How Facebook Ads Auction Works?

Facebook ads is a very famous platform to attract our audience through Facebook campaigns. We can attract more customers as compared to another platform because people engaged on Facebook more. Due to the large Facebook database, we can easily place ads for our targeted audience according to our niche. In this article, we will cover how we use facebook database and how facebook auction takes place. There are many niches on which marketers work and facebook categories each and every data in its database. For Example:- A sportswear shop owner runs an ad on Facebook for the audience who are interested in sports so he is willing to show ads to those only who are interested in sports only. Facebook will show ads only to those who are interested in sports and who likes sports-related activities and things. So, what is the process of Facebook for showing the ads to the Targeted audience only and how it works, we will see in this particular blog?

The Facebook system runs on data points. Actually, Facebook ads is a mechanism driven system and algorithm-driven system. Let's see what are the points, the data points consider:-

How to Facebook get data from User Profile?

1. Data from Profile:- Facebook records the profile data within it. We Create our profile and mention our personal details in it like name, age(Date of Birth), Education, Qualification area, Job Status, Relationship Status and many more. So these data are used by the advertisers. For Example- Advertiser wants to show his ads whose age is between 18-40. So Facebook will show the ads to those who are between 18-40 age group from the date of birth section.

2. Your Activities on Facebook:- Facebook records each and every activity. The pages you like the most the users you follow, where you comment, which posts you share, your check-in and all activities. These are regularly added to the Facebook algorithm. Each and Every activity with due date and time is recorded in the Facebook algorithms. What products nor services you want and what you like, what you dislike. These are feed into Facebook in particular categories.

How Advertiser help to grab the Data?

1. Campaigns which are performing: The campings which are performed by advertisers also grasp information about the Facebook users that data are also records in the Facebook database.

Facebook Elements:-

1. Facebook Pages:- Facebook is also the source of data for the users. It includes any information about the page owner, it's category, Bio, Zone and their posts. It records the page followers who are interested in Page, the particular niche on which the page belongs to.

2. Facebook Group:- It receives the data from the group members who are interested in that particular group. The activities they perform in the group. How they react and act. These are the source from which facebook stongs its database from its various platforms. This data can be helpful for the advertiser through which he can easily get conversations and traffic. It can be 99% valid data for the Advertiser.

About Facebook Ad Auction

We know that we invest our amount non-bidding and on per impression we spend our revenue but the ads not only shows according to bidding. Let's take an example:- A Facebook user  is interested in sports and Digital Marketing both niche. And three advertisers want to run an ad on Facebook. The first advertiser wants to run on sports. the second Advertiser wants to run on Digital Marketing and Third Advertiser also want to run ads on Digital Marketing. but Which ad will trigger in front of the user. The first advertiser is ready to invest $10 per click. The second advertiser is ready to invest $15 and Third Advertiser is ready to invest $20. We will think of the third advertiser because he is investing more than another two advertisers. but It's not true. It does not only depend on the bidding amount, but other factors are also considered for Facbook Ads Auction. The Facebook Ads auction depends on "Time Value" The ad will be trigger if the Total Value is more than the other advertiser.

Facebook Platform is very giant. There are thousands and lakhs of Advertisers who are targeting a single user. But the single user has limited space for the Facebook ads on his feeds. But there every advertiser is bidding in this Facebook ads auction higher and higher. But facebook will not consider only amount factor, it depends on " TOTAL VALUE"

Billions of Facebook ads auction take place. Everyday winner of the is only determined by Total Value. 

The factor of Total Value:-

Estimated Action Rate -  It is the rate of action to be taken by the user as per the Facebook algorithms by considering the Past activities of the users.

Ad Quality - The layout of the ad, buttons, title, description, image all defines the ad quality. It also considers the guidelines which are created for the creation of ad is focused or not. Facebook also want the platform popularity and platform will be popular if it provides good qualitative ads to the users.

Ad Relevancy - The ad must be relevant for the user and the destination link, on which user switch after clicking on the Facebook ad. It also must be relevant to the ad. Estimated Action + Ad Quality = Ad Relevancy

So, we need to consider these three factors which are needed to be considered to place Facebook ads to get the quality amount of traffic.