How the Facebook ad auction works The Facebook app platform is an auction format. So whoever has the highest bid essentially wins. However, Facebook wants to maximize user engagement, which is how they make money. Below is a simplified version of the formula that Facebook uses.
MAXIMIZING ADVERTISER VALUE
OPTIMIZING CONSUMER EXPERIENCE
Advertiser Bid
Estimated Action Rates
Ad Quality
TOTAL VALUE
Your bid for the event you selected as your optimization
What’s the likelihood that an impression shown to this person
How interesting do we think this
The ad with the highest Total Value wins the auction
individual is going to find this ad? Is this a high-qquality ad?
goal – i.e. your desired result
will lead to your desired result?
and shows to the indiviudal.
BUILDING A FACEBOOK LEAD GENERATION CAMPAIGN
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