Advertise Your Business With HoruswebX
Today, advertisers can use their bid to tell facebook just how much they value a specific outcome. The auction then uses their bid to optimize the ad for that specific outcome.
The bid is usually the maximum amount the advertiser ends up paying for that outcome — and sometimes, advertisers actually pay less than the amount they bid!
Facebook ad auction works this way because it’s structured based on the Vickrey-Clarke-Groves (VCG) model. It is an incentive-compatible auction, meaning that if advertisers bid their true value for the action that the ad is being optimized for, this can help maximize their ROI.
- Your stated bid
- How Facebook expect people in your target audience to take action after they see your ad
- How relevant Facebook predict people in your target audience will find your ad
As advertisers, we can optimize for different outcomes, such as clicks, impressions, installs, conversions, or reach. With your bid, you tell us the price you’re willing to pay to meet your business goals and we optimize the ad on your behalf.
Then we gather the pieces of information and through our split testing we try to get the most out of Facebook ads,
The Factors we take into consideration are written below:
- Brand Awareness: How many people remember your brand because they saw your ad (ad recall)?
- Reach: How many people did your ad reach per dollar spent?
- Attention: How long did people look at your ad?
- Message Quality: Is the message effective, persuasive, memorable?
- Other Factors: These include current brand awareness levels, perceived brand attributes, product adoption.