Facebook has rolled out an overview of how its ad system works. It is aimed at helping
organizations understand the details about Facebook advertising and how to use it to reach
customers online. The social network says it uses two key factors to determine which ads to show users. First up is audience targeting method which is selected by advertisers, and
determines who are eligible to see each ad. The ad auction process is based on various factors relating to price bidding, individual user engagement, and ad quality.
Once the target audience is selected and the ad is submitted, Facebook decides who actually sees the promotions by determining the best match for each individual user based on this calculation.
Source: Socialmediatoday
