It’s a well-know fact that Facebook ads are sold on the auction bases. It means that you are competing with all other advertisers worldwide to reach a certain audience. What helps you win or what makes you lose? What are the Facebook bidding types? What is the cost of facebook ads? Why you pay this much and not less or more? These and some other questions will be addressed in details in this blog post. Let’s finally clear it all out!
How does the Facebook auction work?
The auction takes place every time when Facebook sees an opportunity to show an ad to a user. Within few seconds Facebook algorithm evaluates all the ads participating in it, chooses the most relevant and shows it. What factors influence the final decision?
The sum that you are ready to pay which is defined when launching the ad campaign. There are automatic bids and manual bids, therefore you can choose the most appropriet Facebook ads bidding strategy.
Automatic bids are defined by the Facebook itself and is considered to be the optimal one. The sum is calculated based on ads budget, ad sets conditions and the size of the audience you are targeting.
Manual bids are defined by you as an advertiser and can be set as “Average” or “Maximum” price that you are willing to pay for certain results. The higher is your bid, the more chances you get to deliver your ad to the user. Choosing the right Facebook bidding types is crucial to your ads overall success.
Relevance score is mostly influenced by the match between your ads content and the interests of your target audience. The more relevant is the ad, the more engagement it gets, the higher score you get. This obviously means that it is in your own interest to work hard on the content and message of whatever you try to push to Facebook users. Relevance score defines the price you’ll pay for showing the ad to the user and also the frequency. The more relevant is the ad – the more often you’ll win the auction over less relevant ads.
An estimated action rate is a measure of how likely a person is take the actions required to get you the result you’ve optimized for. Buying IG Likes with Instant delivery will offer benefits delivered instant at the platform. The results are optimized and favor the business person. Proper research can be made at online search engine to know about the buying of online likes and followers. The taking of the actions is with the skills and excellence.
During an auction all of these factors come together into your ads final value. Auction is won by the ad with the higher value, obviously. To get make Facebook ads biddings algorithm work in your favorite you need to improve all of the three factors. Make your ad as relevant to your audience as possible, put the maximum bid and optimize your ad for the actions that your audience is most likely to take.
How is the bid calculated and charged?
Every time a Facebook user perform an action attributed to your ad, you get charged. For example you optimized for website clicks, so every click leaves you with X amount of money less on your bank account. If you optimized for conversions (purchases, sign ups etc.), then you get charged once the conversion happened.
If you went for Conversion optimization, manual bidding and, let’s say, have set $5/ per conversion, this doesn’t necessarily mean that this is exactly what you’re going to pay. It’s just the maximum amount you’re willing to pay, but Facebook will always make you pay only the lowest amount possible to win the bid and have your ad displayed.
In this example, advertiser A will likely be left out and will receive low to zero impressions. Advertisers B and C will get a good amount of impressions at a price somewhere between $0,31 and $0,5 or slightly higher. Advertiser D will probably get more impressions at a price just slightly above those of B & C. Around $0,35 and $0,6. No way is he going to pay $5 in this exact case.
Well, this was all plain theory. A bit boring, yet essential to grasp the essence of how Facebook sells the ad displays. In my next blog post I’ll provide you with a real-life case when increasing bidding amount led to huge increase in reach as well as in conversion.