Facebook Blueprint - Ad Auction And Delivery Overview

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What is the Ad Auction

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The Facebook Ad Auction is designed to maximize advertiser value while optimizing the consumer experience for audiences on Facebook, Instagram, Messenger, and Audience Network.

In general Facebook tries to show your ads eveny throughout the day so that the people most valuable to you in your target audience are more likely to see them.

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Auction - Define/How it Works

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An auction occurs when there's an opportunity to show someone an ad, leading advertisers to complete for this opportunity. To find the most relevant ad to show someone, we rank each ad targeting every individual. The winning ad maximizes value for both the advertiser and this person.

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Pacing System - Define/How it Works

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Our pacing system aims to maximize value over the duration of your ad set and over many, many ad opportunities

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Advertiser Controls - Define/How it Works

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These are the advertisers inputs that guide our auction and pacing systems.

These inputs include values and parameters you specify for your audience, budget, bid, placement, schedule, and optimization goals.

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Basics to an ad auction - 4 steps

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1. Competition - Thousands of advertisers may want to display their ad to the same type of person who is on Facebook.

2. Determining Bids - Facebook holds auctions that take into account each of these advertisers bid, but also consider how intersting and relevant the user will find the ad being shown. Also how likely they will be to take an action ont he ad.

3. Choosing the winner - Based on each of these considerations facebook will choose a winner

4. What the user sees - All this is done behind the scene and the user sees the chosen ad.

The ad process works the same way on Instagram, Messenger, and Audience Network

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Total Value (Ad Auction & Delivery Overview)

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An ad with the highest Total Value will win the auction.

Total Value - is a numeric value calculated using several factors, including the bid you submitted when you set up your ad, our predictions about how the people in your audience will react to your ad, and how relevant we think they'll find your ad.

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User Value (Ad Auction & Delivery Overview)

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User Value takes into account relevance and ad quality. The more relevant your ad is to your audience, the more likely it will be more competitive in ad auctions as well as perform better.

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Formula used to determine which ad wins the auction

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Advertiser bid x Estimated action Rates + user value = total value

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Advertiser Bid

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When you submit an ad , you're telling facebook how much you value a certain outcome from your target audience. While your bid may be lower than what you actually pay, we recommend you determine your bid based on the cost per action you're willing to pay or the ROI you want to achieve.

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Estimated Action Rates (Ad Auction & Delivery Overview)

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represent how likely we think a given person is going to take that action. This based on the previous actions by the person you're trying to reach has taken.

Regardless of which action you choose, we convert all advertiser values to an effective cost per impression (eCPM)

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User Value (Ad Auction & Delivery Overview)

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is about creating the best experiences for people across our communities. We consider whether someone would want to see your ad when we determine which ad will win an auction. User value captures things like ad quality, expected positive and expected negative engagement from the people in your target audience, and post-click experience.

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Ad Relevance Score

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after your ad is served more than 500 times, it receives a daily relevance score between 1-10. A score of 10 means we estimate your ad as being highly relevant and a score of 1 means we estimate it's not very relevant.

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Budget Pacing (Ad Auction & Delivery Overview)

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By default, facebook shows ads to people in your target audience evenly throughout the day across Facebook, Instagram, and other communities. We do this so we can serve your ad to valuable people throughout your campaign rather than exhaust your budget within a few hours.

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Accelerated Delivery (Ad Auction & Delivery Overview)

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This option is selected when advertisers want to spend their budgets as quickly as possible.

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Standard Delivery (Ad Auction & Delivery Overview)

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Standard delivery is designed to spend your budget evenly over the duration of the campaign using a method called discount pacing.

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Discount Pacing (Ad Auction & Delivery Overview)

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Under this method, we essentially lower your bid to a level that will just spend your budget over the campaign duration so that you can capture more opportunities at more efficient costs.

