What is Hook Rate?

Cost Per Acquisition (per purchase). Total spend ÷ number of purchases. Your target CPA = your gross profit per order — what you can afford to pay and still break even.

Campaign Budget Optimization. Meta allocates your campaign-level budget across ad sets automatically based on performance. Use CBO for scaling proven winners. Use ABO for testing — CBO starves angle variations of data during tests.

Ad Set Budget Optimization. You control exactly how much each adset spends. Essential for testing — gives equal data to every angle. Switch to CBO once winners are confirmed for efficient budget allocation at scale.

% of people who saw your ad and clicked the link to your store. Below 0.5% after $30 spend = creative/hook problem. 0.8–2% is normal. Above 2% is strong. Always use Link CTR — not “All CTR” which inflates with non-purchase clicks.

Add-to-Cart Rate. % of store visitors who add to cart. Below 3% = product page or offer problem. 5–8% is acceptable. Above 8% = strong offer-product fit. High ATC + zero purchases = checkout friction, not product problem.

% of people who watch the first 3 seconds of your video. Below 25% = hook failure. 35–50% is good. Above 50% is excellent.

7 days or 50 purchase events during which Meta builds a delivery model for your campaign. Never edit campaigns during learning — it resets the clock.

Cost Per 1,000 Impressions. The foundational cost of your metrics. High CPM means higher CPC and CPA. Never celebrate low CPM — always read it with CVR.

Average Order Value. Total revenue ÷ number of orders. Increase with bundles, upsells, and order bumps.

Lifetime Value. Total revenue a customer generates across all purchases. Changes your entire acquisition math.

Marketing Efficiency Ratio. Total revenue ÷ total ad spend across ALL channels. More honest than ROAS.

A person/company in China managing supplier relationships on your behalf. Replaces CJDropshipping at scale.

A creative that looks rough but significantly outperforms polished ads. Do not pause or “upgrade” ugly winners.

Customer Acquisition Cost. Total acquisition costs ÷ customers acquired. At scale, true CAC is always higher than platform-reported CPA.

A document specifying the hook, angle, persona, problem, product benefit, and CTA for an ad. Brief quality is the single biggest determinant of creative output quality.

Cost of Goods Sold. Product cost + shipping + payment fees per unit. Gross margin = Revenue − COGS.

Third-Party Logistics. A warehouse/fulfillment service. Relevant once you move to bulk ordering at 20+ orders/day.

The ROAS at which revenue exactly covers ad spend plus COGS. Formula: Selling Price ÷ (Selling Price − COGS − Fees).

A pre-sell landing page styled as editorial content. Warms cold traffic before the purchase ask.

Video Sales Letter. A longer-form ad (2–5 min) that builds a full case: problem, failed alternatives, solution, social proof, offer.

Conversion Rate. % of store visitors who purchase. Below 1% is concerning. 1.5–2.5% is industry average.

Average number of times each person in your audience has seen your ad. Above 3–4 = audience saturation.

Budget management technique that increases spend in profitable daily windows and reduces it during low-converting periods.

Performance degradation when the same creative has saturated its available audience. Fix: fresh creative with new angles, not more budget.

The gap between when Meta charges your card and when Shopify pays you. Use business credit cards to create 30-day float.

The actual language real customers use to describe their problems. Sourced from Amazon reviews, Reddit, TikTok comments.

The combination of elements making up your purchase proposition: product, price, shipping, guarantee, bonuses, urgency, social proof.

Automated email/SMS sequence for visitors who add to cart but don't complete checkout. Recovers 10–20% of abandoned carts.

Meta's central hub for managing ad accounts, pixels, pages, and team access. Keep a backup BM ready before you need it.