Ecommerce cheat sheet of 5X terms you need to know for Facebook ads

Cheat sheet of 60 ecommerce terms you need to know for advertising on Facebook

Let’s be honest; creating Facebook ads is not easy and it can be very complicated when you’re just starting off. There are a lot of details that go into making an ad. Tasks such as creating the audience or coming up with copy, and the jargon can be very confusing. 

We want to set you up for success with your Facebook and Instagram ads. That’s why we’ve compiled a list of common terms that come up at each stage of the marketing funnel. We will also elaborate on how to apply them to your everyday advertising. 








1. Top of funnel

The top of the marketing funnel is where you should be focusing on generating leads and introducing your brand to cold audiences who are unaware of your products. Here, your ads should not focus on selling to the consumers, rather should focus on demonstrating your brand’s value. Keep in mind this is also the first stage of the customer journey (awareness).

2. Middle of funnel

In the middle of the marketing funnel, your focus should be on building trust with your consumers as they move through the marketing funnel. At this point, your audience is interested in your products, but they need to know more about them to take action. Your advertisements here should show how your products can solve your audiences’ problems. Showing social proof in your ads through reviews or testimonials can also help with credibility and gaining trust. This is the second stage of the customer journey (consideration).

3. Bottom of funnel

The bottom of the marketing funnel is when your consumers start to make conversions. You’ve gained their trust and they’re interested in purchasing your products. Here your advertisements should offer motivation towards purchasing by creating a sense of urgency, offering a discount, or bundling products. This is the third and final stage of the customer journey (purchase).

4. Prospecting

Prospecting occurs when you begin searching for and identifying potential customers that would be interested in purchasing your product. When you’re prospecting it’s helpful to have an idea of who you want to target or who is interested in buying your product. Your advertisements should use impactful images and texts that will generate curiosity in your brand.

5. Retargeting

The goal of retargeting is to reach back out to past visitors who have interacted with your products, store, or Facebook and Instagram page in some way. This offers the opportunity to drive more traffic to your website from those who may have viewed a product or abandoned their shopping cart. You will use the retargeting strategy in the middle and bottom of your advertising funnel.

6. Discovery Campaign

The goal of a discovery campaign is to help potential customers begin their customer journey. The ads in this campaign should generate interest in your brand. They should also connect on an emotional level by introducing your brand and showcasing your unique selling points. The audience in this campaign will include lookalike audiences and interest-based audiences (check the audience section for those definitions)..

7. Trust building campaign

The main objective of a trust-building campaign is to educate your potential customers on the benefits of your products while building trust and engagement. The ads show in this campaign highlighting the quality, materials, usefulness, or production of your products. The audience in this campaign should be composed of people who are aware of your store but need to learn more about your brand before they’re ready to purchase.

8. Purchase push campaign

Purchase push campaigns are for your consumers deep in your marketing funnel. These consumers are interested in your brand and products. This campaign retargets your most interested visitors. It also keeps your products top of mind to encourage conversions with personalized catalog ads. The audience to target in this campaign are those who have been made aware of your store, and viewed your products, but need some encouragement to follow through on their purchase.

9. Cross-Selling

When you cross-sell to your consumers you are showing them products from a different set than the one they purchased in. This can be useful to expose your consumers to more related products from your brand that they would consider purchasing.

10. Upselling

Upselling is a great way to earn more profit from your consumer by suggesting products from a different product set that typically has a higher value. While you are suggesting a different product, it’s still important to make sure this product is relevant. It should not just a random product from your store.


11. Customer journey

The customer journey is a framework for gaining a better understanding of the different stages your consumers pass through as they move towards making a purchase. This includes the following stages: discovery, consideration, and purchase. It’s important to consider the customers’ journey when you’re making advertisements. People at different stages need to see ads that are relevant to their position. For example, someone at the end of their customer journey does not need to see an ad introducing them to the brand they just purchased from.

12. Customer journey map

A customer journey map is a tool to use when you need to better visualize your customers’ interactions with your ads. On the map, it’s important to ask yourself questions and take notes at each stage. This is in order to produce better ads and even develop a successful Facebook ad strategy.

13. Funnel

A funnel is a framework that helps you focus on your customers as they journey towards purchasing your product. The funnel is another method of simplifying the customer journey. It takes note of each customer’s decision process and the steps they take in each funnel. When you carefully analyze your funnel you have the potential to drive sales, increase brand awareness, and gain loyal customers.

14. Segmentation

Audience segmentation is a strategy used to identify and define subgroups in your target audience to deliver a better-suited message in your advertising. Segmenting helps you craft stronger connections with your audience by showing them messages that are relevant to their segmentation criteria such as demographics or geography.

