If you’ve logged onto Facebook recently, you have probably noticed the influx of advertisements that seem to clutter your news feed. It seems like there are now more Facebook ads than ever before, and each ad appears to cater to your specific interests. For example, if you live in or near a large metropolitan area, you may see ads for a restaurant or activity in that area. If you frequently browse certain online stores, you will most likely receive ads for that particular store. Facebook is smart with this- ads are chosen based on relevance to each individual user and strategically placed where Facebook sees fit.
One of the reasons Facebook advertising is so important is that it allows ads to reach an astronomical amount of people. It was reported last year that 1.94 billion people use Facebook every month, and 1.28 billion log onto the platform daily. Due to the number of people worldwide who use Facebook on a daily basis, advertisers have been scrambling to place their ads on the site. A common practice of Facebook advertising involves advertisers bidding on ad space on a particular part of the site. Advertisers can bid for ad placement, and Facebook selects the ads they feel are a good fit based on different demographics like age, location, and interests. There are several factors that Facebook considers before choosing a winner in an ad auction, including bid, estimated action rates, and ad quality and relevance.
Due to the competitive nature of Facebook advertising, many companies have begun using social media optimization services to initiate audience growth and increase customer engagement. Advertisers are recognising the importance of Facebook advertising, and many are realizing that they need to kick it into high gear to stand out among other advertisers. The competitiveness of the Facebook advertising world is also beneficial because it encourages advertisers to compete for precious ad space, thus weeding out low quality ads and leaving room for ads that are going to be impactful.
Facebook advertising is a huge part of our online experience and something that has been proven to benefit not only the advertiser, but the consumer as well. Many advertisers have acquired new customers from Facebook ads alone, and the market is now more competitive than ever. Placing an ad on Facebook can significantly elevate a company and give them a huge platform for exposure that they otherwise may not have been able to achieve.