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Glossary keyword - Facebook Algorithm

Facebook Algorithm

Facebook algorithm is a tool ranking all posts and deciding content that users would like to see. When users see articles, videos, or photos that they like, there is always a positive reaction. Therefore, understanding how the Facebook algorithm works can help companies to use advertising, e-commerce, marketing research, and brand reputation tools effectively. 

Facebook Algorithm in Use

After experiencing data controversy because of leaking personal information in 2017, Facebook has changed its algorithm. Now it uses the “Vickrey-Clarke-Grovers” algorithm that functions as a closed auction. This algorithm creates a situation for advertisers to hide their bids from one another and to lead them to bid a real value. The algorithm’s name is called after its creators: William Vickrey, Theodore Groves, and Edward Clarke. 

How this algorithm works

The VCG auction motivates bidders to bid their real value; at the same time, it ensures the optimal strategy for every bidder. While the VCG mechanism permits to select a socially optimal outcome out of a group of possible ones, the auction itself makes an allocation of items socially optimal. Because the Facebook algorithm wants to display relevant stories for users on News Feed, there are four crucial factors to succeed in this goal. They are inventory, signals, predictions, and score. 

The inventory shows the full stock of all content existent, which can display to users on the News Feed. It embraces all posts from friends to publishers.  

Signals represent all information that Facebook can collect any content. They are the only factor that advertisers are capable of control over. It means advertisers can decide which type of content, publishers, its age, the goal is relevant for promoting their products or services. In this way, it is possible to satisfy customers and determine the target audience, which is crucial for brand identity

Predictions are crucial for representing behaviors of users, meaning that how a user is likely to have a positive reaction toward content. 

Finally, the score is the number attributed to any content that a user is possible to respond positively. Therefore, the Facebook algorithm is a must for companies to succeed in Digital Content Marketing, AI Marketing, and SMM Marketing. 

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