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Learn out about Facebook bidding system

January 13, 2020 in Advertising Knowledge



Learn out about Facebook bidding system

To publish an ad on FB it means to show a content on the newsfeed of the targeted customer; might be any kind of content, like a post, a video, a photo, etc. In addition, Facebook bidding system will place directly your ad depending on the result of the auction.

FB cannot show only sponsored contents in the news feed; it has, in fact, to try to reduce it to the minimum to avoid that the user leaves the platform. So, it is essential for FB, to understand which ads are good to be published to:

● Have the higher economic return for the investment

○ Keep the user on the platform

When we create the ad, at the section “Budget and Schedule” it is possible to set the maximum budget that we are willing to spend; it is possible to manage the bids automatically or manually (expert users).

Return over time

If the ad is not giving positive sign, as few clicks or few interactions, Facebook will make it less visible, increasing its cost. This does not mean that we are going to spend more of our set budget, but that, we will reach less people, and so, costs for results will be higher.

How Facebook optimize the ads

While analyzing constantly every profile activity, FB can determine which are the profiles that are most likely to make an action.

Inside of an audience, we will always have three different types of people, for whom FB will always optimize the publishing of the campaign to make us achieve our goal.

When we define an objective, the system will optimize the ad in order to make us achieve the goal at the minor cost. To do this FB needs time; we need to leave always 24-36 hours’ time to leave FB define the best public which suits better to our ads.

How Facebook bidding system ad placement

The auction, that we are going to join, hence, is valid just for one single visualization, and not for an audience.

Every user has a limited number of ads that can see; so, if we have many advertisers in the auction how FB decide who gets the best slots?

FaceBook bidding system generates a quality score through the auction; moreover, this is responsible to classify the advertisers and the placement for each auction. The ranking position determine the position of the ad in the newsfeed of our user.

Let’s have a look to the macro marketing objectives for our FB campaigns:

Brand awareness; this goals generates interest to your product or service

Reputation and consideration; these goals push the people to think about your company and to look for more information regarding your brand

Conversions; this goal encourage people who are already interested in your company to buy or use your product/service

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