Understanding the Facebook Algorithm to Maximise Ad Reach and Visibility

A solution for both advertisers and Facebook users

While advertisers want maximum reach and value for their ads, Facebook users wish to have personalised online experiences, unhindered by advertising.

These contrasting needs pose a problem for Facebook, but they’ve developed a solution that balances the needs of both advertisers and users:

The Facebook algorithm sets out to deliver the most relevant content and ads to users so that they aren’t overwhelmed or annoyed. Meanwhile, the algorithm ensures ads are shown to the most qualified users, increasing the reach and value of advertisers’ campaigns.

So, what are the cogs behind Facebook’s algorithm doing? And how can advertisers get the most from it?

What is the Facebook algorithm, and how does it work?

Facebook calls its algorithm “personalised ranking,” which is a pretty good description of what it does. The social media giant’s algorithm works to rank the different content shown in users’ News Feeds in a way that will be best for each individual user.

Rather than displaying content chronologically, Facebook will evaluate every single ad, post, Story, and Reel and arrange them optimally according to several factors (discussed below). This process is repeated every time a user refreshes their News Feed.

The content appearing at the top of feeds is what Facebook has deemed to be the most interesting, meaningful, or important to a given user.

This whole process is actioned by artificial intelligence and machine learning processes, which are continually improved and updated.

Ranking factors used by Facebook’s algorithm

So, how does Facebook’s algorithm decide the order in which posts should be displayed? Well, there are three main ranking factors as of 2023:

1. Who posted the content (Facebook users are more likely to be shown content from accounts and pages they’ve already interacted or connected with in the past.)

2. The type of content (Facebook users will see more of the kind of content (e.g., videos) they most engage with.)

3. The interactions with the content (If a particular post has had a lot of engagement, Facebook will show it even more to other users.)

Do users have any control over their own News Feeds?

Alongside these ranking factors, Facebook has given users a couple of ways they can customise their own feeds.

For instance, users can select up to 30 Pages and people they deem “Favourites”, which will appear higher in their Feed. Additionally, users can click on any post to hide it, snooze it, and add or remove it from Favourites.

Apart from these actions, users’ News Feeds are wholly determined by Facebook’s algorithm.

The Facebook algorithm: News Feed and Reels

News Feed

Facebook prioritises the most meaningful content and puts it at the top of users’ feeds. It uses a four-step algorithm to determine the order in which different pieces of content are shown:

1. Inventory

This first step considers the total set of posts a user could see when they open Facebook. It’s comprised of all the available content from the groups, pages, and people users are connected with, as well as any ads and recommended content based on their activity.

2. Signals

Facebook then analyses the inventory, considering who posted the content, how a user has previously interacted with that person and that content type, and how other people have interacted with it. These factors are called signals.

3. Predictions, and 4. Relevance

These signals are then used to make predictions about how relevant the content will be to a particular user, assigning a relevance score. Content with higher relevance scores will appear closer to the top of users’ feeds.

Reels

Less is known about Facebook’s Reels algorithm because it’s newer. However, there are some undeniable best practices that will improve the discoverability of your reels that indicate the criteria that Facebook is looking for.

  • High video quality (not blurry or low resolution)
  • Videos with good lighting
  • Videos without watermarks from other apps (e.g., TikTok)
  • Videos made with pleasing camerawork
  • Vertical videos that fit the frame (not horizontal or boarded)
  • Videos with music (trending or otherwise)
  • Entertaining and engaging videos (perhaps using trending themes or discussions)

Read this page for Facebook’s full outline of tips for advertisers using Reels.

What kind of content is demoted by the Facebook algorithm?

In order to protect users from harmful, upsetting, or unsafe content, Facebook has developed certain processes that can identify and remove it. If you want to avoid having your content demoted, make sure you’re not guilty of publishing any of the following:

  • Clickbait links
  • Engagement bait
  • Links to sites that request unnecessary user data
  • Unoriginal videos
  • Spam
  • Sensationalist health content
  • Ad farms
  • Content that hasn’t been fact-checked
  • Posts that use threatening, violent, or harassing language
  • Posts that use slurs and words related to harmful stereotypes – Content that violates Facebook’s Community Standards (including graphic violence, hate speech, and more) or comes close to violating them
  • Content that spreads misleading information about COVID-19
  • Content that attempts to sell prohibited products (e.g., endangered species, drugs, firearms, weight loss products, hazardous goods, and more)

Learn more about prohibited content via Facebook’s Content Distribution Guidelines.

In some cases, the consequence of publishing prohibited content won’t just be the removal of that content. Some Pages will lose access to features such as Ads, which would be a significant setback for many businesses.

So, it’s crucial that advertisers are aware of what Facebook’s algorithm doesn’t allow so that they can continue with their ad campaigns unhindered.

What advertisers need to know about the Facebook Ads algorithm

Businesses should always aim to understand Facebook’s algorithm, but what about the Facebook Ads algorithm?

Businesses can’t just create ads and publish them on Facebook. First, there are several steps to go through related to how ads will appear on users’ News Feeds. Understanding these will be crucial to getting your ads seen by the right audience so that you can maximise the value of your efforts and the reach of your ads.

