21/07/2024
Ad Auctions:
- Happen every time an ad is shown to someone
- Billions of auctions occur daily across Facebook apps
- Advertisers compete to show their ads to specific target audiences
Who competes:
- Advertisers who target audiences that match the person's characteristics
How the winner is determined:
- The ad with the highest total value wins
- Total value = Bid (what the advertiser is willing to pay) + Estimated action rates ( likelihood of engagement or conversion) + Ad quality (relevance and user feedback)
Key points:
- Advertisers can manage their bids in various ways
- Ad relevance is crucial, and high-quality ads can win against higher bids
- Use ad relevance diagnostics to improve ad performance