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How Does User Value Impact Facebook Ad Performance?

By Chris Madden

June 05, 2020

User value, sometimes called ad quality and relevance, is one of the critical factors the Facebook ads algorithm uses to decide whether to show an ad and how much the advertiser pays. User value answers the question: How useful is this ad to this user at this time?

Factors That Impact Facebook User Value

User value is all about the quality of the user experience. Facebook doesn’t want to bombard users with low-quality or irrelevant ads. It uses signals from within the platform as well as third-party sites to determine how useful and relevant the ad is to the target audience.

Ad relevance diagnostics also affect user value. These are metrics Facebook uses to figure out how relevant an ad is to the chosen audience. Facebook surfaces ad relevance diagnostics to advertisers, who can use them to optimize their campaigns. Among other factors, ad relevance metrics include quality ranking compared to other ads competing for the same audience, engagement rates, and conversion rates.

How to Improve User Value for Better Facebook Ad Performance

The Facebook ads algorithm attempts to optimize for two overarching factors: Facebook’s revenue from advertising and the experience of Facebook users. Facebook doesn’t prevent advertisers from creating ads with low user value, but it does punish them with high CPMs relative to better and more relevant ads.

Consider a lead generation ad intended to generate traffic for a landing page. If the ad is well-targeted and directs to a useful landing page with information valuable to the user, the CPM will be relatively low. But if the ad is misleading and leads to a landing page that bombards the user with pop-ups and irrelevant ads, the CPM will be much higher.

To optimize user value, advertisers must focus on the holistic experience their ads provide, from the creative assets and copy to landing pages and beyond.