Certificate Exam Flashcards

1
Q

A/B test

A

A test that allows you to conduct experiments
that compare multiple targeting groups
or campaigns by splitting audiences into
randomized and mutually exclusive groups.

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2
Q

Advanced matching

A

A Facebook pixel feature that allows websites
to pass additional site-visitor information (such
as email addresses or phone numbers).

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3
Q

Alternative
hypothesis

A

A hypothesis contrary to the null hypothesis, that
there’s a relationship between two measured
phenomena or an association among groups.

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4
Q

API (Application
programming
interface)

A

Defines how software components communicate.

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5
Q

Attribution

A

The practice of assigning value to various
marketing efforts.

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6
Q

Attribution model

A

Determines how credit is given to touchpoints
for a conversion. The logic that determines how
credit is given to touchpoints for a conversion.
The attribution model logic can be based on a
rule or set of rules, or a statistical model.

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7
Q

Attribution window

A

The finite period of time during which
conversions can be credited to a particular ad.

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8
Q

Auction

A

An ad buying methodology in which the ads run
based on the maximum bid and performance.
Ads compete against each other in this process
and the system determines the ones most likely
to be successful to be displayed.

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9
Q

Bid

A

The amount an advertiser is willing to pay to
achieve their desired outcome.

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10
Q

Bid cap

A

A bid strategy that enables advertisers to
set a maximum bid Facebook can use in each
auction.

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11
Q

Bid pacing

A

Adjusts a bid or which auctions to enter based
on how much budget and time are left for an
ad set.

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12
Q

Bid strategy

A

A setting in Ads Manager and Reporting that
helps Facebook determine how to spend a
budget to compete in a Facebook auction.

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13
Q

Brand lift

A

Measurement product that uses experimental
design (randomized control trials) to detect
brand impact that might be caused by ads run
on Facebook.

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14
Q

Budget allocation

A

The amount of marketing expenditure allotted
foreach marketing activity

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15
Q

Buying type

A

Options in Ads Manager that determine the
method by which you purchase ads on Facebook,
either through auction or reach and frequency.

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16
Q

CTR

A

The number of times an ad or a link to a web
page is clicked, compared with the number of
times it’s displayed.

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17
Q

CTR Acronym

A

Click-through rate

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18
Q

Control group

A

The group in an experiment or test for which
none of the factors in the test are variable. It’s
used as a benchmark to measure the effect of
the test.

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19
Q

Conversion efficiency

A

How effectively your ads drove the interactions
you’re measuring.

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20
Q

Conversion Lift

A

A Facebook product that uses randomized
control trials (RCTs) to measure the number
of incremental conversions that result from
Facebook ads.

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21
Q

Conversion lift

A

A marketing metric that quantifies the number
of additional conversions that result from
Facebook ads.

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22
Q

Conversion lift
percent

A

The percent difference in conversions between
the people who did and didn’t see your ads
during a test.

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23
Q

Conversion rate

A

The (estimated) number of times a link on a web
page is clicked, compared with the number of
times it’s displayed.

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24
Q

Conversion window

A

Period of time considered between seeing an ad
and acting upon it toward the ad’s main goal, be
it generating a lead or making a purchase.

