK ADVERTISING
KPIs AND METRICS
Frequency
How many times has your ad been delivered to the average Facebook users in your target
audience?
Exposure Rate
The percentage of the entire target audience your brand is actually reaching and exposing to
your message.
Click through Rate
The percentage of people clicking on the ad to the total number of impressions.
Conversion Rate
The percentage of the entire audience that undertakes the action as defined by
the business.

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CMO’s GUIDE TO FACEBOOK ADVERTISING
INDUSTRY BENCHMARKS
Social Fresh’s survey found that respondents who work for an agency reported the highest click
through rates at 0.049 percent, while vendors and brand employees had average click through
rates of 0.041 & 0.038 percent respectively
For advertisers driving traffic to Facebook pages and apps, average CPC was $0.70. Ads
leading off-Facebook averaged $1.08 CPC.

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CMO’s GUIDE TO FACEBOOK ADVERTISING
IMPORTANT TERMINOLOGIES
Impressions : Ad impressions, or "Imp." are counted each time an ad or Sponsored Story is
shown to a user, regardless of whether the user clicks or takes any other action on the ad.
Clicks: Clicks are counted each time a user clicks through your ad to your landing page.
CPC: CPC stands for Cost Per Click. If your ads are bid on a CPC basis, you will be charged
when users click on your ads and visit your website.
CPM: Stands for Cost Per Mille or Cost per thousand Impressions. If your ads are bid on a CPM
basis, you will be charged when users view your ads, regardless of whether or not they click on
them.
CTR: Click Through Rate - is the number of clicks your ad receives divided by the number of
times your ad is shown on the site (impressions) in the same time period
Frequency: Frequency tells you, on average, how many times each person saw your ads or
Sponsored Stories
Reach: Reach is the number of individual people who saw this ad during the dates selected.
This is different than impressions, which includes people seeing your ad multiple times.
Target Audience: is the number of people your targeting can reach, like the estimate you see in
the self-serve ad creation flow.
Social Impressions: The number of times your ad was shown with social context (i.e. with
information about a viewer's friend(s) who connected with your Page, Place, Event, or App).
Social reach: tells you how many people saw your ad or Sponsored Story with the names of
their friends who had already liked your Page, RSVPed to your event, or used your app.

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CMO’s GUIDE TO FACEBOOK ADVERTISING
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