Once again, Facebook is giving marketers a glimpse into its marketing platform with its new tool so that they can understand how ads perform and what they can do to make their ads better. The name? Delivery Insights.
With 3 million advertisers competing for the attention of more than a billion users in Facebook’s news feeds and publishing platforms, Facebook says it runs billions of auctions every day in order to pair “the right people with the right ads,” according to a blog post published today on its website.
That’s why Facebook introduced Delivery Insights, which helps brands understand how their promotions are performing in Facebook’s ads auction. They use the platform to match ads with the right users based on price, intent and quality. Delivery Insights is special because it lets marketers see which ads are underperforming and adjust them to better reach the desired audience size.
Warning: it isn’t available yet. Once it is, you’ll find it in the “Delivery” column of a campaign or under the “Tools” tabs.
Here’s How It’ll Work
Marketers submit requests for ads and select their target audience, objective and a price bid for each click or conversion. Then, each time Facebook has a chance to show an ad to a person in that audience, an automated auction decides which ad the user will see. To determine which ad wins the auction, Facebook assigns a total bid value to each ad.
- The advertiser’s bid value for the outcome they care about
- The probability that showing an ad to the person will lead to the advertiser’s desired outcome
- The ad’s quality and its relevance to the person
Each time an ad is in consideration to be shown to a user, an auction is happening and each of these factors can affect an ad’s potential to win the auction. In each auction, the ad with the highest total value wins (winning means the ad gets shown to the person in consideration). This means that an ad that’s very relevant to a person could win the auction with a low bid. This also means that another ad with similar relevance could win the same auction if it comes in with a higher bid.
Since there are numerous factors that can affect the likelihood of an ad appearing and the price it appears for, Delivery Insights will be a huge help to marketers to run campaigns more successfully. Watch this video if you want to learn more about how Facebook Auctions work.