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25
Cost cap
A bid strategy that enables advertisers to set a maximum average cost per optimization event for an ad set. Facebook will keep the average cost as far below that amount as possible, but keep showing ads until it’s reached.
26
CPA Acronym
Cost per action
27
CPA
The cost to the advertiser each time an ad prompts an action.
28
CPC Acronym
Cost per click
29
CPM Acronym
Cost per thousand impressions
30
CPC
The cost to the advertiser each time an ad is clicked.
31
CPM
Also known as “cost per mille,” it’s the average cost for 1,000 impressions of an ad, or the average revenue received for 1,000 impressions of an ad on apps or websites.
32
Cross-channel measurement
Indicates outcomes related to advertising across numerous online or offline channels, such as Facebook and television.
33
Custom event
A logged action based on a specific action you want audiences to take on your website, app or offline.
34
CRM Acronym
Customer relationship management
35
CRM
A tool that enables businesses to manage customers’ contact information and interactions through the customer life cycle.
36
Daily budget
The average amount you’re willing to spend on an ad set or campaign every day.
37
Data analysis
A process of inspecting, cleansing, transforming and modeling data with the goal of discovering useful information, informing conclusions and supporting decisionmaking. 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.
38
Data source
A tool, connection, piece of code or other object that collects information, such as Facebook pixel, Facebook SDK or offline conversions. The information can be used for measurement and analysis.
39
Dependent variable
A variable whose value depends on that of another.
40
Event
A logged action that people take on your website, app or offline, usually used for capturing and measuring ad performance.
41
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.
42
Experimental method
In marketing research, a measurement method that shows different types of ads to separate groups of people in a controlled manner.
43
Facebook Attribution
A Facebook measurement product that provides advertisers with cross-platform, crosschannel, cross-device, multi-touch attribution performance reports for ad campaigns.
44
Facebook’s data-driven attribution
The process of determining credit for touchpoints on a conversion path based on their estimated incremental impact and statistical modeling.
45
Facebook pixel
A piece of code installed on a website that captures website events.
46
First-party data
Data a brand collects directly from its customers (for example, website activity data, sales data, and so on). Data a brand collects directly from its customers (for example, website activity data, sales data, and so on).
47
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.
48
GRP Acronym
Gross rating point
49
Gross rating point
A unit of measurement of audience size for TV advertisements. GRP is used to measure exposure to one or more programs or commercials, without regard to multiple exposures of the same advertising to individuals.
50
Holdout test
Measures the total conversions caused by your Facebook ads.
51
Hypothesis
A supposition or proposed explanation made on the basis of limited evidence. Used as a starting point for further investigation.
52
Impression
A single instance of an ad or piece of content (such as a post) appearing on screen.
53
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.
54
ITT Acronym
Intent to treat
55
ITT
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.
56
Inter-channel budget
The allocation of budgets across different channels.
57
KPI Acronym
Key performance indicator
58
KPI
A metric selected to evaluate the success of a campaign or ad.
59
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.
60
Lifetime budget
The amount you’re willing to spend over the entire runtime of your ad set or campaign.
61
Lift solutions
A platform for running experiments on Facebook ads and measuring the incremental impact of ads on business outcomes.
62
Liquidity
In the context of machine learning, the concept of allowing Facebook to determine the best placement, ad set budget and bids for a campaign.
63
Lowest-cost bid strategy
The bid strategy that provides the highest volume of conversions for the available budget.
64
Machine learning
A discipline that uses science, information and computer code to automatically predict certain outcomes based on discovered patterns that are not explicitly programmed.
65
MMM Acronym
Marketing mix modeling
66
MMM
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.
67
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).
68
Multi-touch attribution
The process of considering credit for each touchpoint on a conversion path.
69
Natural experiment
An observational study in which subjects fall into either the exposed or non-exposed groups based on a naturally occurring event.
70
Nested test
An experimental method in which the treatment group for one test is subdivided into a control group and a secondary testing group.
71
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.
72
Observational method
A way of collecting data through observing.
73
Offline conversions
Allow you to measure how much Facebook ads lead to offline outcomes, such as in-store purchases, phone orders, bookings and more.
74
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), Facebook logs the opportunities (uniquely identified by tags like, userId, studyId, dynamicHoldoutId and isContro) to scribe tables.
75
Pacing system
A component of ad delivery whereby Facebook measures and projects a campaign’s end date to ensure a budget is spent as evenly as possible over the lifetime of an ad set.
76
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.
77
Parameter
Included alongside events to measure additional information about the product or service type people engage with on an app or website.
78
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.
79
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).
80
RCT Acronym
Randomized control trial
81
RCT
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.
82
Reach
The number of people exposed to a medium at least once during a given period.
83
Reach and frequency
A method of buying ads on Facebook that allows advertisers to predict the audience size reached and control the average frequency that the audience is exposed to their ads.
84
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.
85
ROAS Acronym
Return on ad spend
86
ROAS
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.
87
ROI Acronym
Return on investment
88
ROI
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.
89
Rule-based attribution model
