Free tool
How The Facebook Ads Auction Works
On Facebook and Instagram, an auction runs every time someone could see an ad. Set up your ad: the crowd changes colour, person by person, depending on which ad wins them.
At Meta, an auction runs every time there is an opportunity to show an ad to someone. The winning ad is the one with the highest total value, above a price floor. That value combines three factors: your bid, the estimated action rates (the chances this person takes the action you want) and the ad quality.
Set up your ad
People won
29 of 48
You win the 29 people for whom your ad has the highest total value, out of 48.
Advertiser C bids €48, more than you, and wins 3 people.
Person 47Their chance of acting on your ad : 1.8 %
- You€0.56wins
- Advertiser A€0.32wins
- Advertiser B€0.35wins
- Advertiser C€0.53wins
Hover or tap a person to see their auction.
Who wins the crowd
- You29
- Advertiser A8
- Advertiser B8
- Advertiser C3
Simplified model, example figures: total value = bid × estimated action rate, plus a quality bonus or penalty, and the ad with the highest value wins the person, above a price floor. Meta does not publish its formula, and the price paid is not simulated here. At Meta, the estimated action rate is specific to each person and each ad, and quality draws on people’s feedback and on low-quality signals such as sensational language or engagement bait. Meta Business Help: about ad auctions
Your Ad Bids More And Reaches Fewer People?
At Meta, your bid is one of three factors: the chance of action and your ad quality also go into the total value. Your creatives, your targeting and your ad sets tell where the bottleneck is.
20 minutes · No commitment · 100% confidential
How To Read The Simulator
Total value = bid × estimated action rate + quality (simplified model, Meta does not publish its formula)
Each figure is a person in your audience, and each one has their own chance of acting on each ad. They take the colour of the ad that wins them: the gradient shows the people you win. Hover one to see their auction, ad by ad.
Meta says it in its help pages: an ad that is relevant to a person could win against an ad with a higher bid. In the example, your ad wins 4 people out of 48 with a €50 bid, and 29 with a €25 bid once its estimated action rate goes up.
The 3 Factors Of Total Value
- The bid: what you are willing to spend to reach the result you want.
- Estimated action rates: the chances of getting that result by showing your ad to this person. Meta points out that clickbait and engagement bait do not improve an ad’s performance.
- Ad quality: measured among other things by feedback from people who saw or hid the ad, and by low-quality signals such as withholding information, sensational language or engagement bait.
- Together, estimated action rates and quality measure your ad’s relevance, which Meta shows in its ad relevance diagnostics.
Growth partner
Positioning, acquisition, innovation: together we build a lasting growth system.
Théo MaupiléFreelance Paid Media
Google PartnerSuperMalter
