Facebook Ad algorithm explained

Facebook Ad algorithm explained

Originally, when Facebook launched its ad algorithm, it was based on an auction which meant it gave priority to the highest bid. However, in 2018, Facebook announced it shifted toward the user experience model while integrating the auction. The auction is based on different aspects of how ads are served to users on the platform.

Let’s go through each one in detail:

Ad Rank

  1. Ad Rank:
    • Definition: Ad rank determines the position that your ad occupies in relation to other ads in the auction process that Facebook uses to serve ads to its users. It’s computed using a variety of factors including your bid amount, the estimated action rates of the ad, and the ad’s relevancy and quality.
    • Importance: Understanding and optimizing your ad rank can help you to achieve better positions in the ad auction, potentially leading to more visibility and higher engagement rates for your ads.

Advertiser Bid

  1. Advertiser Bid:
    • Definition: This is the amount of money an advertiser is willing to pay to have their ad displayed to users. In Facebook Ads, advertisers can set manual bids or allow Facebook to automatically set bids based on the ad’s budget and objectives.
    • Importance: Your bid amount can influence your ad’s competitiveness in the auction process, potentially impacting its visibility and reach. A higher bid can increase the chances of your ad being displayed, but it can also increase your costs.

Estimated Action Rates

  1. Estimated Action Rates:
    • Definition: Estimated action rates are Facebook’s prediction of how likely users are to take a desired action (like clicking on a link, making a purchase, etc.) upon seeing your ad. These rates are determined based on historical data and other ad performance metrics.
    • Importance: Higher estimated action rates can potentially improve your ad’s performance in the auction process. It’s beneficial to develop ads that encourage users to take desired actions, as this can increase your ad’s estimated action rates and improve its competitiveness in the auction.

Ad Relevancy and Quality

  1. Ad Relevancy and Quality:
    • Definition: This refers to how relevant and high-quality an ad is perceived to be by the users who see it. Facebook assesses relevancy and quality based on a variety of factors including user feedback, click-through rates, and other engagement metrics.
    • Importance: Ads that are deemed to be more relevant and of higher quality can receive more favorable positions in the auction process, potentially leading to better results. It’s beneficial to develop high-quality ads that are relevant to your target audience in order to optimize your ad performance on Facebook.


Understanding and optimising these aspects of your Facebook ads can potentially help you to achieve better results with your advertising campaigns on the platform. It is always recommended to keep an eye on the changing algorithms and updates that Facebook frequently rolls out to get the most out of your advertising efforts.


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