15. Target audience

Your target audience is a group of consumers who are the most likely to engage with your products. It’s important to define your target audience early on when you’re creating advertisements. This is so that you’re not wasting effort or budget showing ads to people who aren’t interested in your products. One way to determine your target audience is to create buyer personas based on your previous customers. For the best results, try testing your target audience with different Facebook audiences to see which performs better. 

16. Lookalike audience

A lookalike audience is an audience made based on people who have previously purchased, added to cart, or viewed your store’s content. These audiences are helpful in defining your top of funnel prospecting audience more precisely. For beginners, we suggest building one lookalike audience and one interest based audience.

17. Interest based audience

An interest based audience is an audience created based on the common interests of your target audience. This audience helps you to discover new potential audiences, introduces your brand to cold audiences, and brings new visitors to your online store. Additionally, interest based audiences help you target your audience more accurately. For beginners, we suggest building one lookalike audience and one interest based audience.

18. Automatic lookalike audience

An automatic ad audience is created when the optimal lookalike audience source is chosen and continually optimized to prioritize events at the bottom of your funnel as your store collects more lookalike audience data. Brainity exclusively offers this feature when you are creating your audience. 

19. Facebook engagement

An audience created from Facebook engagement is made up of people who have visited or interacted with your profile, content, or ads on Facebook. You can use this as a source for information when creating your lookalike audience.

20. Instagram engagement

An audience created based on Instagram engagement is made up of people who have visited or interacted with your brand’s profile, content, or ads on Instagram. You can use this as a source for information when creating your lookalike audience.

21. Audience targeting

Audience targeting is a practice that helps you define which audience you are targeting in your campaigns. As we’ve discussed, different campaigns will target different audiences. This is to show your consumers relevant ads depending on the stage they’re in. When you are practicing audience targeting it is helpful to also define which audiences to exclude.

22. Hot audience

A hot audience consists of people who have already converted and gone through the marketing funnel entirely. They are very familiar with your brand and products. Regardless, they still need to see advertisements to keep your brand top of mind. Show this audience ads that keep them updated on your brand such as announcements for new products.

23. Warm audience

A warm audience has already heard of your brand and products, but need extra motivation towards purchasing. This audience needs to be shown content that will sweeten the deal for them such as discounts or free shipping for items they may have left in their cart or interacted with previously.

24. Cold audience

A cold audience is composed of people who have never heard of your business but may be interested in purchasing your products. These are people who have similar problems as your established target audience but need to be introduced to your brand. You can target your cold audiences at the top of your marketing funnel, then begin building their trust in the next stage of the marketing funnel.


25. Call to action

A call to action is very straightforward. It is a phrase, button, link, etc that guides consumers towards the next steps following a message from your brand. Some examples of a call to action include “Shop now” or “Try it for free” or “Learn more”.

26. Copywriting templates

Copywriting templates are headlines or text that can help you write better ads. These templates are customizable so you can tailor the message to your brand, and usually found in an ad library.

27. Ad library

An ad library is a searchable resource for copywriting templates across a variety of industries. Ad libraries are great to use if you are starting out and need a little inspiration writing ad copy. Brainity’s ad library is home to 500+ ad copy examples in English and Spanish and including seven different themes.

28. Intro cards

An intro card helps to retarget your audience with a specific message that appears before the products they have recently viewed. Intro cards work very well in a carousel ad and contribute to higher click through rates. These are available in the bottom of the funnel. Be cautious, intro card images can only be 20% text or Facebook will reject them.

29. Product sets

A product set is a subgroup of items featured in your ads from your catalog. You can also create product sets to show off items from your catalog in dynamic or carousel ads.

30. Product filtering

Product filtering is when you determine which of your product goes into the product set you created using a filter. For best practices, you should filter your products using multiple broad categories.

31. Dynamic ads

Dynamic ads are advertisements that change automatically to adapt to your message to specifically target each consumer. These ads ensure that each consumer sees the most effective advertisement for them. It’s a good idea to test your dynamic ads. Especially if you’re not sure what message might resonate best with your audience. Don’t be afraid to try several image and text combinations.

32. Carousel ads

Carousel ads are advertisements that allow you to show multiple images in the same ad. Your potential customers will be able to scroll through your ad to see multiple products that could interest them. Though this type of ad might take more time to create, it’s worth it to give more exposure of your products to someone who shows interest in purchasing.

If you need a refresh or you’re just starting out, we’ve compiled a list of terms that you need to know when advertising for your ecommerce business.


