What is Ad auction?
An ad auction is the process Meta uses to choose which ad a person sees each time there is a chance to show one. Every ad whose target audience includes that person can compete. The winner is the ad with the highest total value, which combines the advertiser's bid, the estimated action rate and ad quality, subject to a price floor. Because two of those factors measure relevance, a more relevant ad can beat ads with higher bids.
Meta says billions of these auctions run every day. Advertisers do not bid by hand in each one. Their bid strategy tells Meta how to bid for them, and Meta says its auction adjustments will not charge more than the bid.
Updated
Sources
- 1.The winning ad has the highest total value, a combination of bid, estimated action rates and ad quality, subject to a price floor. Meta Business Help Centre, About ad auctions. Checked 14 October 2026.
- 2.A bid strategy tells Meta's ad system how to bid for the advertiser in ad auctions. Meta Business Help Centre, About bid strategies. Checked 14 October 2026.