The probability that the user will perform the action for which you are optimizing your advertising clicking on a link, downloading an application, liking your Page , etc.. Facebook is based on historical data on the user in question, but also that of your advertising and, to a lesser extent, the general history of your advertising account. The quality and relevance of your ad Factors like ad comments and reactions, click-through rate, and post-click experience allow Facebook to judge whether the ad is relevant. You understand that with such a system, the local baker could see his advertisement run before Coca-Cola’s if it is more relevant than that of the brand, if the probability of action of the user targeted by this advertiser is higher for the baker’s advertisement, for the same auction.
It’s interesting, isn’t it? The ad with the highest total value wins the auction and earns the right to run in front of another advertiser who targets the same people an audience. Let’s recap. When you put money into Facebook advertising, you are competing with other advertisers who have the same goal as you to show their ads to Facebook users. Some have the ability to Finland WhatsApp Number List bid more than you , but that doesn’t necessarily mean they will win the auction because if your ad is more relevant than theirs, you will increase your total ad value and come first. 3 factors influence this total value Bidding How much are you willing to bid to get your ad to show. The estimated action rate .
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Users providing a positive experience for people who use Facebook and its family of apps In the words of Facebook, the best way to do this is to organize an auction system where both parties are represented. In this way, advertisers reach people receptive to their ads and users see ads that interest them . This system is therefore different from the traditional auction system, since the winning advertisement is not the one with the highest bid, but the one that accumulates the largest total value. In summary, remember that the basic premise of Facebook’s ad auction system is to show the right ad, to the right person, at the right time. How does Facebook calculate the total value of an ad?
I would like to share all of this with you and at the same time give you the benchmarks in terms of cost per click, cost per placement, etc. Ready ? Let’s go. How does the Facebook auction system work? You’ve probably heard of it. Facebook advertising works on an auction system. You know, the traditional auction systems we know, like eBay auctions , are quite simplistic. Whoever has the highest bid wins. On Facebook, it’s different. The user matters too. So how do you include it in the auction? Facebook explains this in its documentation. When its system serves your ads, it strikes a balance between Advertisers creating value for advertisers by helping them reach their target audience and thus improve their results.
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What I want to tell you is that there are many factors that are going to affect how your budget is going to be spent. Knowing these factors will allow you to achieve better results with the same amount of money invested. This is precisely the purpose of this article to show you all the factors that influence the costs of your Facebook ads and how to make them work in your favor to lower your costs. To write this article, I first relied on several studies and written resources to help you better understand how the Facebook auction system works and the other factors that influence the cost of Facebook advertising.