Potential reach is a metric that estimates the number of people who could see an ad on Facebook. It is based on Facebook’s understanding of the demographic information, interests, and behaviours of the people on the platform.
Potential reach is an estimate, not a guarantee, and the actual Reach of an ad may be lower or higher than the potential Reach. Potential reach is because not all people who could see an ad will see it due to factors such as ad fatigue, ad blindness, and competition for ad space.
Potential reach is a useful metric for advertisers to consider when planning and targeting their Facebook ad campaigns. By understanding the potential reach of their ads, advertisers can make informed decisions about the size and composition of their target audience and adjust their ad targeting and budget accordingly.
However, potential reach is just one of many factors to consider when planning and targeting a Facebook ad campaign. Other factors, such as the relevance and quality of the ad, the placement of the ad, and the competition for ad space, also play a role in determining the actual Reach of an ad.
Also, See: Customer Lifetime Value (CLTV / LTV)