How Does Facebook Advertising Work?



I wanted to share a little bit about how Facebook advertising works. Maybe you’ve wondered how they work. I know in our Facebook Advertising Agency, it’s a question that we get all the time from people, especially when we’re doing our seminars and our webinars.

People are always asking, “How does Facebook advertising work?”

This video explains the advertising system and what controls you have as a person over your ad experience from a business owner’s point of view, but also from a consumer’s point of view, so let’s have a look and see what Facebook has to say about their advertising.

Facebook ads are really important part of Facebook. Their advertising platform allows business owners and organisations to connect with people that are probably interested in their products and service.

Facebook ads can be really useful and a relevant part of people’s day-to-day life, so we’re going to explore that a little bit more.

The greatest thing I love about Facebook if you’ve been in one of my seminars, I share about the ability for you to reach your target market, and you can advertise based on a number of factors.

There’s about 90+ different ways you can target your ideal clients and customers via Facebook.

You can define people via such as age, interest, location, and much more.


If you wanted to target people, say a cyclist, and they are in a certain age group, and maybe you wanted to target females that live in a particular area from your store.

There’s a cycle shop just down the road from our office, they can target people within a 5, 10 20kms etc, that are interested in biking, mobile phone users. Plus the could run ads only mobile¬†only that just target females if they wanted too ūüėȬ†

There’s so many ways that you can do this, and this is based off the interest, and the algorithm, and the data that people have or Facebook has of these people, so a great way to target your ideal client.

Essentially, how advertisers reach people is as a business owner, you will choose a goal of how you want to advertise. If you’re selling a product, you can have product placement ads.

If it’s brand awareness, if you want to show a video, if you’re wanting to generate leads, if you’re wanting to see a message, there are so many objectives you can choose these days to get in front of people.


Click To Request A Facebook Advertising Strategy Call


Facebook PixelThen, as an advertiser, you can identify your target audience, and as discussed already there’s a number of ways you can do that as well.

You can have a website audience, a custom audience from people that have been to your website that been tag by using your Facebook Advertising pixel so you can reach them whether it’s mobile phone, desktop, laptop, iPad, you can follow those people and add value to them.

You can actually upload a database to Facebook. You can create audiences. You can create lookalike audiences. There’s so much you can do from attaining suspect to then building your ideal client.

Then, you can create adverts to put in front of these people, and you can create offers that get them interested in coming to see you, driving traffic to your local business.

You can show those adverts in front of those audiences, and you can do it a number of different ways, and you can target people, their friends, people that look like them as far as the data goes.

There’s just so many ways you can do that, so very, very powerful way of advertising.

How does Facebook decide what adverts to show?

Essentially, it’s an auction system as well, but it’s based on a number of factors. Maybe based off the information that the advertiser is wanting to target, so whether the age, location, gender and or apps that they have or third-party sites from Facebook.

These different sources, and it’s really based off information that you have in your profile, what you look at and engage with on Facebook.

If you have shared your information with a business, so say you’ve given your name, your email address, your mobile phone number, they could be using that data to then present their message in front of you.

This could be your previous sales information or lead information or as mentioned previously you’ve been to their website, ¬†they may have tagged you in their Facebook pixel.


Loyalty programmes and Third-party providers are other ways, especially in the United States, or purchases through retail, etc.

Now as a consumer, though you have control over the way you see your ads, so you can actually click on the little button here and see why you’re seeing this ad. A lot of advertisers are very un-targeted, so they end up annoying a number of people.

You can see what they’re targeting, the audiences they’re targeting. ¬†The best part is you can also manage your advertising preferences. Here’s the link so you can view your advertising preferences and see what they are.

If you have any questions on Facebook Advertising for your business then please feel free to request a 20 minute strategy call.


Click To Request A Facebook Advertising Strategy Call


Have fun and take action

Scott Wilson