How do I get the best possible ROI on Facebook Ads?
The Facebook algorithm is designed to favor relevant creative. It is, therefore, good for your business and its bottom line.
- At any moment in 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 mechanism. This is how Facebook decide whether your ad or perhaps one from your competitors will be served. The auction seeks to maximize the experience of your users by providing them with the most relevant content.
- The auction looks at two things:
- How much you bid to reach that audience
- How relevant that ad is to them (relevancy score).
- 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 high click-throughs 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 is good for your business, for you will be more competitive in the auction, and may even be able to beat people who are bidding more than you.