Different attribution models distribute different amounts of credit for conversions across ads. They can be based on a rule or a set of rules, or a statistical model. Rule-based models let you select the rule that will determine how conversions should be attributed to different touchpoints. Single-touch models give credit to only one touchpoint, while multi-touch models give credit to multiple touchpoints in the consumer’s conversion path.
90
Sales lift
The additional revenue caused by ads in a test, when compared to the test and control groups.
91
SEM Acronym
Search engine marketing
92
SEM
The practice of marketing a business using paid advertisements that appear on search engine results pages.
93
Single-cell test
A test with one test group, where group A is shown the ad and group B is not.
94
SDK Acronym
Software Development Kit
95
SDK
A piece of code installed on an app that captures app events.
96
Statistical attribution model
An attribution model that uses algorithms to determine credit for each touchpoint.
97
TRP Acronym
Targeting rate point
98
TRP
The number of impressions bought per 100 people in an ad’s target audience.
99
Test duration
How long a test runs for, from beginning to end.
100
Third-party data
Data collected by a party that does not have a direct relationship with the user (such as DMP).
101
Total value calculation
Advertiser Bid x Estimated Action Rates + User Value
102
User value
A prediction of how engaging or relevant a user may find an ad based on available signals.
103
Variable
A quantity or other piece of data that can assume different values.
104
Visit
In Facebook Attribution, the number of times a person loaded your website from any channel (including paid, direct, organic and untracked channels), as recorded by the Facebook pixel or SDK.
105
S M A R T Goals
specific, measurable, achievable, relevant and time-bound,
106
A/B test
A test that allows you to conduct experiments that compare multiple ad sets by splitting audiences into randomized and mutually exclusive groups. Testing multiple campaigns against one another to see which tactical approach produces the best results based on your KPIs.
107
Limitations of A/B Tests
* Does not assess incremental impact. * Reliable only if the confidence level is at least 75%. * Some A/B tests do not include control groups, only randomized test groups. In these cases, they do not measure causality or the incremental value of a strategy, and therefore are not recommended when strategy A has a different baseline conversion rate than strategy B (such as audience). * Not all tests are appropriately powered with adequate conversion numbers in each group.
108
Randomized control trial (RCT)
RCTs test a hypothesis by introducing a treatment, studying the effects and determining the impact of your ad. Ultimately, an RCT can help you decide how much to spend on each marketing channel to maximize your results. It can infer causality.
109
Limitations of RCT
Limitations * Tests may not be set up with sufficient statistical power. * The treatment variable may not always be isolated. * Some tests will have effects beyond initial user interaction. * They can’t account for the unknown (e.g., people use cash or make other untraceable purchases). * Test and control groups might have outliers. * Outcomes might be difficult to replicate.
110
Observational method
A measurement method in marketing research that observes the effect of ads on people without changing who is exposed to the ads.
111
Limitations of Observational method
* Not experimental, so causal inferences cannot be made. * Difficult to perform strategy comparisons in a controlled way. * Might deliver biased outcomes. * Does not take into consideration contextual variables that may affect the final outcome.
112
Cross-channel reach reporting
Measures how channels work together to generate business outcomes. Channels include but are not limited to email, TV, direct mail, Facebook and paid search.
113
Limitation of Cross-channel reach reporting
* Metrics vary by channel. * Cross-channel reach reporting can be challenging, because not all channels share touchpoint/reach data. * Limitations vary by specific solution. In general, limitations arise when metrics are not comparable or likefor- like data is not available. * Reach does not always correlate with brand and conversion business outcomes.
114
Attribution
The process of determining credit for each touchpoint on a consumer’s path to conversion. Multi-touch attribution models, or MTAs, allocate value to more than one touchpoint in a consumer’s path to conversion. Data-driven attribution is the process of determining credit for touchpoints on a conversion path often based on historical data and statistical modeling.
115
Attribution Limitations
* Statistical attribution models can be costly to access in some cases, while others are limited to specific channels. * Cross-device limitations on cookie- or webbased systems. * Many tools do not have access to the full path to conversion (for example, in-app impression data is often not shared across publishers.) * Often only includes digital channels.
116
Marketing mix modeling
A data-driven statistical analysis that quantifies the incremental sales impact and return on investment of marketing and nonmarketing activities, measuring both offline and online sales across channels.
117
Marketing mix modeling Limitations
* Can struggle to capture incremental sales where an increase is minimal. * Requires collaboration between modelers and an econometric model. * Doesn’t help with in-channel optimization. * Does not infer causality, only correlation. * Can be time-intensive to implement.
118
Lift test
Use a Lift test to measure incremental outcomes by comparing the actions of people who have seen your ad with people who haven’t. Lift tests with statistically significant results can infer causality and accurately measure incrementality, unlike proxy metrics, like clicks and likes, which are indirect approximate measurements that may not be correlated with actual business value and can result in suboptimal business decisions.
119
Single-cell test Lift Test
This option is best used to get a baseline understanding of incremental brand or conversion outcomes your campaign is currently driving.
120
Multi-cell test Lift Test
Compare two competing strategies to understand which leads to greater incrementality.
121
Nested Lift Test
In this experimental method, the treatment group for one test is subdivided into a control group and a secondary testing group. A nested test can help an advertiser to understand the incremental impact a new strategy has on a strategy that’s already under way.
122
Facebook Attribution - Strengths
Measure the performance of your ads across channels (paid vs. organic), publishers and devices. Understand your consumer’s journey to purchase. Choose from two types of models: rule-based and statistical-based. Can be a useful complement to lift tests.
