Understanding how Facebook ads auction work is important as it helps you to optimize your Facebook ads cost. Most of the market and advertisers think that the auction process is all about how much money the publisher is putting in but in reality, the Facebook ad auction is not won by high monetary bids.

Facebook always wants to offer the most relevant, important, and positive experience to its users. So the auction winner is not only dependent on the money but on the overall factor mainly the value created by the ad. That is the reason why before publishing any ad it’s recommended to optimize the ad and be more specific when it comes to targeting.

So by analyzing the below points Facebook determines the value created by a Facebook ad:

Bid:

The advertiser bid plays a crucial role as it helps Facebook to determine how interested you are in showcasing your ads to the target audience. Facebook offers two bidding options called the lowest cost and target cost. The lowest cost is more automated and allows Facebook to bid for you with a goal to achieve your desired result (at low cost). On the other hand, the target cost is more manual and directs Facebook to achieve the result at a set goal.

Read More: Facebook Advertising: How Much Facebook Advertising Cost

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