How Facebook Advertising Auctions Work

An auction will occur each time when the ad is displayed. The advertisements posted on Facebook compete with each other and the ones who judged to be the most effective are displayed to the user. 

1.Bid

The cost set by the advertiser.

2. Estimated action rate

Probability of taking a target action (buy, like, etc.) when displayed to the user.

3. Advertising quality

Relevance between ads and links and user likes! A quality index that determines whether users who see an advertisement have negative emotions based on various sources such as.

Indicator nameAbstract
Quality rankingEvaluation of ad quality compared to competing ads for the same audience
Engagement rate rankingExpected engagement rate compared to competing ads for the same audience
Conversion rate rankingExpected conversion rate compared to ads competing for the same audience with the same optimization goals

The quality of advertisements can be broken down into 3 elements by the advertisement relevance diagnosis and used as a reference for improvement points. If the performance of the advertisement is not very good or if the performance is fluctuating, please check those 3 elements and make some adjustments accordingly.