Facebook Ads Auction - How Does It Work (5)
You’re reading the blog of cassshy - fb/adwords mediabuyer. I know how to deal with bans, running/scaling fb/adwords traffic. Ping me in telegram: @cassshy if needed some help.
Guys, today I want to talk about very interesting and important topic - facebook auction.
Note: there will be a lot of ‘auction’ words.
Let’s go!
Auction price generating in Facebook is very similar to Adwords; but with some minor difference, fb is a lil bit smarter in this case.
The auction will be won not by the highest bid (though it also plays a huge role), but ads, which brings the value, liked by targeted audience - this is the value.
Each time the ads were shown to a user - the auction takes place. Just for you interest: fb estimates all the interest, browser surfing from the first seconds after launching the fb and the feeds generates.
As I told before, the ads with the biggest ‘total value’ wins the auction. This index is formed with the following factors:
- advertisers bid;
- Approximate frequency of actions;
- Quality and relevance of advertising.
Let's figure it out:
1) Bid. If you work all the time at an automatic bid, do not bother about it (here, I think, everything is clear, but I'll write the main the reason why).
2) Approximate frequency of actions is based on previous actions of a person in the network and possible previous results of your advertising (if the ads campaign is new, then only the analysis of the target audience is included in the act)
3) The relevance factor is a relevance score. Remember, that the RS reflects only how much your advertising is relevant in comparison with other ads in targeting the same audience.
The advertising with the highest RS value wins - this advertising will be shown at the lowest price.
Thus, advertising with high quality and relevance indicators can win from advertising with a higher rate, but with a low RS.
Conclusion:
- Create texts and creatives for your targeted audience;
- Proceed split tests for different audiences or play with some bids. If you found the winning creative use it with manual bid and compare the results.
Facebook uses the system that sets the pace of advertising.
In other words, Facebook assigns the bid which will be paid by an advertiser for showing ads.
To set the advertising pace for ads group we decrease the bid. Here’s a simple example:
Let’s say, our ads campaign is going to be over, we have only $10 of the whole budget, our bid equals $5. Suddenly a lot of people from our targeting enter the fb feeds, it creates a possibility for showing our ads and getting the results. The result price range varies from $1 to $5. If we were using maximum bid ($5) we would get only two results. However, if we decrease the bid to $1 - we could get 10 or even more results.
I think, there’s no need to explain more.
Some more useful info…
Increasing the budget. It can help you to get more results. However, you should note that result price can also be increased by Fb, cause for spending this budget Fb can charge you for higher prices results.
Decreasing the budget. Most likely, the ads group will keep spending the whole budget, but the result quantity can be decreased.
Point 2 is very important to read when it comes to duplicating and/or launching new ads within the same campaign or ad set.
Since history of user behaviour is stored, it’s very likely that launching a new ad within an ad set will behave very differently compared to launching a new ad in a new campaign!
Sent from my iPhone using STM Forums mobile app
yes, indeed. See, that's the difference between experienced mb and non-experienced ones. I think we all need to share experience about such obvious features of Fb. They're all in front of our nose, but for some reason only experienced mb use 'em
Hi Buddy 
Read all your 6 thread, must start with a thank you !
As for "Let’s say, our ads campaign is going to be over, we have only $10 of the whole budget, our bid equals $5. Suddenly a lot of people from our targeting enter the fb feeds, it creates a possibility for showing our ads and getting the results. The result price range varies from $1 to $5. If we were using maximum bid ($5) we would get only two results. However, if we decrease the bid to $1 - we could get 10 or even more results.
I think, there’s no need to explain more. "
To be honest, I would love if you could explain more cause im not sure how to use this info...
Cheers
Really nice thread cassshy! I agree that relevance score is great metric to get your ad in front of people's eyes, it's not about the bid, always.
LeadCloak
Home > Paid Traffic Sources > Facebook & Instagram