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What four ways does facebook measure on how people interact with paid content from ads (Ad Auction & Delivery Overview)

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1. Ad Quality Panel

2. Post-Click Experience

3. Predicted actual engagement

4. Repetition

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Ad Quality Panel (Ad Auction & Delivery Overview)

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We tap facebook users for feedback on ad quality, whihc is the most important factor in determining user value. The ad quality signals are derived from:

- Evaluation by a representative sample of Facebook users who judge ads in their News Feed primarily on whether or not they want to see the ad.

- Responses from Facebook users when surveyed about thier preference for ad A vs. ad B.

- Machine learning models that have been trained on the survey results in addition to the factors below.

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Post-Click Experience (Ad Auction & Delivery Overview)

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We look at the drop-off that may occur after someone clicks an ad but abandons the experience before the landing page loads. We want to better match your ads with people who are actually going to be able to consume the content. This means that if your ad traffic abandons he experience before your landing page loads, it can lower your user value score.

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Predicted and actual engagement (Ad Auction & Delivery Overview)

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Before we run your ad, we predict how people may react to your ad through actions like clicks, shares, likes, and video views

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Repetition (Ad Auction & Delivery Overview)

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Seeing the same ad over and over can be a drag on user experience, therefore user value is refreshed to prevent the most repetitive ad experiences

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Posts and ads that link to web pages with poor user experience will... (Ad Auction & Delivery Overview)

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Likely carry low USER VALUE

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What makes a poor user experience on a web page? list 2 (Ad Auction & Delivery Overview)

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1. Slow load times

2. Poor content experiences

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What % of website visitors abandon a site after three seconds of delay? (Ad Auction & Delivery Overview)

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40%

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How is website performance and people's connection speeds taken into account in regards to the ad auction? (Ad Auction & Delivery Overview)

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The delivery system factors in your website performance together with the targeted person's network connection speed. We will show ads to people when they are interested in the content and have a network connection that can quickly load th epost-click content.

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What content onlandings pages have people told facebook they don't want to see? 4 answers (Ad Auction & Delivery Overview)

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1. A disproportional volume of ads relative to content.

2. Sexually suggestive or shocking content.

3. Pages that contain malicious or deceptive ads which include prohibited content as defined in our policies

4. Pop-up ads or interstitial ads that block people from engaging with the web page.

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Delivery Insights (Ad Delivery)

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A tool that helps to understand your ad delivery or performance

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Estimated Daily Results (Ad Delivery)

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A tool that predicts potential results in the auction.

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Activity History (Ad Delivery)

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Shows what actions were taken on a specific ad set, such as "ad status updated" and "ad delivery"

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Auction Overlap (Ad Delivery)

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Specifies what other ad sets within your ad account share an overlap - for instance, an audience overlap across ad sets. A higher rate of overlap may be the cause of your performance issues.

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Audience Saturation (Ad Delivery)

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Provides data such as the percentage of your daily impressions that comes from the people seeing this ad set for the first time.

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Delivery Insights (Ad Delivery)

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Use delivery insights when you want a comprehensive look into your ad set's performance. The dashboard metrics provide the data and guidance to help you interpret fluctuations in performance and what to do about it.

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Budget Curve - (Ad Delivery)

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Use this to adjust your budget and see in real time the predicted daily outcomes when editing ad sets.

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Slider Bar (Ad Delivery)

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Use this to adjust audience, placements, bid amoutns, and budget to find out in real-time what are their predicted daily outcomes when creating or editing ad sets.

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What are the 2 optimization delivery options?

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1. Standard

2. Extended

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Standard delivery - define (Ad Auction & Delivery Overview)

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uses a combination of link clicks and conversions for a short learning phase, then optimize for conversions. Less budget will be used for link clicks, and the full budget may not be spent.

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Extended delivery option - define (Ad Auction & Delivery Overview)

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Optimize fo rlink clicks until the ad set gets sufficient data about who is likely to convert, then use conversions. More budget can be used for link clicks, and the full budget may be spent.

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Conversion Window - What will your input on one tell you? 2 answers (Ad Auction & Delivery Overview)

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1. Which action(s) lead to conversions: Do most of the people who convert click or view your ad? or both?

2. How long does it typically take for people to convert after seeing or clicking yoru ad? WIthin a day or within seven days?