How Facebook’s ad algorithm works

Facebook has become an integral part of our everyday lives, connecting billions of people around the world. In digital marketing, Facebook is at the forefront as one of the biggest platforms enabling businesses to reach their target audience. At the heart of Facebook's advertising success lies its advanced algorithm. It determines how ads are displayed and their effectiveness.

What is the Facebook algorithm

Facebook's algorithm is a set of rules powered by machine learning and artificial intelligence that decide what posts users see. Essentially, it decides what content is most relevant to each user based on a number of factors. Everyone's News Feed on Facebook looks very different because it's customized specifically for them. In the following lines, we'll talk more about how the algorithm affects how ads are displayed and effective on Facebook.

How the Facebook algorithm works

Facebook's algorithm is a complex system that determines which ads to show users based on various factors. Although the exact way the algorithm works remains a closely guarded secret (which, to this day, even its creators don't know exactly how it works), there are key elements that greatly influence the decision-making process. Here's a look at some of them:

• User data and engagement. Facebook collects vast amounts of user data, including demographic information, interests and browsing behaviour. The algorithm uses this data to match ads with users who are most likely to engage with them. It does this based on their interests and previous interactions.
• Relevance Score. Each ad is evaluated based on a Relevance Score, which indicates how relevant it is to the target audience. Ads with a higher Relevance Score are more likely to be shown to consumers, while those with a low one are likely to be restricted.
• Advertiser's Bid. Facebook's ad auction system takes into account the bid amount set by advertisers, or the so-called bid. However, it is important to note that the highest bidder in a Facebook auction does not always win. The algorithm weighs the relevance score and engagement factors we mentioned above. This ensures that users receive ads that are aligned with their interests and would be useful to them.
• Advertising format and quality. Facebook prioritizes ads that provide a positive user experience. Ads with high-quality visuals, engaging content, and relevant landing pages typically perform better for the algorithm. This leads to increased visibility for users and therefore their effectiveness for advertisers.

How are publications and advertisements ranked?

Starting in 2023, Facebook's algorithm determines which content is most relevant to a particular user based on three main ranking signals:

• Who posted it: You're more likely to see content from sources you interact with, including friends and advertisers.
• Content type: if you interact with video most often, you'll see more videos. If you engage with photos, you'll see more photos, etc.
• Post interactions: the algorithm will prioritize posts with a lot of engagement, especially from people you interact with more often.

Each post is ranked based on these key signals to determine where it appears in your feed. The important part about Facebook is that the algorithm is constantly learning. This gives users options that help them with more information about a given user. For example, Favorites options have been introduced - you can select certain friends/pages to add as favorites and thus train the algorithm which content is important to you. This training process never stops, with the ultimate goal of delivering highly personalised content for each individual user.

Tips for running a successful Facebook ad campaign

Understanding how Facebook's algorithm works is critical to running successful Facebook ads. By leveraging user data, optimizing Relevance Score, and creating high-quality content, advertisers can improve the viewability and engagement of their ads.

With these strategies, you can harness the power of Facebook's algorithm to drive meaningful results for your business. Here are a few tips from us for launching a successful Facebook campaign:

• Define clear goals. Whether it's increasing brand awareness, driving traffic to the website or generating leads. Having specific goals will help you set up your campaign to target the right audience.
• Understand your target audience. Facebook prioritises content that is relevant to the user and content that is informative, new and interesting to them. Understanding what will be meaningful and informative to your specific audience means you need to understand their unique interests and behaviors. I.e. tip #1 is to do detailed research on your target audience. Use the information to gain a deeper understanding of your target audience's demographics, interests, and behaviors. This data will help you create highly targeted ads that resonate with your potential customers.
• Create compelling advertising content. Create visually appealing and engaging advertising content to grab consumers' attention. Use high-quality images or videos. Concise and compelling copy and a strong call to action that encourages consumers to make the purchase you want. Be fun and engaging and most of all genuine, don't use bad sales practices. The text and headlines you use in your ads should be sincere. It is good to accurately and clearly represent what you offer and what your potential customers need.
• Test multiple ad options: Facebook provides an A/B testing feature that lets you experiment with different ad options. Test different elements like headlines, visuals, ad formats and targeting to determine what works best for you.
• Monitor and optimize: Regularly monitor your campaign performance using Facebook Ads Manager. Analyze metrics like click-through rates, conversion rates, and engagement rates. Use this data to optimize your ads, refine your targeting, and improve overall campaign performance.
• Take advantage of targeting. Use Facebook's targeting capabilities to reach users who have previously interacted with your brand. By showing personalized ads to these users, you can increase the chances of conversions and improve your return on ad spend.
• Engage with your audience - The algorithm prioritizes posts from pages that the user has had meaningful interactions with in the past. This means increasing the chances of a dialogue with users is key. If someone takes the time to comment on your post, don't waste the opportunity. If you make them feel heard with a response, they're more likely to continue commenting on your posts in the future. This, of course, sends more of those favorable engagement signals to the algorithm.

Personal experiences and funny stories with how the Facebook algorithm works

Here we make a very short lyrical note that we are sure will not only make you laugh, but also answer your questions. A few years ago, a colleague of ours witnessed the following situation:

The colleague goes to visit friends who are a couple and have been living together for a few years. Using the wi-fi network, the colleague sees ads for engagement rings. The lady in the couple sees the ad, grabs her phone and starts browsing. She chooses the most beautiful ring and shows it to her friend saying, "Someday if you propose marriage to me, I want that ring, just so you know!"

But why is the story funny? Because the ad turned out to be retargeting the online store from which the fiancé-to-be had already purchased the ring. As you can guess, the engagement was amused for a few months, until the required amount was raised for the perfect ring.

For final

In conclusion, we would like to give you, perhaps, the most valuable advice - do not try to manipulate the algorithm. You need to make an effort to understand what your audience needs. Then create valuable content that meets its interests. Trying to manipulate the algorithm to get a higher percentage of impressions than your ad deserves is not advisable, or put another way - Work with the algorithm, not against it.

How do you beat Facebook's algorithm?

There's no way to "beat" Facebook's algorithm, and you're very likely to be penalized if you try to use "tricks". However, there are many strategies you can use to send clear signals to the algorithm to achieve higher rankings for your ads. Good luck!

See you soon!