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Study Guide: Digital Marketing and Growth Paid Advertising and SEM Social Media Advertising FacebookInstagram LinkedIn TikTok Ads
Source: https://www.fatskills.com/mcat/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 FacebookInstagram 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.


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