33. Ad spend

Your ad spend is the amount of money you spend on advertising to promote your brand and product. It’s important to distribute your ad spend across each stage of the advertising funnel. With a well-balanced budget, you will know how much to spend based on performance.

34. Automatic budget balancing

With automatic budgeting, a company, such as Brainity, will automatically configure your budget for you. When you set your monthly budget, it’s calculated for daily spending, and the money is moved depending on the condition of each stage in the marketing funnel. With your daily spending calculated, your money is distributed to maximize performance throughout your entire funnel.

35. Advanced budget configuration

Advanced budget configuration puts your budgeting in your hands. You can quickly move your budget in between the top, middle, and bottom of your advertising funnel as you see fit. With this manual option, it’s important to monitor your funnel and ensure that appropriate spending is happening at each stage. For example, if your bottom funnel is outperforming your top funnel, it would be a good idea to move money from the top funnel to be there.

36. Break-even

Break-even is the point when your costs start equaling revenue. For your advertising efforts, this happens when the cost to acquire new customers begins equaling a positive return on investment.


37. Link clicks

As the name suggests, total link clicks are a total of all clicks on the links in your advertisement. You can use this metric to measure your audience interests generated from the ad. You could also compare total link clicks to other metrics to, for example, determined how many people who clicked your ad reached your website.

38. Page views

Page views are generated from the total amount of times your website traffic, consumers visiting your website, browse a particular page on your website. You can use this metric to determine which pages on your website are most popular and which need to be revised to better attract customers. 

39. Content views

Content views help to determine how many people are engaging with specific pages and your website overall. Calculate this metric by counting view content events tracked by advertising tools and attributed to your ads.

40. Adds to cart

Adds to cart is the percentage of visitors that place a minimum of one item in their cart during a session on your website. This metric helps to keep track of the success of your product selection. It can also reveal where you need to improve to decrease add to cart abandonment. To calculate your add to cart rate, divide your number of sessions with cart items viewed by the total number of sessions.

41. Cost per…

Your “cost per” metric is used to determine the average costs of your website components. A few important ones to keep in mind include cost per content view, cost per add to cart, cost per purchase, and cost per click. These can be calculated by taking the total cost and dividing it by the specific metric. 

42. ROI (return on investment)

Return on investment, or ROI, is a metric used to measure how well an investment is performing. This is calculated by dividing the current value of the investment by the cost of the investment.

43. ROAS (return on ad spend)

ROAS, or return on ad spend is a metric that measures the revenue your business earns for every dollar spent on advertising. Calculate your ROAS by dividing the revenue from your ad campaign by the cost of your ad campaign.

44. Gross profit per order

Your gross profit per order is a measure of how much your business is making after deducting costs associated with selling products (such as advertising costs). To calculate this, use the formula (Price – Cost) / Price.

45. Conversions

Conversions happen when your potential consumers become paying customers. Think of them as the goals you’re looking for such as leads, sales, pre-order etc. 

46. Conversion event

A conversion event is the interactions your consumers have with your business that lead them to convert to paying customers. For example, your conversion events might be purchases or adds to cart. 

47. Ratios

To better forecast your campaign results, you should keep an eye on a few ratios. Ratios give you insights to how metrics are performing in relation to another and overall how effective your advertising efforts are. A few important ratios to pay attention to are your link clicks to page views, page views to content views, content views to adds to cart, and adds to cart to purchase. 

48. KPI (key performance indicator)

Key performance indicators, or KPIs, are goals you set to help you track and measure the success of your ads or campaigns. Your KPI should be quantifiable, measurable,  and made with a specific, desired result in mind.

49. CTR (click through rate)

Your CTR, or click-through rate is a metric that measures your campaign performance. It also measures how successful your advertising is by revealing how many times visitors click on links in your ad. You can calculate your click-through rate by dividing the number of ad clicks by the number of ad impressions. For a percentage, multiply this number by 100.

We recommend bookmarking this blog and coming back to it however often you need to. There’s no shame in needing to refresh your memory every once in a while.

How Brainity takes the guesswork out of Facebook ads

Just starting out? We know that advertising on Facebook comes with a learning curve and can become increasingly complex as you work to build campaigns and strategies. With that being said, your 50th term is…Brainity! 

Brainity is a platform that helps ecommerce businesses implement advanced ad strategies with little manual oversight. With advanced AI, we easily make intelligent, engaging ads that attract customers by showing them relevant ads at the right time. 

You can easily prospect and retarget with Facebook and Instagram ads all on autopilot. Try Brainity risk-free for 14 days and see how easy it is to grow your business. 

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