Infographic: Decode the Facebook Auction
By Hilary Givens
At first, the Facebook auction may seem like a highly complex or opaque process. However, it is very worth learning and understanding in detail because Facebook advertising is one of the driving forces behind digital advertising today.
To help give you a better understand of the auction process, we’ve designed a visual guide as a reference as you participate in the Facebook auction process. We’ll tell you:
- How to determine your objectives and place your bids (and what kind of bids are possible).
- Details about oCPM — Facebook’s preferred ad-buying system.
- What eCPM is and how it affects calculating the winner of each ad placement auction, as well as the price all bidders pay.
- How a winning bid is placed in the Facebook Newsfeed, and why that causes Facebook ads to have a viewability of effectively 100%.
- The math behind the second-price auction equation that determines what you pay.
You name it, we’ve got you covered. Feel free to use this reference as a resource to help guide you in the future and share it with other Facebook advertisers!
For even more details about the Facebook advertising auction, see our full presentation.