How does the Facebook algorithm decide which ads the user sees?

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Facebook wouldn't be Facebook if the highest bidder simply got the contract for delivery and ad placement. Unlike other paid ad platforms, Facebook's strategy (and thus that of Instagram and others) is focused on entertainment. This means that Facebook's goal is essentially to excite users and show them posts and ads that actually interest and entertain them.

In addition to the auction bid, the content of the ads and their relevance to the target audience also matter. If users like the content they see, they'll interact with it and want to see more. In the long run, this keeps users on the platforms (looking at you, FOMO).

Behind the scenes, the algorithm essentially works every time someone opens their macedonia phone number data feed. Within fractions of a second, decisions are made based on user behavior as to which ads will be shown in which slot. Facebook therefore considers the first ad shown to a user to be the most relevant and likely to generate the most interaction.

The Facebook algorithm evaluates the display of each ad based on these three factors:

Advertiser bid
Relevance of the ad for the user
Probability that the user will perform the conversion event that was optimized for (e.g. purchase or link click )
These three factors are equally important. Therefore, it's not just the bid that matters, but above all, that the ad fits the target audience.

Which bidding strategy should I choose?
Now that we know how Facebook decides who sees which ads and when, and also how we should set our budget, let's move on to the bidding strategy.

Basically, a distinction is made between two different options: the manual strategy and automated bidding.

Please note: The bid is not the amount for the ads! Rather, the bid is the amount you, as an advertiser, would be willing to pay to display your ads. This amount should be set at a level that allows you to run your ads profitably.

With the automatic strategy, Facebook decides for you how high your maximum bid can be and delivers the ads accordingly.

Note: You won't find the phrase "automatic bidding" in Ads Manager. If you want to let Facebook manage the auction, select the "Maximum Value or Lowest Cost" bidding strategy instead. This is usually set as the default, so you don't need to do anything else.