Introduction
Facebook and Instagram (both part of Meta) are two of the most powerful advertising platforms in the world. However, many advertisers struggle to understand how their algorithms work, which can lead to poor ad performance and wasted budgets.
In this article, we’ll break down how Facebook and Instagram algorithms process ads, how they determine which ads users see, and what you can do to optimize your campaigns for the best results.
How the Facebook & Instagram Ad Algorithm Works
Facebook and Instagram use machine learning and AI to decide which ads appear on users’ feeds. The algorithm considers three main factors when determining ad placements:
1. Advertiser Bid
Every time someone opens Facebook or Instagram, an ad auction takes place. Advertisers “bid” to have their ad shown to a user. The higher your bid, the more likely your ad is to appear.
There are three types of bidding strategies:
- Lowest Cost (Automatic Bidding): Facebook optimizes bids to get the most results for your budget.
- Bid Cap: You set a maximum bid amount to control ad spend.
- Cost Cap: Facebook tries to maintain an average cost per result within your limit.
2. Estimated Action Rate (User Engagement Probability)
Facebook doesn’t just show the highest-bidding ad—it also considers how likely a user is to engage with it. This is based on factors like:
✅ Previous interactions with similar ads
✅ The relevance of the ad to the user’s interests
✅ The quality and engagement of the ad content
3. Ad Quality & Relevance Score
Facebook assigns each ad a Relevance Score, which measures how well the ad matches user interests. Ads with higher relevance scores get better placements at lower costs.
Factors affecting ad quality include:
✅ Engagement rate (likes, shares, comments)
✅ Video watch time (if using video ads)
✅ Landing page experience (fast-loading, mobile-friendly, relevant content)
✅ Avoiding negative feedback (users hiding or reporting the ad)
How to Optimize Your Facebook & Instagram Ads for the Algorithm
1. Improve Your Ad Relevance Score
A higher relevance score means lower ad costs and better placements. To improve it:
✅ Target the right audience using detailed interests and behaviors.
✅ Use high-quality visuals and engaging copy.
✅ Test multiple creatives and optimize based on performance.
2. Use Lookalike Audiences
Facebook allows advertisers to create Lookalike Audiences, which are users similar to existing customers. This increases the likelihood of engagement and conversions.
3. Optimize for the Right Conversion Event
Choosing the right campaign objective is key. If you want purchases, select Conversions instead of Traffic, as Facebook will prioritize users more likely to complete a purchase.
4. Avoid Ad Fatigue
If people see the same ad too many times, they stop engaging, and costs increase. Prevent ad fatigue by:
✅ Refreshing creatives every 7-14 days.
✅ Running multiple ad variations.
✅ Using dynamic creative optimization (Facebook automatically tests different headlines, images, and CTAs).
5. Focus on Mobile Optimization
Over 90% of Facebook and Instagram users browse on mobile. Ensure your ads:
✅ Have vertical or square images/videos (better for mobile screens).
✅ Use fast-loading landing pages.
✅ Include clear call-to-actions (CTAs) that are easy to click.
Conclusion: Mastering Facebook & Instagram Ads
Understanding how Facebook and Instagram’s ad algorithms work is crucial for running successful campaigns. By improving your relevance score, targeting the right audience, and optimizing your creatives, you can reduce ad costs and increase conversions.
Facebook rewards advertisers who create high-quality, engaging ads—so focus on value-driven content, testing, and continuous optimization.