Have you ever seen sponsored ads on Facebook or Instagram about various products, different types of digital marketing courses, or webinars?
Those sponsored ads are shown using the Facebook Advertising platform also known as Facebook ad network.
Let’s learn more about Facebook advertising and how Facebook advertising works.
What is Facebook Advertising?
Facebook Advertising is the concept of advertising on Facebook, Instagram, and other properties owned by Facebook. Facebook advertising is a money-making machine for Facebook.
Facebook advertising is used by marketers and brands to show ads to their target audience and Facebook makes money by allowing brands and advertisers to show ads to Facebook users.
Actually, Facebook advertising is the way to earn money for Facebook by showing targeted ads to Facebook users.
According to Statista, Facebook clocked revenue of 17.44 billion US dollars in the first quarter of 2020 and over 18.32 billion US dollars in the second quarter.
I am a big fan of Google Ads and SEO, but I still run Facebook ads for my business and my clients because Facebook advertising is the unique way to reach a large audience at a better price compared to many other platforms.
Facebook advertising is very popular in various parts of the world including India.
Now you must be wondering, how does Facebook Advertising work?
How does Facebook Advertising work?
Before you learn about how does Facebook advertising works, you must understand the main difference between posting content on the Facebook or Instagram page or profile and running ads on Facebook.
You must remember that Facebook Advertising is paid while posting on Facebook pages, Groups or Instagram is organic and not paid.
If you post content on your profile or page, it will be shown only to limited people who like of follow your pages, while using Facebook advertising you will be able to reach more people and you can also choose right kind of people based on their age, gender, education, location, and interest.
In nutshell, Facebook allows you to show your ads to more people and the audience you choose and for that, they are charging you money. Simple…
How do Facebook ads work?
Facebook has a huge database of Facebook users, their age, gender, interest and what kind of pages they have liked, and what kind of content they engage with.
This database is known as an audience in Facebook Advertising System.
We as advertisers can use Facebook ads manager or business manager to create Facebook ads and decide who should be able to see our ads.
Facebook ads are targeted to users based on their location, demographic, and profile information. …
Once budget, bidding, and other information entered, Facebook will decide who and when users will see our ads based on our bid, budget, and other parameters.
Once our ads are approved, our ads are shown to Facebook or Instagram users, and money is deducted from our Facebook ads account.
This is the most simple way you can understand how Facebook ads work.
But this is not as simple as it looks. Facebook uses powerful algorithms and machine learning to decide who will see which ads and how much money will be charged to which advertiser.
Once ads are shown, Facebook also generated reports, and reports are provided to advertisers for analysis and optimization.