123
Facebook Attribution - Limitations
Since there are a variety of attribution models, it will take time and experimentation to find the one that best fits your business. The length of the attribution window may limit results. Results may not reflect performance from all marketing efforts.
124
Facebook Attribution - Outputs
Metrics for variables related to the media channels used in marketing (paid, organic, direct) Metrics for variables that relate to the desired action (visits, conversions, sources) Return on ad spend (ROAS)
125
Brand Lift - Strengths
Measure the incremental impact your ad has on people’s perception of your brand. Can be single-cell or multi-cell. See how your campaign performs against norms for campaigns in your industry and your region. See lift by demographic breakdown (for example, age, gender). Can be performed with third-party measurement partners.
126
Brand Lift - Limitations
You need to get at least 250 responses to one poll question in order for Facebook to show results. A holdout is required for measurement.
127
Brand Lift - Outputs
Poll results Brand lift percent for all responses Brand lift percent by demographic Cost per Brand Lift Test details: a summary of your test setup Confidence levels
128
Conversion Lift - Strengths
Measure the incremental impact your ad has on people’s perception of your brand. Use intent to treat (ITT) to manage the effect of potential error in the test results and more accurately ensure comparable audiences. Can be performed with third-party measurement partners.
129
Conversion Lift - Limitations
A holdout is required for measurement. Must ensure that the test has at least 80% statistical power in order to allow for statistically significant outcomes.
130
Conversion Lift - Outputs
Conversion lift Sales lift Cost per conversion lift ROAS lift Conversion lift percent Breakdowns by demographic and attribution window Confidence levels
131
Marketing Mix Models - Sttrengths
Quantify the impact of a large set of variables on sales. Understand what influenced past sales and predict what may happen as a result of future marketing. Understand how your marketing activity impacts sales.
132
Marketing Mix Models - Limitations
Requires high-quality data. Requires collaboration between modelers and an econometric model. Doesn’t help with in-channel optimization. Does not infer causality, only correlation. Can take up to six months to fully implement.
133
Marketing Mix Models - Outputs
Marginal return associated with each marketing channel A report that details how much influence each of your marketing activities had on sales An overview of how your spending in different channels contributed to success
134
A/B Test - Strengths
Assess the correlation between different versions of your ads. Create multiple ad sets and test them against each other to see which tactical approach produces the best results. Understand which specific images, videos, placement, text and/or call to action performs best. Know which combination of variables (creative, audience, delivery optimization, product sets or placement) performs better at meeting your business goal. Understand the best allocation between full funnel stages.
135
Ideal time for an A/B Test
at least 3 days, but no longer than 30 days.
136
Single-Touch Attribution Models
Single-touch attribution models give credit to only one touchpoint.
137
Multi-Touch Attribution Models
Multi-touch attribution models take into account more than one interaction with a given media channel. They are inclusive of other models, including even credit, positional and time decay.
138
Lift %
Indicates how much your ads increased the rate at which people converted (as defined by the conversion events you chose when you created the test).
139
Confidence
percentage that represents how confident Facebook is that your ads caused conversion lift.
140
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. The null hypothesis is rejected when p < alpha and not rejected when p > alpha where alpha is determined by the analyst.
141
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). This is typically used when evaluating the goodness of fit of multiple models to determine the most accurate model.
142
Total Value
143
Budget Pacing
The aspect of pacing where we may increase budget if there’s an opportunity to get many optimization events with costs aligned with your bid strategy
144
Bid Pacing
The aspect of pacing where we adjust your bid or which auctions we enter based on how much budget and time are left for your ad set.
145
Auction Buying
Auction buying offers more choice, efficiency and flexibility, with less predictable results. Ads can be placed across Facebook, Instagram, Messenger and Audience Network
146
Reach and Frequency Buying
Reach and frequency buying lets you plan and buy your campaigns in advance, with predictable ad delivery and more control over your frequency settings.
147
Lowest Cost Bid
Select the lowest-cost bid strategy if you want to spend as much of your budget as possible without having to keep costs within a specific amount. With the lowest-cost bidding strategy, you don’t have a specific cost threshold; you prioritize spending budget over cost control. The lowest-cost bid strategy may lead to more cost fluctuation. For example, if auction competition decreases, costs may go down. If auction competition increases, costs may go up. We will work to get you the most results available for your ad set.
148
Bid Cap
Use this strategy if you want to set a maximum bid across auctions to limit the bid amount in every auction and reach as many people as possible at that bid. This bid strategy maximizes volume at a specified maximum bid cost and can increase competitiveness against other advertisers who are targeting similar audiences. If you want to control for the cost of actual results, we recommend the cost-cap bid strategy.
149
Target Cost
If you choose the target-cost bid strategy, Facebook randomly enters you into auctions using your full cost control. Some outcomes are expensive, and some are cheaper. Cost stability versus cost efficiency is the trade-off when you use target-cost bidding.
150
Cost Cap
Using a cost control with the cost-cap bid strategy lets Facebook deliver the maximum number of conversions. The cost provided is an average amount, which Facebook tries to stay under by going after the lowest cost events available. As you spend more or increase your budget, your average cost per optimization event might increase. Cost controls apply to your average cost per optimization event, so Facebook’s ad delivery system can pursue opportunities across auctions at a wider range of costs. Some optimization events cost more than your cost control. Over the lifetime of your ad set, your average cost should be at or below your costcontrol amount.