Facebook Advertising Strategy. How Facebook Ad Auction Works

Facebook Advertising Strategy

How does Facebook determine which bidder wins the ad auction?

Do you wonder how Facebook’s auction determines when and where your ad will appear, or why some audiences cost more to reach than others? In this article, you will learn about Facebook’s advertising strategy. The science behind serving an ad to the right person at the right time, at the lowest possible cost per result. Let’s check out some of the Facebook advertising strategies.

There are over  3.07 billion active users monthly on Facebook. The goal of ads is to connect advertisers with the users. 100’000+ auctions are running every second which decides which ads to show to which people. So how does Facebook deliver your ads in the newsfeed?

There are 3 main delivery auction factors

  1. Budget
  2. Bid
  3. Time Frame

If your ads are not getting enough impressions, you can do accelerated ad serving which will show your ads to every available impression that falls below your bids. But with this option, you will blow through your budget extremely quickly. So it’s better to keep it to standard bidding and reach as many users throughout the day.

Different advertisers have different goals. This means not all impressions are equal. Some impressions are more likely to deliver results than others.

Facebook Advertising objectives

It is important to understand the Facebook advertising strategy before you choose one of the above objectives. Many advertisers want clicks & traffic, they are assuming users will come to the site and convert. But it doesn’t work that way.

Do not bid for Facebook likes. You set the objective to maximize clicks not maximize conversions. So that’s the wrong objective selected in the first place! One needs to explicitly tell what objective you’re looking for.

That is good news as this AI limitation will probably keep us in business for few more years

Facebook Advertising Strategy

Facebook Advertising Strategy

If you noticed, low bids with high click-through rates will get the ads to show more than high bids and low engagement. So it pays to optimize your campaign setup and the ad image creatives. Select the right objectives at the ad set level. And set the right bids –

Many factors influence the click-through rate.

Facebook Advertising Phase

If you are running a Facebook conversion optimizer, then wait for a minimum of 25 conversions for the Facebook bidding to work in your favor. More data makes the system easier to learn and optimize

Finally, Facebook Ad Relevance Score which you can check in the ads reporting. You can also monitor positive and negative feedback. Negative feedback means your ad relevance can hurt and your ads can show less or you can pay high for the impressions.

If you’re in to get maximum reach for your ads, running ads on Facebook, Instagram, and audience networks can get you the best bang for the buck as there is more inventory to choose from. This is also called best response bidding

Another problem can be high text in images, or high bounce rates on your website can also affect your relevance score and impact performance. We have noticed many advertisers choose the wrong objective which costs them too much to show ads and no results

There is much content online that talks about Facebook marketing tips for small businesses. Make sure to check what works for you. Facebook ads and algorithms keep changing all the time.

To improve your chances of winning an ad auction, it’s crucial to have a good understanding of your target audience and competitors. Additionally, optimizing your bids, using ad scheduling, and regularly testing and refining your ads can significantly enhance your chances of winning auctions and achieving your advertising goals.

What we have learned is that one need not optimize Facebook ads to get page likes or engagements. It rather is a direct action like traffic to the website. The website better is mobile optimized as major traffic is sent via mobile devices. Your website is where conversions of the action happen.

There are many Facebook Advertising objectives available. We also offer Facebook advertising services.

Also Read :  Facebook Page Verification

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