How the auction works when Facebook ads are displayed

[ishanijerin1]

Even if you submit an ad to Facebook, it is not guaranteed that it will be displayed. Instead, the ad is displayed to each user in an auction with competing ads that have similar targeting settings, and the ad that Facebook determines will provide the greatest benefit to both the user and the advertiser is displayed to the user.

Specifically, the following three indicators are taken marketing directors email database into consideration when deciding which ads will actually be displayed:

Bid
Estimated Action Rate
Ad Quality
We will explain each one in detail.

Bid
A bid is a number you set when placing a Facebook ad, and it is the maximum price you are willing to pay per impression or click.

Naturally, the higher your bid, the more likely your ad will be displayed.

Estimated Action Rate
The estimated action rate is a numerical value that estimates the probability that a user will click or convert, calculated based on factors such as each user's attributes and the relevance of their past actions on Facebook to the content of the ad.

Since Facebook does not disclose the specific method for calculating the estimated action rate, there are no clear countermeasures. However, it is important to create ads that are easy to view, understand, and useful.

Ad Quality
Ad quality is calculated by Facebook based on a comprehensive assessment of an ad's past engagement rate, click-through rate, conversion rate, and negative reports from users.

Again, Facebook has not disclosed the specific calculation method, but it does offer a service called "Ad Relevance Diagnostic" that allows users to find out how their own ads are evaluated by Facebook.

Ad Relevance Diagnostics Overview and How to Use It
Using this, you can see whether the quality of the ads you are delivering, your engagement rate, and your conversion rate are better than those of your competitors.

However, Facebook has stated that the information obtained through this service does not necessarily correlate with ad performance, and that it is not very useful if you want to improve an ad that is already seeing some results.

So, you should only use it if you're not seeing great results with your Facebook ads and you want to find ways to improve them.

How to use the reference
ad relevance diagnostic (Facebook for Business)


If Facebook evaluates these three metrics as high, such as the estimated action rate or the quality of your ad, the cost per impression or cost per click will be reduced when your ad is actually displayed.

This means that the higher the quality of your ads, the more cost-effective they will be.

Tips for getting results with Facebook ads
In this chapter, we will introduce the knowledge and know-how we have gained from running Facebook ads for hundreds of companies in the past.

Choose the right campaign objective
As explained in Chapter 7 of this article, the goal of your campaign will determine how Facebook's AI optimizes the delivery of your ads.

Our past experience has shown that simply changing the campaign objective can actually change the delivery situation, and we have found that if you select a campaign objective that does not match the purpose of your actual advertising, you will not get the results you expect.

Therefore, before running a Facebook ad, you should first clearly determine the goal you want to achieve through the ad, and then select a "Campaign Objective" that will help you achieve that goal.

Create high-quality creative
When it comes to Facebook ads, the quality of your ad creative has a huge impact on your results.

This is because, as explained in the previous chapter, the quality of the creative determines whether or not an ad is displayed, as well as the cost per impression and cost per click, and also affects the ad's click-through rate.

So, don't neglect the creative aspects of your Facebook ads and make sure they are high quality.

The article below summarizes how to create high-quality Facebook ad creatives, so if you're struggling with how to create creatives or if you're not getting the results you'd like with Facebook ads, be sure to check it out.

Reference
Facebook ad creative | Tips on character count and text/banner creation

Keep adding new creatives regularly
Make sure to keep updating your Facebook ad creatives regularly.

Because it allows you to continually improve the performance of your Facebook ads.

As explained in the previous section, ad creative affects the click-through rate, cost per impression, and cost per click of your Facebook ads, so by regularly adding creative and comparing and testing them, you can continue to improve your results.

In addition, by running multiple creatives at the same time, Facebook's AI will be able to use highly accurate machine learning to deliver creatives that are more likely to produce results to each user, so it is important to continue adding new creatives on a regular basis.

Serving ads across all locations
As explained in Chapter 2 of this article, there are many different places to place Facebook ads.

Many companies and advertising agencies only distribute their ads to places where they are likely to see results, but in reality, they are more likely to see results if they distribute their ads to all locations.

Of the many locations available for placing Facebook ads, there are certainly some locations that tend to be more effective than others depending on the product or service you are dealing with, but you won't know whether a particular location will be effective until you actually run the ad.

In order to avoid missing out on opportunities to see results because ads were not delivered to locations where they would have been more effective, it is important to first deliver ads to all locations, and if you find locations where you are not seeing any results or locations where the results are not worth it in terms of the amount of work, you should stop delivering ads to those locations in order to see better results.