Putting your ad in front of thousands of Facebook users sounds like a nice way to boost your biz. But what if everyone who sees your ad lives on the West Coast and you sell flowers in Boston?
Facebook’s updated News Feed algorithm should help with that.
I give Facebook a hard time, but they have a tough job balancing the needs of the marketers with the needs of the users. They have to accept enough ads to keep the profits rolling in but not so many that users get annoyed and leave.
They also have to deliver an experience that results in a good return on investment for marketers while at the same time appealing to the interests of the user.
Sounds impossible, but they seem confident that they can deliver the right ads, and the right amount of ads to the right people. They do this by combining data from both sides of the equation.
Hong Ge, Engineering Manager, News Feed Ads posted this:
Marketers tell us which people they think will be interested in their ad. For example, a restaurant might tell us to show an ad to people living in the same city aged 18 to 35. Marketers also tell us how much they are willing to pay to show an ad – which suggests how much they want to reach a specific audience.
People also tell us what types of ads they want to see and don’t want to see. When a person interacts with an ad (clicks, likes, comments on, or shares), News Feed learns that these ads are relevant for them. When someone hides an ad, News Feed learns that that person wants to see less of those types of ads.
Going forward, Facebook says they’ll be placing more emphasis on the people side – particularly the ads they report as spam or ads they choose to hide. This will result in fewer but more targeted ads so they want you to know that “some marketers” might see “some variations” in their ad distribution in the next few weeks. Don’t panic. Once the pixels settle, this algorithm should result in a higher percentage of clicks per view. In other words, more return for less investment and that’s a very good thing.