Understanding the concept of Facebook ad auction is an essential tool every marketer needs to understand fully to gain more conversions. Facebook advertisement system of delivery works basically with an auction system. The Facebook Auction system is entirely different from the traditional Auction system that operates with the highest bidder option.
How does the Facebook auction service work?
In the Facebook auction service, the winner doesn’t need to be the one with the highest bid; the winner is based on the advertiser that can drive the most significant value for end users. The auction service on Facebook provides an avenue for many advertisers who are gunning for one particular aim; time and space of Facebook users.
When deciding to Show ads on Facebook, two significant things are put into consideration :
- Helping advertisers get results from people who belong in their target audiences by creating value for them.
- We are providing certain, relevant information and experience about Facebook, Instagram or Audience network.
This implies that bidders that get their ads shown to end user are winners of the Facebook auction, not because of their monetary value, but because of the overall amount that the ads bring to users.
Various Methods For Facebook Ads Bidding
There are methods that Facebook employ to select the ads with the highest potential value. These methods include :
- Advert bid: This determines your level of interest in showing your ads. There are two ways you can handle your bidding on Facebook; using Facebook lowest cost bidding and target cost bidding. Facebook lowest cost bidding is one that lets Facebook bid for you by allowing you get your desired bid with a much lower price, while the Facebook target cost bidding allows you to set a target a for you to reach your desired bid.
- Estimated Action Rate: Facebook uses a kind of algorithm to know how a user is going to react to your ad
- Ad Quality and relevance: here, Facebook tries to see how relevant and engaging your ad is to the person viewing it. Some of the things Facebook tends to look at include the kind of feedback given by the person that views your ad, whether it is positive or negative feedback. This implies that negative feedback may decrease your relevance score.
Note that your relevance score does not determine your Total Value, so getting a higher relevance score is good, but shouldn’t be the priority when it comes to Facebook auction. Another critical factor that may increase your total value is based on the users’ post-click experience.
When a Facebook user clicks on an ad, Facebook tries to determine how quickly the ad can load a website allow the user to engage with the contents of the ad. This factor is one that Facebook tends to look at when it comes to auction on Facebook because on the brighter side; it is a win-win for both the advertiser and the user.