Facebook released an update about the changes it is making to the way it displays ads in users’ news feeds, according to Hong Ge, Engineering Manager of News Feed Ads at Facebook.
Ge explains that the first step is looking at the parameters marketers set for who they would like to target with their ads. Once the demographics are set (which may include age, location, and relationship status) for the ad campaign, Facebook then begins determining which users are best for ad impressions.
By better optimizing ads, marketers will experience better overall impression and click through rate, likely leading to a higher ROI.
Benefits to Users
Along with better ROI for marketers, users can also benefit from optimization. Whenever a user interacts with an ad, through either clicking on it, liking it, sharing it, or commenting on it, Facebook takes these actions into consideration when determining what later ads to display.
Furthermore, Facebook takes negative interaction with ads into consideration as well. If a user removes an ad from their news feed, flags it as spam, or says it is not applicable to them, Facebook may change the way it displays an ad, both for that specific user and possibly overall.
Again, Ge states that there are benefits for both marketers and users when it comes to negative interactions with ads:
For marketers, this means we are showing ads to the people who might want to see them the most. For example, if someone always hides ads for electronics, we will reduce the number of those types of ads that we show to them.
No matter who it is serving, Facebook is dedicated to providing the most relevant ads to the greatest number of people, in a way that benefits both parties.