What's the correct use of dynamic Facebook UTMs for Google Analytics?

Question

This question has two parts: best practice, and issues with reporting.

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Best practice:

Right now, the UTMs that we've set up for our Facebook & Instagram advertising campaigns are dynamically generated.

Option A

We're currently using the following set up in the Facebook Ads Manager:

?utm_source={{site_source_name}}
&utm_medium={{placement}}
&utm_campaign={{campaign.name}}_{{adset.name}}
&utm_content={{ad.name}}

Option B

We've also considered splitting out the adset name into a separate URL parameter:

?utm_source={{site_source_name}}
&utm_medium={{placement}}
&utm_campaign={{campaign.name}}
&utm_term={{adset.name}}
&utm_content={{ad.name}}

However, I'm not sure if the content and term parameters are the best fit for this?

Question 1: Which one of the above is best practice?

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Issues with reporting:

With either setup, this means that in the Acquision > All Traffic > Channels report in Google Analytics, everything gets lumped under (Other):

Only therein you'll have fb and ig — separated away from other paid channels. That doesn't seem right. Facebook's help page on this didn't provide complete clarity on the matter.

Question 2: Is this set up right? Or is there a better way of using Facebook's dynamic parameters to set up UTMs according to Google's guidelines?

ad_id={{ad.id}}
adset_id={{adset.id}}
campaign_id={{campaign.id}}
ad_name={{ad.name}}
adset_name={{adset.name}}
campaign_name={{campaign.name}}
placement={{placement}}
site_source_name={{site_source_name}}

Answer 1

utm_term would usually relate to paid search advertising that is targeting searches for particular keywords such as with Google (or Bing) Searches.

If they are ad placements/display, if you use utm_medium=display, it will bucket it into the default Display channel in GA.

You can find a list of the GA default channel definitions on the following page:
https://support.google.com/analytics/answer/3297892

You can also create your own channels, or edit existing channels too, however bare in mind, the changes are not retroactive.

If it were me, I would probably use something along the lines of the following:
?utm_source={{site_source_name}}
&utm_medium=display
&utm_campaign={{campaign.id}}
&utm_content={{adset.name}}_{{ad.name}}
&placement={{placement}}
- while placement is not a utm parameter, it still offers useful information even if appended to a url