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Sams Teach Yourself Facebook by Bud E. Smith

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Lesson 12. Pricing and Creating Your Ad Campaign

In this lesson, you learn about Facebook Ad costs, key terms for online advertising, and how to create your Ad on Facebook.

Understanding What You Pay

The framework for how online advertising works has largely been set by Google. Google’s AdWords service allows advertisers to bid on general search terms, such as “ice cream,” and narrow ones, such as “ice cream San Francisco.” It also allows you to bid on the term “ice cream” within a specific geographic area, such as certain ZIP codes in San Francisco.

Facebook’s approach is quite similar to Google’s, but Google’s is more mature and generates nearly all of Google’s tens of billions of dollars in annual profit. Facebook, which started much later, ...

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