Demystifying Facebook Algorithm

Demystifying Facebook Algorithm: Quality Ranking, Engagement Rate Ranking, Conversion Rate Ranking

For about a few weeks already, in our Facebook Rockstars Group, we have been getting questions from confused ads managers about this innovation from Facebook – the new ads relevance system.

Where did the ‘Relevance Score ’go? What does ‘quality ranking’ show? What do they mean by ‘above average’? How on Earth should I use this new metrics?

Rejoice! The answers to these and not only questions are below ONLY for you!

So what is it exactly?

As most of you know, Facebook Ads platform behaves like an online auction where thousands of companies fight for the right to show their ads to a smaller portion of potential buyers.

So what does the new ads relevance system include?

Everyone who cares about how their ads perform saw these three new fields already: Quality ranking, Engagement rate ranking, and Conversion rate ranking.

So, the basis for the new relevance systemis more or less the same that existed before with the straightforward ‘relevance score’.

Facebook cares about its users and wants to show them the ads that are most relevant to them.

Facebook also cares about Facebook and prefers the ads that generate the most $$ for them!

The new relevance diagnostics aims at giving MORE INFO to the ads managers about what exactly should be improved in their ads to get to the TOP.

Basically, they break down the simple relevance score into three factors for more info to analyze:

Quality ranking –it identifies the public’s perception of your ad comparing to other similar creatives.

Facebook identifies such parameters of measurement for quality ranking as people’s viewing or hiding the ads, assessment of clickbait, engagement bait, etc.

Then, after reviewing the ad, FB assigns one of 5 possible values to your ad according to quality ranking:

1. Above average – the top 35% of the ads;

2. Average – the middle 35-55% of the ads;

3. Below average (bottom 35%);

4. Below average (bottom 20%);

5. Below average (bottom 10%).

Thus, when giving priority over other creatives, FB analyzes these statistics. For instance, with other parameters equal, your ad with ‘Average’ quality ranking will get priority over those with ‘Below average’.

Engagement rate ranking–it basically identifies the chance that a viewer will perform a required action – click on the add, comment on it, share it, etc.

Here, you must be careful to NOT RESORT TO ENGAGEMENT-BAITING, meaning asking the viewer for likes or comments directly in the ad, as Facebook is likely to low-rate these kinds of ads.

The assigned values are the same as for quality ranking. However, another difference between them as that engagement rate ranking is not available for just any ad.

It is blocked for these optimization goals: ad recall lift, impressions, reach, custom conversions or value. So don’t get confused when you sometimes do not see it.

Conversion rate ranking–this one calculates how likely your add is to get a conversion comparing to other similar creatives. Please remember that conversion not only means purchase. Any optimization goal that you have set up will be the factor for this parameter.

According to conversion rate ranking, your ads will also be ranked as above average, average, and three bottom below average (35%, 20%, or 10%).

As well as engagement rate ranking, it doesn’t work forad recall lift, impressions, reach, custom conversions or value.

AND how should you use this new ads relevance system?

Overall, it’s pretty simple and straightforward if you know how to assess these 5 categories and 3 parameters.

FOREMOST, you need to remember that you MUST review these three parameters altogether, not separately.

To guide us, Facebook has issued a great help page, where you can find ALL the possible combinations of the three ranking criteria and gives advice on how to act when something is NOT GOOD ENOUGH.

So, let’s say, your quality ranking is ‘below average’, which 2 other factors are average or above. If yes, you either target the wrong audience (which is already a GREAT insight for you) or the quality of your ad is just not high enough.

From our personal experience though, we have identified that if you have AT LEAST two of these parameters average or above, you are ALREADY HIGH in the pool and good to go.

However, if you get at least 2 below averages, FB will not tolerate your ad, and you will most likely only lose $$$ with it.

The table below shows how you can evaluate the three parameters in combination:

Nevertheless, everything comes from experience. Every experienced Facebook ads manager will tell you that nothing in Facebook algorithms is smooth and linear. So, you need to go and test-test-test, to know which quality-engagement-rate-conversion rate set up works for you and your product and which doesn’t.

When you are through with the results, do come back to us and let us know too! We are open for discussions on this topic and ready to help you if you have any extra q’s about the new relevance diagnostics.

Let’s share our ideas and boost our sales together!

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