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Study Guide: Digital Marketing and Growth: Paid Advertising and SEM - Social Media Advertising, Facebook/Instagram, LinkedIn, TikTok Ads
Source: https://www.fatskills.com/digital-marketing/chapter/digital-marketing-and-growth-paid-advertising-and-sem-social-media-advertising-facebookinstagram-linkedin-tiktok-ads

Digital Marketing and Growth: Paid Advertising and SEM - Social Media Advertising, Facebook/Instagram, LinkedIn, TikTok Ads

By Fatskills Exam Guides Team — the exam nerds behind 28,500+ quizzes and 2.1M practice questions across 500+ global exams.

⏱️ ~5 min read

What This Is

Social?media advertising is the practice of paying platforms like Facebook/Instagram, LinkedIn, and TikTok to show your creative to a precisely?targeted audience. It sits in the consideration-conversion stages of the funnel, turning browsers into leads or buyers.
Example: A SaaS startup runs a LinkedIn Lead?Gen form to capture CTO?level contacts, while an e?commerce brand uses TikTok video ads to retarget shoppers who abandoned their carts and pushes them back to checkout.


Key Terms & Metrics

  • CTR (Click?Through Rate): Clicks ÷ Impressions ×?100. Good range: 1.5?3% on Facebook, 0.5?1% on LinkedIn, 2?4% on TikTok.
  • CPC (Cost?Per?Click): Total spend ÷ Clicks. Aim for <$0.80 on Facebook, <$2 on LinkedIn, <$0.30 on TikTok (depends on industry).
  • CPM (Cost?Per?Thousand Impressions): Total spend ÷ (Impressions/1,000). Benchmark: $5?$8 on FB/IG, $6?$10 on LinkedIn, $4?$6 on TikTok.
  • CPL (Cost?Per?Lead): Total spend ÷ Leads generated. Target $30 for B2B LinkedIn, $10 for B2C Facebook.
  • ROAS (Return on Ad Spend): Revenue ÷ Ad spend. A ROAS?4:1 (400?%) is typically profitable.
  • CAC (Customer Acquisition Cost): Total marketing & sales spend ÷ New customers. Use this to compare paid?social efficiency against other channels.
  • Frequency: Avg. number of times each person sees your ad. Keep 2?3 on FB/IG to avoid ad fatigue; higher frequency can be okay for retargeting on TikTok.
  • Lookalike Audience: A group created by the platform that mirrors the behavior of your best customers. Great for scaling after you have 1000 seed users.
  • Pixel / Conversion API: Code (or server?side) that sends event data back to the platform for optimization and reporting. Install via Meta Events Manager, LinkedIn Insight Tag, or TikTok Pixel.
  • CBO (Campaign Budget Optimization): Let the platform allocate budget across ad sets automatically; useful when you have 3?4 ad sets with similar performance.
  • Ad Relevance Score / Quality Ranking: Platform’s rating of how useful your ad is to the target audience. Aim for 7/10 on FB/IG, 8/10 on LinkedIn.

Step?by?Step / Process Flow

  1. Set Up Tracking – Install the Meta Pixel, LinkedIn Insight Tag, and TikTok Pixel; verify events in GA4 (Conversions-New Event).
  2. Define Objective & Audience – Choose a campaign goal (Lead?Gen, Conversions, Traffic). Build audiences:
    Cold (interest?based), Warm (website visitors 30?180?days), Hot (cart abandoners).
  3. Create Creative & Copy – Follow platform specs (e.g., FB image?=?1080?×?1080?px, TikTok video?=?9:16, 15?sec). Write a clear CTA and include a strong value prop.
  4. Launch with A/B Test – Duplicate the ad set, vary one element (headline, video thumbnail, CTA). Use CBO to let the algorithm spend on the winning ad set.
  5. Monitor Core Metrics Daily – Check CTR, CPC, Frequency, and ROAS in the platform dashboard; flag any ad set with Frequency?>?3 and ROAS?<?2.
  6. Optimize & Scale – Pause under?performing ads, increase budget on winners (20?% daily), expand Lookalike size, and add new creative every 7?10?days.

Common Mistakes

  • Mistake: Targeting too broad (e.g., “All adults 18?65”).
    Correction: Layer interests, behaviors, and custom audiences to narrow the pool; a tighter audience raises relevance and lowers CPC.

  • Mistake: Ignoring the pixel and relying only on platform?reported conversions.
    Correction: Pair the pixel with GA4 to capture cross?device conversions and get accurate attribution.

  • Mistake: Running the same creative for weeks without refresh.
    Correction: Rotate assets every 5?7?days; ad fatigue shows as rising CPM and falling CTR.

  • Mistake: Setting a single, high daily budget and letting the algorithm spend it all on one ad set.
    Correction: Use CBO with multiple ad sets or manually cap budgets to test creative before scaling.

  • Mistake: Forgetting to enable conversion optimization (e.g., “Landing Page Views” instead of “Purchases”).
    Correction: Choose the event that matches your business goal; the platform learns faster when optimizing for the final action.


Marketing Interview / Practical Insights

  1. “How do you decide between Facebook and LinkedIn for a B2B lead?gen campaign?” – Talk about audience density, cost differences, and intent signals (LinkedIn’s job?title targeting vs. Facebook’s interest?based targeting).
  2. “Explain the difference between a pixel and a conversion API.” – Pixel fires from the browser; API sends server?side events, reducing ad?block loss and improving data accuracy.
  3. “What attribution model would you use for a multi?touch social campaign and why?” – Usually data?driven (GA4) or linear to credit each touch; explain why last?click undervalues upper?funnel awareness ads.
  4. “When would you use a brand?focused ad vs. a performance?focused ad?” – Brand ads prioritize reach and CPM, performance ads prioritize CPA/ROAS; discuss when you need top?of?funnel awareness vs. direct response.

Quick Check Questions

  1. If your CPC is $1.20 and your conversion rate is 4?%, what is your CAC?
    Answer: $30.?Explanation: CAC?=?CPC ÷ Conversion Rate-$1.20 ÷ 0.04?=?$30.

  2. Your TikTok campaign spent $2,500, generated $12,000 in revenue. What is the ROAS?
    Answer: 4.8?×? (or 480?%).?Explanation: ROAS?=?Revenue ÷ Spend-$12,000 ÷ $2,500?=?4.8.

  3. A LinkedIn ad set has 150 clicks, 12,000 impressions, and a CPM of $7. What is the total spend?
    Answer: $84.?Explanation: CPM?=?$7-Spend?=?($7 × 12,000) / 1,000?=?$84.


Last?Minute Cram Sheet (10 one?liners)

  1. FB/IG image size: 1080?×?1080?px, 20?KB for fastest load.
  2. LinkedIn ad character limit: 150?chars for headline, 300?chars for description.
  3. TikTok video length: 9:16, 15?sec max for in?feed ads (30?sec for brand takeover).
  4. Frequency trap: >?3 on FB/IG = ad fatigue; >?5 on TikTok = diminishing returns.
  5. CBO tip: Increase budget in 20?% increments per day to keep learning phase stable.
  6. Pixel vs. API: Use both; API fixes “iOS 14+ privacy” data loss.
  7. GA4 attribution default: “Cross?channel data?driven” – gives credit to every touch.
  8. Lookalike size rule: 1?% of the target country = most similar; 2?5?% expands reach but lowers similarity.
  9. CTR benchmark: 2?% FB, 0.6?% LinkedIn, 3?% TikTok – anything below is a signal to improve creative.
  10. Budget allocation myth: “Spend all on one ad set”-algorithm over?optimizes; split budgets across 3?5 ad sets for better learning.