The algorithm that Facebook uses is designed to support relevant content. It is a rule that Facebook implements and adheres to with an iron fist. (And in case you're wondering: Yes, it IS good for your business).
- Remember, that at any given moment or time, there are many ads that could be served to an audience you are trying to reach on Facebook.
- To sort these ads and make sure Facebook deliver the most relevant ad to people, Facebook uses an auction system. This method is how Facebook determines whether your ad or perhaps one from your competitors will / should be served. This auction system looks to maximize the UX by providing them with the most relevant content.
- There are 2 important factors that this system observes:
- How much you're bidding to reach your target audience
- How relevant is your ad to your target audience
- To calculate your ads relevancy Facebook looks at thousands of different signals. However, in its simplest form, it looks at all of the positive signals arising from your ad, and the negative. These are then combined with what you bid, to calculate your ads competitiveness in the auction.
- For instance, if you uploaded an ad that got a high CTR (Click through rate) and engagements, this is a signal of relevance, and thus you would get better and cheaper delivery to your audience. However, if you were to receive negative interactions on your ad, such as x-outs, it would work in the opposite direction, with you having to pay more to reach your audience of choice.
- Therefore, good (more relevant) creative content is great for your business. Follow this rule of thumb and you'll be far more competitive in your auctions and as a result, beat your competitors who are bidding more than you.