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What is a Facebook auction and how does it work

What is a Facebook auction and how does it work

Content

  1. What is a Facebook auction
  2. What factors affect the auction
  3. Tips to boost your auction
  4. Conclusion

Affiliates who have immersed themselves in the world of Facebook ads know well that success requires a deep understanding of how the platform's auction works. It is the auction that determines who your ads will be shown to and when, as well as their position in the News Feed. By mastering the principles of its operation, you will be able to stay ahead of the competition and create consistently working advertising campaigns.

What is Facebook Auction

Facebook Auction is a tool for optimal ad placement that determines which ads to show, when and to whom, in order to maximize results for all participants: the platform, advertisers and users. The main goal of the auction is to create a balance of interests by offering users relevant and valuable ads that are not annoying.

Facebook categorizes advertisers into two groups: "Viners" and "Losers". "Viners" compete successfully in the auction, gaining the opportunity to show their ads at optimal moments in front of the most appropriate audience. This is achieved through proper strategy, creating relevant content and effective ad campaign management.

What factors affect the auction?

To become a "Wiener" and take the lead in the Facebook auction, you need to consider a few key factors.

2.1 Cost per click

This factor reflects how much you are willing to pay for your desired results when setting your budget for an adset or campaign as a whole. If your bid is high, Facebook may be more loyal to you than others. However, it's important to realize that the bid you set doesn't automatically guarantee you'll receive events (clicks, leads, app installs, etc.) at that price. Facebook may provide them at a lower cost, but if you are willing to pay more, your ad will get priority.

 

2.2 Ad Quality

Facebook uses various metrics to evaluate the quality of ads, such as "quality score" and "engagement or interaction score". Accordingly, we need to increase these metrics so that the auction system will give you the best spots.

 

The quality of an ad depends on several factors:

  • Creatives and text: It is important to package the offer competently and attractively for the client. The more users click on your ad, the higher its position in the auction. Trust professionals and order quality creatives for arbitrage.
  • Landing: The landing page should have detailed information about the product, its features and functionality. Add a video review or unboxing to increase conversion rates. It is also recommended to use domains with age and in popular zones, such as ".com".
  • Comments: Don't forget to tweak the comments under your ads to get interactions with the creative. Spell out natural and relevant comments, avoiding platitudes.

2.3 Ad display times

On Facebook, there are optimal time intervals for display ads, when ads are more likely to hit the most visible positions. These intervals are usually during the morning hours from 7 to 11 and the evening hours from 18 to 21. The timing depends on the nature of the product or service you are advertising. For example, if your product solves health problems, it is most effective to run ads in the morning, when potential customers may be more attuned to finding solutions after a problem arises.

 

2.4 Advertising history

The history of your previous advertising campaigns is a key factor affecting your position in the Facebook auction. If your ads have been successful in the past and met high standards, Facebook will view you as a trustworthy advertiser and give you more favorable terms compared to those with no experience or history on the platform. This means that your ad can get better positions and more attention from your target audience.

 

It's important to continue to develop and improve your advertising campaigns to maintain your reputation as a trusted partner for Facebook. Regular optimization, analyzing results, and implementing innovative approaches will help you strengthen your presence and performance on the platform, ensuring sustained advertising success.

2.5 Ad budget

If you are increasing your Facebook ad spend, the auction decides to bid you higher as well. Larger budgets can go a long way in drawing more attention to your product by prioritizing it in the auction.

 

 

Tips on how to boost your auction

To top Facebook's auction and maximize the effectiveness of your ad campaigns, follow these tips:

  1. Constantly test and optimize creatives and texts. Experiment with different options for packaging the offer, study audience reactions and choose the most effective solutions.
  2. Improve the quality of your lendings. Regularly update content on landing pages, add new elements (videos, images, descriptions) that can increase conversion rates.
  3. Keep an eye on comments. Respond to comments under ads in a timely manner and encourage interaction with the creative. Use natural and relevant comments, avoiding trite phrases.
  4. Analyze ad display times. Determine the most appropriate hours for display ads based on the specifics of your product and the behavior of your target audience.
  5. Work with reliable advertising accounts. Consider using agency accounts that have a higher level of trust from Facebook and can provide a better position in the auction.
  6. Optimize your budget. Test different budgets and find the best balance between cost and campaign effectiveness.
  7. Collect retargeting audiences. Casting a retargeting audience that is already familiar with your product can significantly reduce cost-per-click and increase conversion rates.

Conclusion

Facebook's auction algorithm aims to achieve optimal results for advertisers and users, given the importance of avoiding audience overlap. It is important to set competitive pay-per-click rates and create attractive creatives that match the interests of the target audience. Regular optimization and analysis of campaign results help to ensure sustainable success in traffic arbitrage on Facebook.

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