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Facebook Offers Tips On How To Navigate Its Auction

  • Facebook, Thursday, March 24, 2016 9:03 AM
In a detailed blog post, Facebook explains how its auctions work, offering tips and a video. The post emphasizes all that goes into determining who sees which ads on Facebook. For example, "across Facebook, Instagram and the publishers in the Audience Network, advertisers are running ads with different objectives, like brand awareness and sales, and are optimizing for different outcomes, like video views and clicks. So, to ensure all ads are evaluated in a consistent way, we assign a total value to every ad that competes in the auction. The total value is calculated from three factors: 1. The advertiser’s bid value for the outcome they care about. 2. The probability that showing an ad to the person will lead to the advertiser’s desired outcome. 3.The ad’s quality and its relevance to the person." This is a helpful primer for all parties involved in Facebook auctions.

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