What are Facebook Auctions and How Does Facebook Ads Auction Work

Facebook Auctions – Lots of business owners have made a whole lot of money from Facebook ads, but some business advertisers still have no idea how this facebook ad auction system works which may have affected the online marketing strategies.

Facebook advertising is important if you need to expand your market and reach your target audience. If you are looking to go into using facebook ads for your business then you need to understand how facebook ads auction system works. 

Lots of business owners are using Facebook ads but do not understand how the system works which has affected their Facebook ad costs and probably reduced how wide their customer base is.

Knowing about Facebook ad auctioning system would go a long way in informing you on how to create better Facebook ad campaign, reduce your facebook ad cost and reach your target audience. We are right here to help you understand Facebook ad auction system which is important for you as a business advertiser.

What Is Facebook Ad Auction | Facebook Auctions

There are lots of advertisers in need of Facebook ad space but then Facebook has to choose who gets that ad space while putting facebook ad audience into consideration. Facebook intends for users to see only high-quality ad contents and ads that are relevant to them. Poor ad contents can lead to users spending less time on Facebook or complaining about the platform.

So, Facebook has to go through a very important process of sorting through ads and evaluating their total value score before choosing the highest bidder, this is where facebook auctions comes in.

Facebook acts like an auction, the highest bidder is not just the advertiser with the highest bidding amount but other factors like Ad relevance and quality and Estimated action rates determine who gets to be the highest bidder.

Many other advertisers are probably trying to get the same ad space; this is why Facebook auctions are done to give ad space to the highest bidder. Facebook looks at certain options before considering you as the highest bidder in facebook ad auctioning; Facebook looks at how much you are willing to pay, finds out the relevance of your ad to the defined audience and also find out the projected ad success.

So, when you have a good bid, create high value contents that have high relevance to your target audience, you stand a chance of being the highest bidder. You have to understand how facebook ad auction works to enable you understand how you can become the highest bidder and reduce facebook ad cost, because the higher quality of ad you have, and the higher relevance your ad have to your target audience the lower your facebook ad cost gets.

How Does Facebook Ads Auctions Work

Facebook looks into the interest of its users and decides the kind of Facebook ads that will be of interest to that particular user. So, Facebook considers this when choosing the highest bidder for facebook ad auctions. The goal of any advertiser should be creating powerful contents, adding good bidding prices and putting your target audience in mind while creating ads so that Facebook has no choice but to choose you as the highest bidder.

First of all, if you are low bidder, you might not get a chance to be considered by Facebook. Advertisers who have high bidding costs are more likely to be considered first by facebook. So when choosing a bidding price, you have to choose a high price in order to stand a chance to compete with other advertisers.

However, facebook is more interested in promoting powerful ad contents than poor contents which means you don’t become the highest bidder by just having higher bidding prices, but you have to create interesting contents for your target audience. If you are a facebook advertiser you have to pay close attention to these important factors: Bidding amount, Ad Quality and Relevance and Estimated action rate.

Bidding amount is how much you are willing to pay for people to see your ad which is a very important option you must consider. While Ad quality and relevance is another factor that determines your ad cost. If your ads do not receive enough likes or if users block your ads from showing on the timeline this means your ad has a negative impact and Facebook will increase the cost of showing your ad.

Ad Quality and Relevance goes along to determine if people are still interested in your ad and you have to know when to improve your ad quality for your audience to appreciate your ad content. You have to be creative enough and create ads with powerful contents that users will want to see. This will help reduce the cost of your Facebook ad.

Estimated action rate helps to determine the particular set of people in your target audience who are likely to respond to ads. Facebook determines which users your ads would appear on their timeline. These important factors are what majorly consist of Facebook auctions system. Facebook considers these factors before considering the total value score of Facebook ads and then they decide who the highest bidder is.

Once you understand this auction system, it would help you create better facebook contents and lower your Facebook ad cost. If you want to stand the chance of being the highest bidder then you have to understand this auction system and put those factors into considerations while using facebook ad campaigns for your business.