Businesses need to provide key information about their ads

When creating ads with Facebook, advertisers will need to make three choices:

1. Who their target audience will be

Advertisers can select their target audience from a few different sources of data:

a) the information provided by users (e.g., their age, location, or gender)

b) the information gathered by Facebook about the behaviour of users (e.g., those who have clicked on a particular Page or joined a specific Group)

c) lists provided by advertisers themselves (e.g., users on an email marketing list)

2. What their business objective is

Facebook wants to know what you hope to achieve. Your objective could be increasing website traffic, building awareness, or boosting conversion rate.

3. The price of their bid

The advertiser needs to state what they’re willing to pay per user per successful completion of desired action (e.g., clicking a link that takes them to their website).

Don’t overlook this crucial step

It’s essential that businesses take these steps seriously and provide Facebook with detailed information about their intentions for their ads.

Though a business’s objectives and bid are crucial information for Facebook to have, its target audience is perhaps more important. When it comes to an intended audience, be as detailed as possible and take advantage of all the opportunities you have to describe your audience.

This way, you’ll ensure your ads are considered by the Facebook algorithm more often, seen by the most qualified Facebook users, and get more opportunities for conversions.

How does Facebook choose what ads users see?

Facebook doesn’t just use the information above to determine who will see certain ads. The next step is to quantify different ads with scores.

For example, when ‘Tim’ opens his Facebook app, Facebook gathers all the different ads that have included Tim in their target audience. There are ads for mountain bikes, local music events, houseplants, and more.

Before Tim can be shown these ads, Facebook must hold an auction. Auctions look at the “Total Value” of ads, which is a score affected by the following factors:

1) the advertisers’ bids

2) the ads’ Estimated Action Rate

3) the ads’ quality

After these three factors are considered, Tim will see the advert that scores the highest. And it won’t necessarily be the mountain bike business with the largest budget. Tim might be shown the houseplant’s business ad if it turns out to be the most relevant and engaging.

So how does Facebook score different ads to come to this conclusion?

The highest bid doesn’t always win

Facebook doesn’t just show the highest-paying ads to every user. If it did, countless users would be frustrated by seeing irrelevant ads, and advertisers wouldn’t be seeing as good interaction levels compared with if their ads were simply shown to the most qualified users.

This allows smaller businesses to compete and for the most relevant ads to reach the most qualified users.

Calculating ‘Estimated Action Rate’

In order to show ads to the most qualified users, Facebook calculates the Estimated Action Rate (EAR). Machine learning and predictive algorithms calculate how likely it is that a user will complete the advertiser’s desired objective.

The EAR is figured out by looking at a user’s historical behaviour on Facebook and their behaviour outside of the app (if that information is available). It will also consider how other users have interacted with the ads in question, and even the time of day.

Calculating ‘Ad Quality’

Machine learning is used again to quantify the quality of ads and uses two factors to do so.

First, Facebook examines how people have already interacted with the ads in question. Second, it will cross-check ads against Facebook’s quality guidance (discussed below).

After the auction

The outcome of analysing Ad Quality, EAR, and advertisers’ bids is an ordered set of ads. At the top of the list are the ads that have been determined most relevant and most likely to succeed. Businesses can make the most of this algorithm by increasing the quality of their ads and inputting as much information about their target audience as possible. Of course, having a high bidding figure helps – but it isn’t the most important thing.

Top tips for working with the Facebook algorithm

1. Know your target audience

Facebook will analyse how people interact with your ads to determine their quality, but you’ll need to put in the work before they’re published.

Facebook states on this webpage that its Feed aims to display content that is meaningful and informative. But what does that mean exactly?

Well, meaningful content is that which users find relevant, interesting, and important.

And informative content is detailed and accurate.

Since these descriptors are subjective to each user, you’ll need to use your understanding of your target audience to create content that meets these criteria. Use the data you have on previous ads to determine what worked and perhaps create a Buyer Persona if you want to go back to the drawing board.

Whatever audience research you conduct, it’s crucial that you take care in developing a realistic profile so that your ads resonate with the people you’re targeting and increase engagement as much as possible.

Regardless of audience insights, ads should always provide value by offering informative, entertaining, or inspiring content. Grab users’ attention with compelling headlines, captivating visuals, and concise, persuasive copy that clearly communicates the benefits of your product or service.

2. Maintain authenticity and transparency

Facebook values authenticity and transparency. With this in mind, avoid using misleading or sensationalised language in your ads, as well as any deceptive tactics that could erode trust with your audience.

Always be honest about your offerings and provide accurate information so that you can build your business’s credibility and reputation.

3. Follow Facebook’s policies

Similarly to the above, you’ll need to avoid breaking any of Facebook’s policies. So, familiarise yourself with them and don’t be tempted to cheat the system. Adhering to these policies will prevent your ads from being rejected or penalised.

4. Leverage custom audiences and lookalike audiences

Utilising Facebook’s targeting options is a great way to boost ad performance. Use Custom Audiences to reach people who already know about your business, and then leverage Lookalike Audiences with that data to increase your reach further.

5. Start making videos!

Video content is highly engaging and often receives preferential treatment from Facebook’s algorithm. Consider incorporating videos into your ads to capture attention and encourage engagement. You might want to contribute to a current Reel trend or show users a “behind the scenes” peek into your business.

If you’d like help with optimising your usage of Facebook Ads, our team at purpleplanet would love to help. Reach out or click the button below to learn more about our services.