For every single ad impression, Facebook runs an ad auction wherein its system selects the best ads to run based on the ads’ maximum bids and ad performance.
So every time you as an advertiser, set up an ad and define the audience you want to taregt, there is no guarantee that anyone in that audience will actually see your ad. This is because your ad must first win an auction to be seen.
So how can you ensure that you win the auction?
You might think that putting more money on an ad will solve the issue. That’s only partly true: the ad with the highest total value will win the auction, but the value is determined through different variables.
The highest total value is scored by three major factors:
- Bid: This is the maximum amount that you will potentially pay to win a bid
- Estimated Action Rates: This is the estimated action that your target audience will most likely take. An action would be clicking, converting, engaging etc.
- Ad Quality: This is a measurement based on multiple sources, including relevance, feedback from people viewing or hiding the ad, and assessments of clickbait.
Overall, estimated action rate, ad quality/relevance and bid are key indicators for the success of your ad campaign.
Are you struggling to get conversions or leads from your Facebook/ Instagram ads? Contact our team today for a 30 min discovery call.